Sky, the decentralized finance lending platform formerly known as MakerDAO, is rethinking its strategy on using Wrapped Bitcoin (WBTC) as collateral. This comes after significant dialogue on the Sky forum, particularly with insights from BitGo CEO Mike Belshe. Until recently, BitGo was the sole custodian of the Bitcoin backing WBTC, but custody shifted to Tron founder Justin Sun following a partnership formed in August.

Concerns raised by BA Labs, Sky’s advisor, focus on Sun's involvement, especially as around $200 million in loans on the platform are tied to WBTC. In response, the Sky community voted on a plan to phase out WBTC as collateral starting in early October. However, the discussions are ongoing as the community seeks the best path forward.

Stay tuned for updates as Sky navigates this critical decision in the ever-evolving DeFi landscape.

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