Sky DeFi Platform to Divest Wrapped Bitcoin Exposure Amid Ownership Concerns
Sky, previously generally known as Maker, is divesting its wrapped Bitcoin following a group governance vote that was finalized on September 19.
In whole, the three-day vote noticed 95,826 MKR tokens pledged in help of the proposal. Apparently, whereas no votes had been forged in opposition to the transfer, 11.83% of contributors abstained. It should be famous that solely 13 MKR whales voted on this key decision-making course of.
The gradual sale of WBTC by Sky will happen from October 3 to November 28. At present, WBTC-backed collateralized money owed totalling $61.38 million are managed by means of SparkLend – a decentralized non-custodial liquidity protocol operated by Sky.
Latest modifications to WBTC’s possession and management construction appeared to have motivated this growth. In August, BA Labs, an advisor to Sky, flagged some causes in opposition to WBTC.
Their pink flags had been sourced from BitGo, the custodian holding Bitcoin backing WBTC, partnering with BitGlobal-affiliated firm. This was in mild of such an August-announced partnership amid considerations cited across the potential for counterparty dangers given previous expertise with Solar-affiliated merchandise.
It isn’t alone in its concern. Aave, one other huge participant within the DeFi ecosystem, equally plans to cut back publicity to WBTC. A remark request posted on Aave’s governance discussion board on September 18 echoed comparable considerations about BitGo partnering with BIT International and what which means to WBTC transparency and consumer assurance.
As platforms rethink their relationship with WBTC, Sky is pursuing different wrapped Bitcoin variants to be used as collateral, equivalent to Coinbase’s cbBTC and Threshold’s tBTC.
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