MakerDAO to offload wrapped Bitcoin exposure in Ren Protocol

MakerDao, the leading DeFi platform with more than $8B in overall worth locked, prepares to offboard the RenBTC vaults. The company cautions RenBTC vault users to close all their positions prior to December 7th to prevent liquidation.

MakerDAO guvs all voted vo close RenBTC Vault

The fall of the FTX exchange, which was the 3rd biggest CEX worldwide, is triggering a great deal of distress to the crypto market, exposing lots of platforms to liquidation. To lessen its threat direct exposure, the MakerDAO governing board has actually enacted unison to off-board the RenBTC vault from its platform.

The RenBTC vaults are powered by Alameda, a twin company of FTX- owned by Sam Bankman-Fried. It is utilized as security on the MakerDAO platform to mint DAI (MakerDAO’s native token). Considering that the crash of FTX, the MakerDAO’s Threat Core System has actually been taking preventive actions to lessen the possible future issue of the crash.

At first, the platform decreased the financial obligation limitation for RenBTC vault users from $10 million to absolutely no. And now, the governing board has actually chosen with a consentaneous survey vote to disable the RenBTC vault coming from Alameda from the platform. For this reason, MakerDAO can no longer mint DAI with the vault any longer.

In addition, MakerDAO discussed in its off-boarding proposition that it disabled the minting power of RenBTC as the token may de-peg. Likewise, it declared that it took timely action to prevent and reduce any future issues that might occur due to FTX’s collapse.

MakerDAO prompts RenBTC users to close positions quickly

Moreover, the DeFi platform has actually encouraged all RenBTC vault users to close their position prior to December 7th to prevent liquidation. That exact same day, the platform’s guvs would enact the result of the executive vote they earlier performed.

At first, the board authorized an off-boarding criterion that necessitated the closure of RenBTC positions that are listed below the 5000% liquidation ratio. This indicates that as soon as the executives enact the vote outcome on December 7, all RenBTC positions listed below 500% would be liquidated.

For this reason, the platform encouraged all RenBTC vault users to reward their DAI financial obligations and close their vaults prior to the date to prevent being liquidated.

In its tweet, MakerDAO ensured its users that the off-boarding of RenBTC did not posture any threat or hazard to its monetary stability. It included that it is dedicated to working out extensive threat management to guarantee it continues its aim to provide quality services to its consumers.