Deniz 
Approved was the proposal from MakerDAO contributors to stop new borrowing against BitGo’s tokenized bitcoin, sometimes referred to as wrapped bitcoin as collateral.
MakerDAO authorized an executive vote lowering the WBTC debt limit to zero and forbiting any new loans guaranteed by WBTC collateral. Furthermore, set to 0% was WBTC’s loan-to-value (LTV) ratio. MakerDAO notably enables users to mint the DAI stablecoin as an overdollaterized loan.
Since the liquidation level stays the same, these changes have no effect on current loans guaranteed by WBTC.
Following Bitgo, the developer and guardian of WBTC, who revealed a collaboration with BiT Global (connected to Tron founder Justin Sun) to manage WBTC custody, moving custody from the U.S. to other jurisdictions, including Hong Kong and Singapore, the risk parameter modification affecting WBTC came after.
Inspired by Sun’s dubious reputation and the possible centralization of control, this development caused security issues among MakerDAO members, which led to the modifications. BitGo CEO Mike Belshe underlined in defense the company’s dedication to security as well as the legal control of BitGo and BiT Global.
You can also freely share your thoughts and comments about the topic in the comment section. Additionally, don’t forget to follow us on our Telegram, YouTube, and Twitter channels for the latest news and updates.