Sky may suspend plans to use WBTC as collateral
2024-09-25 08:23:49
Sky (formerly MakerDAO), a decentralized financial lending platform, may be preparing to suspend its planned move to use WBTC as collateral, following the latest advice from an influential advisor. The decision stems from a lengthy discussion with Mike Belshe, CEO of BitGo, on the Sky discussion forum. BitGo was the sole custodian of Bitcoin, on which WBTC depends, until August, when it reached a strategic partnership with Tron founder Justin Sun to transfer custody to the latter. Sky's advisor BA Labs has expressed concerns about Justin Sun's involvement in the project, especially considering that about $200 million of loans on the platform are somehow tied to WBTC collateral. As a result, Sky community members voted last week to approve a five-step plan aimed at excluding WBTC from collateral starting in early October. But after the vote, the discussion on the matter did not stop. Belshe posted a lot on the forum to clarify that the new hosting arrangement was misunderstood, and Sun Yuchen did not have the ability to unilaterally change the existing structure.