Aave Moves Native Bitcoin Collateral Proposal to Six-Day Snapshot Vote With 300 BTC Cap

Aave has moved a plan to recognize Bitcoin held on its original network as loan collateral from the Aave governance forum into a six-day Snapshot vote, with an initial cap of 300 BTC.

Aave Labs placed the proposal on Snapshot on November 5, 2026. The voting window runs for six days and is scheduled to close on November 11, 2026.

What the Proposal Covers

The proposal asks the Aave community to approve recognizing native Bitcoin — BTC held directly on the Bitcoin network — as eligible loan collateral, subject to an initial supply cap of 300 BTC. Supply caps of this kind limit how much of an asset can be deposited into the protocol, a mechanism Aave governance has commonly used to manage initial risk exposure when onboarding new collateral. Because the cap is designated as initial, it functions as a starting limit that Aave governance can revisit through subsequent votes rather than a permanent ceiling.

Context: Bitcoin Collateral on Aave

Aave is a decentralized finance lending protocol in which users supply assets to pooled markets and borrow against them. Aave's markets have historically accepted tokenized Bitcoin representations — such as wrapped Bitcoin (WBTC) — rather than BTC held on the Bitcoin network itself, because the protocol operates on smart contract platforms. Tokenized representations like WBTC mirror Bitcoin held outside these platforms through custodial and bridging arrangements, which has been the principal route for using Bitcoin's value in DeFi lending to date. The current proposal therefore concerns recognizing BTC in its native form as loan collateral, a step that draws attention given Bitcoin's standing as the largest cryptocurrency by market capitalization.

Governance Process

The shift from forum discussion to Snapshot voting follows Aave's standard governance sequence: proposals are typically debated on the Aave governance forum, then put to an off-chain temperature-check vote on Snapshot, before any executable change proceeds to an on-chain AIP vote. Snapshot votes are off-chain signaling votes; approval of this proposal would represent a step in that sequence rather than the final step that activates native Bitcoin as collateral. The scheduled close of voting on November 11, 2026, and any follow-on on-chain AIP vote are the next points to watch in the process.

This content was first published on COINOTAG: https://en.coinotag.com/aave-native-bitcoin-collateral-snapshot-vote-300-btc