On September 25, CoinDesk reported that Sky (formerly MakerDAO) consultant BA Labs, after learning more about WBTC’s operating model and management, re-proposed to suspend WBTC’s delisting process indefinitely. This latest development indicates that Sky may suspend the WBTC asset divestiture plan originally scheduled to start on October 3.

The report quoted BA Labs as saying, "Although we still have concerns about BitGlobal being a signatory of WBTC, we believe that the severity of the matter has been greatly reduced and there is no need to delist it immediately." Ultimately, BA Labs recommended that the delisting process of WBTC be suspended indefinitely.

In addition, BA Labs said in a statement on Tuesday that “after learning more details, we have a clearer understanding of WBTC’s current operating model and key management parties, and therefore feel more at ease.”

BA Labs believes that WBTC’s exposure as a collateral asset has “decreased slightly, accounting for approximately $170 million of the current total borrowing amount,” and therefore the associated risks have been reduced to a “more acceptable range.”

According to previous media reports, on August 22, BA Labs proposed to gradually reduce the LT (liquidation threshold) parameter of WBTC from 75% to 0%, triggering a discussion on Sky's divestiture of WBTC assets from the platform. On September 25, BA Labs proposed to adjust the relevant parameters from 75% to 70%, and to adjust the supply and borrowing limits to varying degrees, which means that the previous plan to divest WBTC was almost reversed. If the new proposal is passed, there will only be a symbolic 5% change in the end.

BA Labs also specifically noted that it no longer recommends implementing any further parameter changes, and future parameter change recommendations (if any) will depend on market conditions and WBTC’s fundamentals.

CoinDesk mentioned in the report that due to the influence of Sky's previous plan to divest WBTC, industry institutions have recently launched competing products, including dlcBTC, tBTC launched by Threshold, and FBTC supported by Mantle Network. On September 12, Coinbase, the largest cryptocurrency exchange in the United States, and its own custody platform officially launched its wrapped Bitcoin cbBTC.

Among them, cbBTC became the third largest packaged Bitcoin within a week, but its actual market share was only 1.5%, far behind WBTC's 66% market share.

At the same time, cbBTC has been questioned by many industry insiders for its lack of transparency and failure to provide proof of reserve (PoR). Coinbase also refused to disclose cbBTC's reserve address in the Bitcoin network, making it impossible for users to remotely verify whether cbBTC's Bitcoin reserves actually exist on the blockchain.

Authoritative research platform CryptoQuant revealed in an analysis report that “some critics point out that the administrator of the cbBTC smart contract can blacklist certain addresses and prohibit these addresses from transferring, minting or destroying cbBTC, which means that cbBTC users may have their assets frozen.”

Following Sky, there have been rumors recently that the DeFi platform AAVE has proposed to divest WBTC. On the 20th, Aave co-founder Stani Kulechov responded to the false rumors, saying, "This is incorrect. Aave did not eliminate WBTC. This is a proposal by one of the risk providers to restrict WBTC. The proposal does not mean an exit decision, and this particular proposal is not about exit."

After BA Labs re-proposed its proposal, it is difficult for DeFi platforms to challenge WBTC, and WBTC will continue to maintain its dominant position in the track. According to a report by CryptoQuant, earlier this month, WBTC's custodian BitGo began to adopt LayerZero's Omnichain Fungible Token (OFT) standard on Avalanche and BNB Chain, enabling WBTC to be used across multiple blockchain networks.