TechFlow news — On August 13, BA Labs proposed a series of parameter adjustments on the Maker forum to effectively manage risks associated with WBTC collateral, affecting both the Maker Protocol’s core WBTC vaults and SparkLend. The proposal aims to halt new WBTC-collateralized borrowing and will be decided through an upcoming executive vote. If approved, the changes will not impact existing borrowing positions, but will restrict future WBTC-collateralized loans.
Specific proposed adjustments include:
Core Vaults:
- WBTC-A DC-IAM ceiling (maximum debt ceiling): Adjusted to 0.
- WBTC-B DC-IAM ceiling (maximum debt ceiling): Adjusted to 0.
- WBTC-C DC-IAM ceiling (maximum debt ceiling): Adjusted to 0.
SparkLend:
- Halt WBTC lending.
- Adjust WBTC loan-to-value ratio (LTV) from 74% to 0%.
Users who have already borrowed using WBTC as collateral in either the Maker Protocol core WBTC vaults or SparkLend will not be affected by these adjustments—their current positions and loan parameters will remain unchanged. As part of the Stability Advisory Committee, BA Labs will continue evaluating WBTC’s risk profile as collateral and may propose further measures accordingly.
