Aave is preparing to resurrect its original product, ETHLend, in 2026, and founder Stani Kulechov says the comeback will feature one key detail that surprised even longtime users: collateral will be real Bitcoin, not a wrapped version.
The revelation came after an old screenshot of ETHLend resurfaced on X, showing the platform’s 2018 interface where users could choose Bitcoin, Ether, or LEND as collateral. Kulechov reposted the image, confirming that Aave’s predecessor originally supported native BTC loans, no wrappers, bridges, or synthetic layers involved.
A Return to Aave’s Roots
Kulechov wrote:
“Most interesting part was that the Bitcoin collateral was real Bitcoin, no wrappers. In 2026, we will bring ETHLend back, I promise.”
ETHLend launched as a peer-to-peer lending marketplace in 2017. But during the 2018 bear market, liquidity dried up and inefficiencies grew. The team pivoted, building a pooled-liquidity model that eventually became Aave, now a multichain DeFi giant with billions in locked value.
Most interesting part was that the Bitcoin collateral was real Bitcoin, no wrappers.
In 2026, we will bring ETHLend back, I promise. https://t.co/o1JIiiRmUs
— Stani.eth (@StaniKulechov) November 22, 2025
The 2026 relaunch signals a full-circle moment, bringing back the product that started it all, but with years of DeFi innovation behind it.
Why Native Bitcoin Matters
The industry has long relied on wrapped Bitcoin (WBTC, tBTC, etc.) to move BTC into DeFi. But wrapped assets come with counterparty risk, custodial exposure, and trust assumptions that many crypto users prefer to avoid.
Aave reviving ETHLend with real Bitcoin support, not wrapped Bitcoin, suggests:
- A push toward trust-minimized Bitcoin-on-DeFi mechanisms
- Expanding cross-chain functionality without custodial wrapping
- Renewed demand for BTC collateral in lending markets
- A strategic alignment with Bitcoin’s rising institutional relevance
It also aligns with the broader 2025 trend: native Bitcoin integration is becoming a major DeFi narrative, with several protocols and L2s racing to onboard BTC directly.
Aave’s Next Era Begins in 2026
ETHLend’s reintroduction won’t replace Aave, it will complement it. Aave remains one of the largest liquidity protocols in the world, while ETHLend returning as a standalone peer-to-peer product opens a fresh lane for individual lenders and borrowers seeking direct, one-to-one loan markets.
If Aave succeeds in enabling seamless native Bitcoin lending again, it could mark one of the biggest functional shifts in DeFi since the AMM revolution.
