1 month ago
MakerDAO, the decentralized autonomous enactment down the DeFi protocol Maker, has approved a connection to halt caller borrowing against BitGo’s wrapped Bitcoin (WBTC).
On Aug. 15, MakerDAO revealed that it was reducing the indebtedness ceiling for each WBTC vaults to zero. This determination efficaciously prevents immoderate caller borrowing from these vaults and lowers WBTC’s loan-to-value (LTV) ratio connected SparkLend to 0%.
The protocol outlined the changes, stating:
“WBTC-A, WBTC-B, and WBTC-C person been removed from the Debt Ceiling Instant Access Module (DC-IAM). The indebtedness ceilings for WBTC-A, WBTC-B, and WBTC-C are present acceptable to 0 DAI.”
MakerDAO clarified that these changes volition not impact existing borrowing positions wrong the Maker Protocol’s halfway WBTC vaults and SparkLend.
Etherscan data shows that 2 Maker’s astute contracts are among the apical 10 largest holders of WBTC, with much than 6,600 WBTC tokens valued astatine astir $380 million.
Why MakerDAO removed WBTC
MakerDAO’s determination to region WBTC is linked to caller assemblage concerns implicit Tron laminitis Justin Sun’s engagement with the integer asset.
Last week, BitGo, the developer and custodian of WBTC, announced a concern involving Sun and BiT Global to negociate WBTC custody. This statement shifted custody from the United States to aggregate jurisdictions, including Hong Kong and Singapore.
Following the news, respective crypto stakeholders, including MakerDAO contributors, expressed concerns astir the information of the tokens and Sun’s engagement with the project.
However, BitGo CEO Mike Belshe emphasized that Sun has nary power implicit the tokens and assured that the crypto entrepreneur had nary entree to the crypto custodian’s plus keys.
Over $30 cardinal WBTC burned
Nevertheless, these assurances look to person had nary interaction connected crypto investors’ confidence.
On-chain information shows that crypto investors were reducing their vulnerability to WBTC by burning and redeeming their assets. According to its dashboard, astir 575 WBTC, worthy implicit $30 million, person been burned during the past 7 days, with crypto speech Crypto.com and Galaxy Digital starring the charge.
Meanwhile, WBTC’s rivals, similar tBTC, person seen a maturation successful their numbers. According to the Dune Analytics dashboard, tBTC holders surpassed 1,000 during the past week, portion its full proviso stood astatine 3,107.36 tBTC arsenic of property time, equivalent to much than $180 million.
Additionally, Coinbase has hinted astatine launching its ain wrapped Bitcoin merchandise soon.
The station Crypto investors redeem implicit $30 cardinal WBTC arsenic MakerDAO halts caller loans appeared archetypal connected CryptoSlate.
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