Defi Lending Protocol Sky to Ditch WBTC

Krutika Adani

Action Taken After Overwhelming  Governance Vote

DeFi protocol Sky, formerly Maker, will ditch WBTC in a phased manner after the community voted in favor of its removal by an overwhelming 88% majority vote.

Why Ditch WBTC?

WBTC has come under scrutiny over alleged Chinese links and a few security concerns. However, several well-known figures, such as Mike Belshe and Justin Tron, dismissed any FUDs related to it.

Not The First Platform

A similar proposal has also been put forward on AAVE’s governance portal.

Offload in Phases

This year, the offload will occur in phases starting on 3 October and ending on 28 November. This is done to limit its market impact.

WBTC and its Importance in DeFi

Wrapped Bitcoin is a BTC-pegged cryptocurrency used instead of Bitcoin in DeFi because the Ethereum blockchain cannot process native Bitcoin.

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