Bitcoin holders are borrowing on Base at record levels

Bitcoin holders are increasingly using the Base platform to secure loans, with $1.6 billion borrowed primarily by Coinbase customers through decentralized finance (DeFi) lending platforms. This surge in activity is facilitated by the use of tokenized Bitcoin, notably Coinbase’s cbBTC, as collateral. The lending occurs without direct user involvement in the protocols, instead utilizing platforms like Morpho and Aave to route collateral through Base. This development highlights Base’s growing role as a significant venue for Bitcoin-backed borrowing in the DeFi space, with protocol parameters governing collateral and liquidation exposure.

Source: Crypto Briefing