**Sky Proposes Dropping Wrapped Bitcoin as Collateral**
Sky, formerly known as Maker, has proposed removing Wrapped Bitcoin (WBTC) as collateral from its decentralized finance platform, SparkLend. The decision stems from concerns over WBTC's ties to Justin Sun.
- **Key Points:**
- Sky's team announced the offboarding on Sept. 12.
- Users are advised to close WBTC positions on SparkLend to avoid liquidation.
- SparkLend currently has $73 million in debt collateralized against WBTC, with legacy vaults holding $127 million.
- The offboarding process will start on Sept. 26 and involve multiple executive votes.
- Concerns arise from WBTC's control potentially shifting to BitGlobal, linked to Justin Sun.
Sky is exploring alternative Bitcoin collateral options, including Coinbaseâs cbBTC and Thresholdâs tBTC.
