Wrapped Bitcoin supplied on Aave hits record high despite backing fears 

Wrapped Bitcoin (WBTC) supplied connected decentralized lending level Aave deed an all-time precocious contempt anxieties astir nan Bitcoin (BTC) wrapper’s backing, according to information from Dune Analytics.

Aave’s WBTC proviso connected nan Ethereum web collapsed 37,000 successful September, aliases much than $2 cardinal astatine existent prices, according to Dune.

The record-breaking full worth locked (TVL) connected Aave follows a activity of skepticism among cryptocurrency unit investors astir nan information of nan underlying spot Bitcoin backing WBTC.

On Aug. 9, BitGo — nan cryptocurrency custodian holding WBTC’s Bitcoin backing — agreed to assistance Hong Kong-based crypto speech BiT Global partial power of nan multisignature wallet that holds nan custodied Bitcoin.

WBTC connected Aave. Source: Dune Analytics

Related: 21.co Bitcoin wrapper to adhd Chainlink impervious of reserve

“This announcement has proven arguable owed to nan engagement of Justin Sun, pinch galore successful nan ecosystem expressing interest complete his ‘affiliated projects show worrying signs of imaginable misappropriation’ of collateral,” Threshold, a rival Bitcoin wrapper, said successful August. 

Sky, a decentralized finance (DeFi) protocol formerly known arsenic Maker, opted to remove WBTC from its level connected Sept. 19.

Then, connected Sept. 24, nan DeFi protocol reconsidered its scheme to offboard WBTC aft receiving a caller proposal from cardinal advisor BA Labs. 

BA Labs recommended pausing nan offboarding scheme pursuing a lengthy conversation pinch BitGo co-founder Mike Belshe connected Sky’s governance forum. 

Among different assurances, BitGo committed to providing astatine slightest 60 days of nationalist written announcement earlier immoderate changes to entities controlling WBTC keys.

On Sept. 23, 21.co, nan genitor institution of cryptocurrency plus head 21Shares, announced plans to add Chainlink’s impervious of reserve to 21BTC to reside concerns related to nan Bitcoin wrapper’s backing. 

Coinbase main ineligible serviceman Paul Grewal responded to related concerns surrounding nan personification position of work for Coinbase’s recently launched cbBTC Wrapped Bitcoin product. He confirmed that Coinbase would reimburse clients successful nan arena nan speech loses nan underlying Bitcoin. 

According to DeFiLlama, WBTC is still nan astir celebrated Bitcoin wrapper, pinch upwards of $9 cardinal successful TVL. 

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