TechFlow news, September 13 — According to Coindesk, the DeFi lending platform Sky (formerly MakerDAO) will vote on fully divesting Wrapped Bitcoin (WBTC) from its ecosystem. If approved, this proposal could impact approximately $200 million worth of DeFi loans within the Sky ecosystem. WBTC is a token that allows investors to use Bitcoin on other blockchains. With a market capitalization of $9 billion, it plays a significant role in DeFi lending.
BA Labs, an influential DeFi risk management firm in Sky's governance, previously proposed reducing exposure to WBTC due to concerns over risks associated with Tron founder Justin Sun’s involvement in the custody of WBTC's underlying assets. In its latest proposal, BA Labs recommends phasing out WBTC from collateral assets in five steps, with the first round of voting set to begin on September 26. Currently, about $73 million in loans on SparkLend, Sky’s lending platform, are backed by WBTC, and another $127 million in WBTC-collateralized debt exists within Sky’s traditional vaults.
