Sky to Offload WBTC Due to Increased Risks in BitGo Partnership

user avatar

by Giorgi Kostiuk

2 years ago

Made with AI

  1. Offloading WBTC
  2. A Broader Trend
  3. Conclusion


    4. The DeFi platform Sky has begun the phased offloading of its Wrapped Bitcoin (WBTC) collateral following a community vote.

    Offloading WBTC

    The DeFi platform Sky has begun the phased offloading of its Wrapped Bitcoin (WBTC) collateral following a community vote that concluded on September 19. The vote saw 88.17% in favor, with 95,826 MKR tokens pledged for the proposal and no votes against. The phased offloading will begin on October 3 and conclude by November 28, driven by concerns from BA Labs about recent changes in WBTC’s ownership, including a partnership between BitGo and BitGlobal.

    A Broader Trend

    Sky’s decision is part of a broader trend in the DeFi space. On September 18, the platform Aave posted a request for comment on its governance forum regarding its WBTC exposure due to similar concerns about the BitGo and BitGlobal partnership. Aave founder Stani Kulechov clarified that the platform is not offboarding WBTC but is considering a proposal from one of its risk providers to limit the token exposure.

    Conclusion

    Sky's decision to offload WBTC reflects growing caution in the DeFi industry as platforms reassess their collateral strategies. The WBTC market has seen a significant decline, with its market cap dropping to $9.6 billion, nearly 40% down from its peak in November 2021, highlighting market volatility.

    Sky’s decision to offload WBTC demonstrates growing concerns in the DeFi industry about the risks associated with the BitGo partnership and its potential impact on platform stability.

Tier I

Sector: #18291

Sealed Cache Room

Resource Cache

Resource Cache

Tier I

Requires 25% Tier Progress to Claim
Meme Cache

Meme Cache

Tier I

Requires 50% Tier Progress to Claim
Equipment Cache

Equipment Cache

Tier I

Requires 75% Tier Progress to Claim

After collecting, caches will be stored in your inventory and can be opened with Keys.

Other news

TON Foundation to Permanently Shut Down Legacy Bridge on September 1

chest

The TON Foundation has confirmed the permanent shutdown of its legacy bridge on September 1, requiring users to transition their wrapped TON and related assets back to native forms.

user avatarLeo van der Veen

PEPE and WLFI Show Volatility Amid Market Changes

chest

PEPE experiences a sharp recovery while WLFI sees steady activity following regulatory news.

user avatarLi Weicheng

Chainlink Expands Its Network with 12 New Integrations

chest

Chainlink has announced 12 new integrations across 10 blockchains, enhancing its crosschain data and infrastructure capabilities.

user avatarAisha Farooq

Flowra's Auction Framework Aims to Professionalize MEV Infrastructure

chest

Flowra's launch of the Open Orderflow Auction framework on August 21 aims to professionalize MEV and blockbuilding infrastructure on Solana, promoting a transparent and competitive transaction-ordering market.

user avatarTenzin Dorje

Honeypot Integration Gives Solana Validators More Control

chest

Honeypot integration allows Solana validators to customize block policies, enhancing control over transaction handling.

user avatarBayarjavkhlan Ganbaatar

Flowra Introduces Open Orderflow Auction for Solana Validators

chest

Flowra has launched its Open Orderflow Auction framework for Solana validators, introducing a third-party blockbuilding and MEV auction system designed around short, competitive ordering windows.

user avatarMohamed Farouk

Important disclaimer: The information presented on the Dapp.Expert portal is intended solely for informational purposes and does not constitute an investment recommendation or a guide to action in the field of cryptocurrencies. The Dapp.Expert team is not responsible for any potential losses or missed profits associated with the use of materials published on the site. Before making investment decisions in cryptocurrencies, we recommend consulting a qualified financial advisor.