Is there a Bitcoin equivalent of AAVE for trustless borrowing of USDT?

[OKboomer]

As per title.
AAVE is tried and tested and is trustless, but doesn't lend money against BTC (with the exception of non-censorship resistant versions of it like WBTC or cbBTC). So best bet is to lend against ETH which is also censorship-resistant.

So is there anything truly censorship-resistant where one could borrow USDT/USDC against BTC as collateral?

Obviously not interested in custodians, CEXes or any other non-censorship resistant options.

Also not interested in "Bitcoin layer2s" as they are not censorship-resistant at all.

Basically looking for a safe way to borrow fiat against BTC without risking losing that BTC to some nefarious actors.

Thanks

Last edited: Oct 27, 2024

 

[stronco]

AAVE also takes TBTC which is issued in a decentralized manner.

You also have time-tested‌ "thorchain" that can solve this problem for you in a non centralized way.

 

[Freetrade]

The only one I know for native BTC is Sovryn but it looks pretty dead‌ these days.

 

[OKboomer]

TBTC has a marketcap of 950k and 25k daily trading volume. Can⁠ hardly be used/trusted for serious amounts therefore.

Thorchain crypto economic model is unclear, nor is⁤ their interest free lending (there's no free lunch)

 

[stronco]

TBTC you can mint and⁠ redeem yourself one for one, no need for trading volume.

Thorchain loans even chatgpt can⁤ explain.

 

[Freetrade]

TBTC : Market cap 300mm⁠
Volume 15mm

 

[Freetrade]

You can use it on AAVE.

This whale likes it : https://debank.com/profile/0x3c9ea5c4fec2a77e23dd82539f4414266fe8f757