Oddbean new post about login | logout MakerDAO Suspends $WBTC Debts Amid Governance Concerns and Centralization Risks. In a crucial development within the DeFi sector, MakerDAO has announced a stop on the latest Wrapped Bitcoin debts. The prospective decision of MakerDAO comes after the recent shift of control over $WBTC to Bit Global, raising apprehensions among the community members regarding the likely future influence of the Tron ecosystem and Justin Sun on WBTC. https://yakihonne.s3.ap-east-1.amazonaws.com/89f93336152fbe149c10445b7e780339e16f9ed7ceeb1596414c65c2779b7582/files/1723456399482-YAKIHONNES3.jpg
The proposal to reduce WBTC vault debt ceilings to zero was seen as extreme by some, as it would be inconsistent with how Maker treats other supported centralized assets. Rival tokenized Bitcoin issuers, such as ckBTC, tBTC, and dlcBTC, were eager to pitch their products as potential replacements for WBTC
One of the key issues that led to this suspension is the high volume of liquidations and the resulting negative system surplus. During a specific time period, at least one Keeper was able to successfully bid 0 DAI for Vaults liquidated ETH, contributing to the accumulation of multi-million dollar debt
