Bitcoin News Update: Aave's ETHLend 2.0 Disrupts DeFi's Dependence on Wrapped Tokens by Introducing Native Bitcoin
- 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:
ETHLend, which became known as
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.
Although the focus is on ETHLend’s return, the overall crypto market remains in a downturn.
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.
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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