MakerDAO disables WBTC borrows after Justin Sun involvement revealed
MakerDAO, the lending protocol that operates the popular Dai stablecoin, has passed an executive vote that will disable future borrows against wrapped bitcoin (WBTC) after it was announced the asset was transitioning to a new joint venture that would involve BiT Global, BitGo, and Justin Sun. The changes don’t affect current borrows of WBTC but will prevent users from making new borrows against it. There’s currently approximately $466 million in WBTC value in MakerDAO, according to data from makerburn.com. This proposal also reduces stability fees for several assets, including ETH and WBTC, and reduces the Dai Savings Rate to 6% . How involved is Justin Sun with WBTC’s new custodian BiT Global? Read more: Justin Sun has 99 problems and WBTC is two of them This change comes after BitGo, the custodian that has traditionally held the bitcoins associated with WBTC, announced it was transitioning WBTC to a joint venture between itself, BiT Global, and Sun. Initially, B...