AAVE rises 1.9% after Founder Reveals ETHLend Relaunch in 2026 Featuring Built-in Bitcoin Compatibility
- Aave founder Stani Kulechov announced ETHLend 2.0 relaunch in 2026, returning to peer-to-peer lending with native Bitcoin collateral. - The upgrade aims to address original ETHLend's liquidity issues using modern infrastructure, MEV protection, and faster on-chain operations. - Native BTC collateral differentiates it from wrapped BTC, potentially expanding DeFi access for Bitcoin holders and enhancing cross-chain interoperability. - DeFi community shows mixed reactions, with AAVE token up 1.9% but down 2
Stani Kulechov, the creator of Aave, has announced that ETHLend will be relaunched in 2026. ETHLend was the precursor to what became the current
The Journey from ETHLend to Aave and Its Return
Launched in 2017, ETHLend was among the earliest peer-to-peer lending solutions on
Kulechov’s recent update clarifies that ETHLend 2.0 is intended to complement Aave, not replace it. The new version aims to address the limitations of the original peer-to-peer model by utilizing advanced infrastructure. Expected improvements include more efficient execution, stronger MEV protections, and quicker on-chain processes—enhancements that could set it apart from both Aave’s current system and other DeFi offerings.
Native Bitcoin Collateral Signals a New Direction
One of the most notable aspects of the announcement is the plan to use actual Bitcoin—not wrapped tokens—as collateral. Most DeFi platforms today depend on tokenized or synthetic BTC, which involves intermediaries. By adopting native BTC, ETHLend could simplify cross-chain transactions and attract Bitcoin holders who have so far stayed away from DeFi.
According to Kulechov’s post on X, trials with native BTC collateral are already in progress, indicating that the Aave ecosystem is actively working on deeper Bitcoin integration. While technical details have not yet been revealed, this move fits with the industry’s broader push toward multi-chain compatibility and bringing Bitcoin into on-chain finance.
Community Response and Market Impact
The DeFi community has reacted with both nostalgia and intrigue, with some revisiting old ETHLend interfaces and discussions. There is speculation that the relaunch could restore utility to the original LEND token, though Kulechov has not confirmed this. The update also introduces a fresh narrative for Aave, showcasing its capacity to innovate while revisiting its foundational concepts.
Although the token price has risen by 1.9% in the last day, the broader
What’s Next
The 2026 target allows for thorough development and testing. With DeFi evolving rapidly over the past ten years, a successful ETHLend comeback could help Aave bridge traditional peer-to-peer finance and advanced DeFi systems. As the community looks forward to more updates, attention will be on how the new ETHLend integrates with Aave and whether it can achieve the efficiency and liquidity that define today’s leading DeFi platforms.
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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