Decentralized finance platform Sky, formerly known as Maker, has approved a plan to offload Wrapped Bitcoin (WBTC) following a community vote. This decision was driven by various risks associated with the ownership and control of WBTC.
Voting Results
The vote, which lasted three days and closed on September 19, garnered significant attention from the Sky community. The proposal was approved by a majority of 88.17%, with 95,826 MKR votes, while 11.83% abstained. There were no votes against the proposal, although only 13 MKR whales participated.
Concerns About WBTC
In August, BA Labs, an advisor to the platform, raised concerns about WBTC. Amid changes in WBTC ownership and control involving Justin Sun and his affiliates, the Sky team proposed a plan to offload WBTC on September 12, 2023. They cited significant counterparty risks associated with these changes.
Alternatives to Wrapped Bitcoin
Sky is considering alternative forms of Wrapped Bitcoin, such as Coinbase's cbBTC and Threshold's tBTC, due to the risks associated with the current owner of WBTC. The platform plans to begin the WBTC offloading process in multiple phases, starting on October 3 and finalizing on November 28.
Sky will continue to monitor the situation and consider alternative options to ensure the reliability and security of its assets. Meanwhile, other DeFi platforms like Aave are also analyzing the risks associated with WBTC, underscoring the importance of security in this sector.
Comments