Coinspeaker
MakerDAO Halts New wBTC-Backed Loans amid Security Concerns
The governance of MakerDAO has made a bold decision to modify the terms of using Wrapped Bitcoin (wBTC) as security for new loans. The most recent move, which stops any further borrowing using wBTC, is a reflection of growing worries around the management and security of this virtual asset.
A recent executive vote by the MakerDAO community essentially lowers the wBTC debt ceiling to 0 DAI. This implies that wBTC can not be used as collateral for any further loans. Furthermore, wBTC’s loan-to-value (LTV) ratio has been changed to 0%, therefore ending its usage in obtaining new loans.
However, as the liquidation threshold is unchanged, these modifications won’t affect currently outstanding wBTC-backed loans.
Reason Behind MakerDAO Governance Decision on wBTC
Notably, the adjustments being made by MakerDAO appear to be based on a risk analysis they recently carried out. It follows a recent announcemen
We współpracy z: https://www.coinspeaker.com/makerdao-halts-wbtc-backed-loans/
