September 13, 2024
Sky Votes to Remove Wrapped Bitcoin (wBTC) Amid Concerns Over Justin Sun
Sky, the DeFi lender formerly known as MakerDAO, is preparing to hold an important vote to completely eliminate Wrapped Bitcoin (wBTC) from its ecosystem. This action could impact approximately $200 million in loans within the platform.
WBTC is a token that allows the use of Bitcoin on other blockchains, with a market capitalization of $9 billion. BA Labs has proposed reducing exposure to wBTC due to concerns regarding Justin Sun.
The removal process will occur in five steps, starting on September 26, with each step being voted on separately.
The decision by Sky to vote on removing Wrapped Bitcoin (wBTC) could impact LINK (Chainlink) and GRT (The Graph) in several ways. Firstly, it may reduce market confidence, leading to concerns among investors that could affect the value of LINK and GRT. Additionally, the removal of wBTC might decrease liquidity in DeFi protocols, impacting the usage of LINK and GRT in decentralized applications.
Conversely, this situation could present new opportunities, as investors might turn to alternative assets, including LINK and GRT, in search of substitutes for wBTC. Furthermore, LINK, as an oracle, may see increased demand for smart contracts if users seek to build new applications independent of wBTC. Lastly, the potential need for alternative solutions could lead to greater integration and collaboration with LINK and GRT in new DeFi platforms. Overall, the impact on LINK and GRT will depend on market reactions and how DeFi projects adjust their strategies following the removal of wBTC.
