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Bitcoin News Update: Aave's ETHLend 2.0 Disrupts DeFi's Dependence on Wrapped Tokens by Introducing Native Bitcoin

Bitcoin News Update: Aave's ETHLend 2.0 Disrupts DeFi's Dependence on Wrapped Tokens by Introducing Native Bitcoin

Bitget-RWA2025/11/22 10:26
By:Bitget-RWA

- Aave founder Stani Kulechov announced ETHLend 2.0's 2026 relaunch using native Bitcoin as collateral, diverging from wrapped tokens. - The hybrid P2P-liquidity pool model aims to enhance DeFi efficiency while reducing synthetic asset reliance through cross-chain BTC integration. - This revival aligns with growing institutional demand for non-wrapped BTC and could restore utility for the legacy LEND token. - Despite bearish market conditions, the move signals confidence in Bitcoin's foundational role for

Stani Kulechov, the founder of Aave, has announced that ETHLend—the project’s original peer-to-peer lending platform—will be revived in 2026 with a major update:

instead of relying on wrapped tokens. Sharing the news on X, Kulechov revealed that this relaunch will blend ETHLend’s 2017 origins with the latest DeFi innovations. The updated platform is designed to tackle liquidity and efficiency challenges in decentralized finance by merging P2P lending with the benefits of pooled liquidity systems.

Bitcoin News Update: Aave's ETHLend 2.0 Disrupts DeFi's Dependence on Wrapped Tokens by Introducing Native Bitcoin image 0

ETHLend, which became known as

in 2018, but transitioned to a liquidity pool structure during the 2018 bear market to boost scalability and improve user experience. The upcoming ETHLend 2.0 is expected to maintain its P2P foundation while taking advantage of today’s greater liquidity and quicker on-chain transactions. — in contrast to most DeFi platforms that use wrapped BTC — as collateral, which could simplify cross-chain operations and lessen dependence on synthetic tokens.

The DeFi sector has responded with both nostalgia and intrigue. Old screenshots of ETHLend’s 2018 interface have resurfaced on social media, showcasing the project’s journey from a small-scale P2P initiative to a major DeFi ecosystem.

to the original LEND token, though no official details have been released. The move to support native also reflects a wider industry shift, as institutional interest in non-wrapped BTC increases amid tighter scrutiny of synthetic assets.

Although the focus is on ETHLend’s return, the overall crypto market remains in a downturn.

, with its RSI nearing oversold levels, while has fallen beneath important moving averages, highlighting ongoing technical weakness. Nevertheless, Kulechov’s plans indicate strong faith in Bitcoin’s importance for DeFi, especially as on-chain infrastructure advances. Using native BTC may also help reduce the counterparty risks that come with wrapped tokens, which is a key issue for institutional investors.

This revival highlights Aave’s intention to move beyond just liquidity pools and broaden its product lineup. While it’s still uncertain whether ETHLend 2.0 will be a standalone platform or integrated with Aave, the renewed focus on P2P lending suggests it will complement Aave’s current offerings. This could appeal to users who prefer direct counterparty relationships, a need not fully met by automated market makers.

As DeFi continues to develop, bringing back ETHLend with native Bitcoin support puts Aave in a strong position to attract both long-time users and new institutional participants. With 2026 approaching, the industry will be watching closely to see how this hybrid approach balances fresh innovation with the efficiency that made Aave a leader in the space.

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Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.

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