Would You Use a Decentralized Protocol to Borrow Stablecoins Using Native BTC as Collateral?

I'm exploring a design for a non-custodial Bitcoin-backed lending protocol that lets users borrow real stablecoins (like USDC or USDT) using their native BTC as collateral — no wrapping, no bridging, and no KYC.

Most current decentralized BTC lending protocols:

• Require wrapped BTC (like wBTC on Ethereum or Liquid BTC)
• Only let you borrow illiquid or niche stablecoins (ZUSD, fUSD, etc.)
• Still rely on some form of centralized custody or opaque multisigs

This protocol would instead:

• Accept native BTC directly
• Use a decentralized custody model secured by signing nodes from restaking protocols like EigenLayer or Symbiotic
• Let you borrow USDC or USDT, which are liquid and usable across all major DeFi ecosystems
• Offer automated, transparent liquidation mechanisms
• Avoid the need for bridges or niche tokens with poor UX

To maintain security and functionality, the system would need to:

• Incentivize USD stablecoin lenders (to supply capital)
• Incentivize node operators who control collateral signing and liquidation enforcement
• Sustain this with fees or interest paid by borrowers

So while this setup could be much more trust-minimized and flexible than existing models, the borrow interest rate will need to be slightly higher than Aave/Compound, and maybe around that of centralized options like Ledn, which charges ~10–12% APR.

Would love to get your thoughts:

1. Does this sound like something you’d actually use?
2. Do the benefits (native BTC, no wrapping/bridging, real stablecoins, decentralized custody) justify a slightly higher borrow rate?

TL;DR:

Considering a DeFi protocol to borrow USDC/USDT using native BTC as collateral, held via signing nodes secured by EigenLayer/Symbiotic.
No wrapping, no obscure tokens. To work, it must incentivize stablecoin lenders and node operators, so borrower APR may be slightly higher than typical DeFi, around that of Ledn (~10–12%).
Would you use this?