Sky (formerly known as MakerDAO) will hold a governance vote to completely remove Wrapped Bitcoin (wBTC) from its ecosystem.
Reasons for the Change
According to Coindesk, Sky has proposed to stop using Wrapped Bitcoin as ecosystem collateral due to concerns over wBTC's close connection to Tron founder Justin Sun.
Expert Opinions
Experts assessed this as a major development for the DeFi sector, as the platform has a $200 million loan collateralized by tokens. DeFi risk management firm BA Labs had suggested that Justin Sun leave, citing concerns over centralization related to his relationship with wBTC’s custodian.
Future Plans
BA Labs also suggested that alternative products be added to the platform if the proposal is accepted, including dlcBTC, Threshold’s tBTC, FBTC backed by Mantle Network, and Coinbase’s own token cbBTC. The process of wBTC's removal from Sky is planned to take place in five stages, starting on September 26. Sky’s SparkLend platform currently holds $73 million in wBTC-backed loans and an additional $127 million in wBTC debt.
Sky’s decision to remove wBTC from its ecosystem could significantly impact the DeFi market, prompting changes in collateral and risk management.
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