The Aave founder stated on X that the Bitcoin collateral being mentioned is the native BTC on the blockchain, not the wrapped version. He also announced that ETHLend—the original P2P lending platform of Aave—will be relaunched in 2026. ETHLend previously operated on a model that directly connected borrowers and lenders, but during the 2018 bear market, the model faced issues such as liquidity fragmentation, slow matching speeds, and unstable demand.
This forced the team to restructure and reorient the project, leading to the rebranding as Aave and a shift to a pooled liquidity model that enabled instant borrowing and lending. This change laid the foundation for Aave to develop into the leading multi-chain DeFi protocol it is today.
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AAVE confirms use of native BTC and announces plan to revive Ethlend in 2026
The Aave founder stated on X that the Bitcoin collateral being mentioned is the native BTC on the blockchain, not the wrapped version. He also announced that ETHLend—the original P2P lending platform of Aave—will be relaunched in 2026. ETHLend previously operated on a model that directly connected borrowers and lenders, but during the 2018 bear market, the model faced issues such as liquidity fragmentation, slow matching speeds, and unstable demand.
This forced the team to restructure and reorient the project, leading to the rebranding as Aave and a shift to a pooled liquidity model that enabled instant borrowing and lending. This change laid the foundation for Aave to develop into the leading multi-chain DeFi protocol it is today.