Sky Pauses Plan to Offboard Wrapped Bitcoin, After Chat With BitGo's Belshe
Summary
Sky, formerly MakerDAO, may pause plans to offboard wrapped bitcoin (WBTC) as collateral due to new recommendations from BA Labs. Discussions highlighted concerns over Justin Sun's involvement after a custody transfer to his partnership. WBTC, with a market cap of $9.7 billion, is pivotal in DeFi lending, with $200 million in loans linked to its collateral. Despite a community vote to offboard WBTC, ongoing discussions led to reassessments of the custody arrangement. BA Labs noted reduced collateral exposure to $170 million, deeming the risk acceptable and recommending an indefinite pause on offboarding. Competitors like dlcBTC and cbBTC have emerged amid these developments.
