September 25, 2024

Sky Advisor Eases Concerns Over WBTC Custody

An adviser to Sky, formerly MakerDAO, has reassured the community about Tron founder Justin Sun's role in the custody of WBTC, following discussions with BitGo CEO Mike Belshe. The adviser, BA Labs, initially raised concerns due to $200 million in loans linked to WBTC collateral.

Despite a community vote to offboard WBTC, ongoing discussions led to a recommendation to pause the offboarding process indefinitely. BA Labs noted that they now feel more comfortable with WBTC operations, citing reduced risk levels. Sun defended WBTC's strong track record, emphasizing its advantages over competing tokens.

The developments surrounding Sky and WBTC may affect three cryptocurrencies: AVAX, LINK, and MATIC.

AVAX (Avalanche): The stability of WBTC could boost confidence in DeFi platforms like Avalanche, where WBTC is often used as collateral. If Sky maintains WBTC, it could support the growth and development of DeFi applications on the Avalanche network.

LINK (Chainlink): Chainlink, as an oracle protocol, may benefit from the stability of WBTC in providing accurate price data for smart contracts. If WBTC continues to perform well, demand for LINK could increase due to the necessity for price information in DeFi applications.

MATIC (Polygon): Polygon could also benefit from the stability of WBTC, as many DeFi projects operate on this network. If WBTC becomes a primary collateral asset, it could attract more users and developers to the Polygon ecosystem, thereby increasing demand for MATIC.

#Write2Earn #WritetoEarn #LINK #MATIC #AVAX

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