According to BlockBeats, on August 11, MakerDAO announced a proposal to reduce the scale of WBTC collateral in response to potential risks associated with changes in custody. The proposal is set to be voted on August 12 and includes several key measures.

The core vault adjustments involve reducing the WBTC-A DC-IAM limit (maximum collateral amount) from $500 million to zero, the WBTC-B DC-IAM limit from $250 million to zero, and the WBTC-C DC-IAM limit from $500 million to zero. Additionally, SparkLend will prohibit borrowing WBTC and reduce the loan collateral rate for WBTC from 74% to zero.

BA Labs, a crypto risk analysis and assessment firm, highlighted the increased risks associated with the upcoming change in WBTC custody. They noted that if BitGo or other related parties cannot convincingly demonstrate the security of maintaining the current WBTC collateral integration, BA Labs may consider further parameter adjustments to protect the protocol, potentially leading to the complete removal of WBTC collateral from Maker and SparkLend. BA Labs emphasized that these actions aim to limit the growth of WBTC exposure and address the potential risks arising from the custody change.