MakerDAO, which has been branded as Sky in recent weeks, will hold a governance vote to completely remove wBTC from the ecosystem.
According to Coindesk, Sky has proposed to stop using Wrapped Bitcoin as ecosystem collateral due to concerns that WBTC has a close connection to Tron founder Justin Sun.
Experts assessed that this was a major development for the DeFi sector, as the platform has a $200 million loan collateralized by tokens.
DeFi risk management firm BA Labs had suggested that Tron founder Justin Sun leave, citing concerns over centralization related to his relationship with wBTC’s custodian.
BA Labs also suggested that alternative products be added to the platform if the proposal is accepted, including dlcBTC, Threshold’s tBTC, FBTC backed by Mantle Network, and Coinbase’s own token cbBTC.
“Stablecoins and custody products tied to Justin Sun have a significant negative track record and carry high counterparty risk,” said analyst monet-supply, a representative of the DAO, and supported WBTC’s departure from the platform.
It was stated that the process of WBTC's separation from Sky is planned to take place in five stages, starting on September 26.
Sky’s SparkLend platform currently holds $73 million in wBTC-backed loans and an additional $127 million in wBTC debt in its coffers.