bullish

Wrapped Bitcoin

DeFi

Bitcoin

Impact

<ul>
  
 <li>Justin Sun confirms no changes in WBTC custody, with BitGo and BitGlobal maintaining control and real-time audits.</li>   
 <li>MakerDAO may reduce WBTC exposure amid concerns over Justin Sun's involvement and BitGo's custodial changes.</li>   
 <li>WBTC's price surged 1.02% as MakerDAO reviews its risk management strategy in response to Sun's involvement.</li> 
</ul>   
<p>Justin Sun clarified that the custodial protocols are unaltered in response to questions raised recently about his involvement with <a href="https://wbtc.network/" target="_blank" rel="noreferrer noopener nofollow">Wrapped Bitcoin</a> (WBTC). Sun clarified that the audits for WBTC remain real-time, accessible via the WBTC network, and fully managed by custodians BitGlobal and <a href="https://www.bitgo.com/resources/blog-article-page-launching-wrapped-bitcoin-(WBTC)-on-Base/">BitGo</a>. He made it clear that his involvement is entirely strategic and that he has no control over WBTC finances.</p>   
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   https://twitter.com/justinsuntron/status/1822370692014485937 
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<h2 class="wp-block-heading" id="h-makerdao-s-risk-mitigation-strategies"><strong>MakerDAO's Risk Mitigation Strategies</strong></h2>   
<p>However, MakerDAO is considering several measures to lower the risks related to WBTC custody. This review follows BitGo's announcement of transferring ownership of WBTC operations to a new joint venture with BitGlobal. This shift will see custody operations move from the U.S. to jurisdictions like Hong Kong and Singapore.</p>   
<p>The MakerDAO community's concern arises from Sun's previous associations with other <a href="https://cryptonewsland.com/anticipating-the-bull-market-previous-patterns-reveal-promising-crypto-projects/" target="_blank" rel="noreferrer noopener">crypto projects</a>, including TUSD and Huobi's USDT reserves, which faced transparency and operational challenges.&nbsp;</p>   
<p>In light of this, MakerDAO is exploring ways to protect its platform and users from potential risks. Consequently, the on-chain and off-chain governance actions reflect a cautious approach to this transition.</p>   
<h2 class="wp-block-heading" id="h-impact-on-wbtc-s-market-performance"><strong>Impact on WBTC's Market Performance</strong></h2>   
<p>Moreover, there is a proposal to significantly reduce the share of WBTC in the firm's vaults. This could involve setting debt ceilings on various WBTC collateral integrations, such as WBTC-A, B, and C, to zero until the custodial framework is better understood. Additionally, the firm is considering halting product borrowing through SparkLend, a service associated with the company, and reducing the loan-to-value (LTV) ratio to 0%.</p>   
<p>These steps underscore MakerDAO's commitment to risk management in<a href="https://cryptonewsland.com/revolutionizing-finance-zeebu-protocols-path-to-staking-liquidity-and-decentralized-settlements/" target="_blank" rel="noreferrer noopener"> decentralized finance </a>(DeFi). However, final decisions are expected during the upcoming executive vote next week. The outcome of this vote could impact the operational landscape of WBTC within the DeFi ecosystem.</p>   
<p>WBTC has seen a bullish bounce, with the last day seeing price swings between $61,153.79 and $60,176.32. At the time of writing, WBTC was up 1.02% from its support level, trading at <a href="https://coinmarketcap.com/currencies/wrapped-bitcoin/" target="_blank" rel="noreferrer noopener nofollow">$61,026.86</a>. This price movement reflects market sentiment as the community closely watches developments in WBTC custody and governance.</p> 
<p>The post <a href="https://cryptonewsland.com/justin-sun-clarifies-role-in-wbtc-custody-amid-makerdaos-risk-review/">Justin Sun Clarifies Role in WBTC Custody Amid MakerDAO’s Risk Review</a> appeared first on <a href="https://cryptonewsland.com">Crypto News Land</a>.</p>

Justin Sun Clarifies Role in WBTC Custody Amid MakerDAO’s Risk Review

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