- Background on Wrapped Bitcoin (wBTC)
- Concerns Over Transparency and Ownership
- Details of the Proposed Offboarding
Sky, the decentralized finance (DeFi) platform formerly known as MakerDAO, announced a proposal to completely remove Wrapped Bitcoin (wBTC) as collateral from its ecosystem.
Background on Wrapped Bitcoin (wBTC)
Wrapped Bitcoin (wBTC) is a token that represents Bitcoin on the Ethereum blockchain, allowing BTC to be used in decentralized finance applications.
Concerns Over Transparency and Ownership
The proposal to offboard wBTC stems from concerns raised by BA Labs, a prominent risk management firm in the DeFi space.
Details of the Proposed Offboarding
The proposal to offboard wBTC will involve several steps, starting with an Executive Vote on September 26. If approved, Sky will begin the process of removing wBTC as collateral from its lending platforms, including Legacy Vaults and SparkLend.
The full removal of wBTC from the Sky ecosystem is expected to be completed within 180 days, creating competition for other tokenized Bitcoin products in the market.
Comments