BA Labs, an adviser to Sky, formerly known as Makerdao, has decided to stop recommending any additional parameter changes regarding the offboarding of wrapped bitcoin (WBTC) collateral. The move follows statements from Bitgo’s CEO Mike Belshe and a vote from Sky community members.
Sky Adviser Recommends Halting Wrapped Bitcoin Offboarding
This article was published more than a year ago. Some information may no longer be current.
WRITTEN BY
SHARE
Sky Adviser BA Labs Recommends Pausing WBTC Offboarding Changes
BA Labs’ decision comes after concerns were raised regarding the involvement of Bit Global in the management of WBTC. Bitgo, the primary custodian of WBTC, reassured the community, with CEO Mike Belshe stating that there was no threat. Not too long ago, Sky members voted in favor of offboarding WBTC as collateral in a multi-step scheme that was set to start next month.
At that time in early August, BA Labs said, “We recommend proceeding with an orderly offboarding of all WBTC collateral exposure from the Sky Ecosystem, including Legacy Vault Types and Sparklends.” The forum discussion shed light on a range of concerns BA Labs identified with Bit Global.
In its latest statement, BA Labs shared that while they initially had concerns about Bit Global’s role as a WBTC signer, these concerns were alleviated following further clarification from Bitgo’s CEO. With Bitgo committing to public transparency and providing advanced notice of any changes in WBTC custody, BA Labs expressed confidence that the risks had diminished.
The adviser suggested pausing any additional parameter changes, noting that BA Labs and Sky will keep an eye on market trends and custody protocols before deciding on any future adjustments. “We no longer recommend implementing any further parameter changes at this time,” BA Labs concluded.
What do you think about the recent statement from BA Labs? Share your thoughts and opinions about this subject in the comments section below.
