DeFi Giant Wants to Delist Bitcoin: 200 Million Position Will Be Affected! - Coin Bulletin

Sky, the giant of the decentralized finance sector, attracted attention with its vote on Bitcoin.

Sky, formerly known as MakerDAO, is preparing to make a significant move in the DeFi world with this development.

Sky initiated a vote on September 12, Thursday, in a governance announcement to completely remove Wrapped Bitcoin (wBTC) assets from its ecosystem.

If the proposal is accepted by the community, the $200 million DeFi credit on the platform will be directly affected.

The potential impact of TRON and Justin Sun on DeFi

However, the possible effects of TRON founder Justin Sun on the storage of these assets have raised concerns in the governance structures of the Sky ecosystem. DeFi risk management firm BA Labs had suggested reducing exposure to wBTC and has now proposed a process to completely remove it.

BA Labs suggested a five-step process for removing wBTC assets from the ecosystem, and the first step of this process will start on 26th September.

It was reported that voting will be conducted for each stage. BA Labs suggested integrating alternative assets into the platform, stating, “Legal reviews do not provide sufficient assurance”.

The Tron team has not yet made a statement on the matter. Currently, the SparkLend platform, which is connected to Sky, has $73 million worth of loans collateralized with wBTC, while it is reported that there is a $127 million debt against wBTC in Sky's old vaults.

Does the BitGo and wBTC equation get mixed up?

These developments raise tensions about wBTC, bringing to mind the announcement of BitGo.

Crypto custody firm BitGo announced earlier this month that the control of wBTC will be restructured under a joint operation with the global custody platform BiT Global.

This has highlighted the seriousness of the issue as DeFi platforms collectively increase decentralized queries.