MakerDAO Considers Restricting DAI Minting Against WBTC Amid Restructure Plans
Ruholamin Haqshanas is a contributing crypto writer for CryptoNews. He is a crypto and finance journalist with over four years of experience. Ruholamin has been featured in several high-profile crypto...
MakerDAO is evaluating whether to halt the minting of its DAI stablecoin using Wrapped Bitcoin (WBTC) as collateral.
The discussion has emerged following an announcement from BitGo, the team responsible for WBTC, regarding a restructuring that would transfer control of WBTC to a new joint venture that includes BiT Global and Justin Sun’s Tron ecosystem.
On August 10, BA Labs, a Web3 risk and analytics group, proposed on MakerDAO’s governance forum to reduce WBTC vault debt ceilings to zero and disable WBTC borrowing on SparkLend, a money market protocol.
BA Labs highlighted that while these measures would stop new borrowing against WBTC, they wouldn’t immediately affect users with existing loans or DAI already minted with WBTC as collateral.
The main concern driving this proposal is the involvement of Justin Sun, the founder of Tron, in the new joint venture.
BA Labs pointed to previous issues with TrueUSD, a stablecoin linked to Sun, which they claim faced operational and transparency problems after being sold to a Sun-affiliated group.
These issues included the suspension of real-time proof of reserves, price volatility, and disrupted redemption services.
BA Labs argues that Sun’s involvement in the new WBTC management structure poses a significant risk to MakerDAO.
BA Labs suggested that MakerDAO and Spark should consider fully offboarding WBTC unless BitGo and its partners can convincingly demonstrate that the current collateral arrangements remain safe.
Currently, around 10% of DAI’s 5.2 billion token supply is backed by
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