MakerDAO disables WBTC borrows after Justin Sun involvement revealed
MakerDAO, the lending protocol that operates the popular Dai stablecoin, has passed an executive vote that will disable future borrows against wrapped bitcoin (WBTC) after it was announced the asset was transitioning to a new joint venture that would involve BiT Global, BitGo, and Justin Sun.
The changes don’t affect current borrows of WBTC but will prevent users from making new borrows against it.
There’s currently approximately $466 million in WBTC value in MakerDAO, according to data from makerburn.com.
This proposal also reduces stability fees for several assets, including ETH and WBTC, and reduces the Dai Savings Rate to 6%.
Read more: Justin Sun has 99 problems and WBTC is two of them
This change comes after BitGo, the custodian that has traditionally held the bitcoins associated with WBTC, announced it was transitioning WBTC to a joint venture between itself, BiT Global, and Sun.
Initially, BiT Global, which is advised by Sun, was going to hold two of the keys, but following community backlash, the model has changed so that BitGo will hold two of the keys.
BitGo has emphasized that this change will result in greater jurisdictional decentralization, but the community has raised concerns about the involvement of Sun and the less well-known BiT Global.
Unchained has reported that Aave, another lending platform, is preparing to onboard TBTC, another bitcoin collateralized token, following these changes to WBTC.
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