Originally published on: September 26, 2024
The supply of Wrapped Bitcoin on the decentralized lending platform Aave has reached an all-time high, surpassing 37,000 in September, totaling more than $2 billion based on current prices, as reported by Dune Analytics.
Although concerns have been raised regarding the safety of the underlying Bitcoin supporting WBTC, the record-breaking Total Value Locked (TVL) on Aave continues to soar.
In a move that sparked uncertainty among cryptocurrency retail investors, BitGo, the custodian responsible for holding WBTC’s Bitcoin backing, granted partial control of the multisignature wallet to Hong Kong-based crypto exchange BiT Global on August 9.
Threshold, a competing Bitcoin wrapper, expressed concerns about the involvement of Justin Sun and questioned the potential misappropriation of collateral associated with his affiliated projects.
Sky, a decentralized finance protocol formerly known as Maker, initially decided to remove WBTC from its platform on September 19. However, the plan was put on hold after BA Labs, a key advisor, recommended pausing the offboarding process following discussions with BitGo’s co-founder, Mike Belshe.
To address concerns about WBTC’s backing, 21.co announced plans to incorporate Chainlink’s proof of reserve into 21BTC on September 23.
Meanwhile, Coinbase assured clients that they would be reimbursed if the exchange loses the underlying Bitcoin related to its cbBTC Wrapped Bitcoin product user terms of service.
Despite the apprehensions surrounding WBTC, DefiLlama reports that it remains the most popular Bitcoin wrapper with over $9 billion in TVL.
Discover the latest developments in the world of Wrapped Bitcoin and stay informed about the evolving landscape of decentralized finance.
