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WBTC DAO Switches To A New Multisig Smart Contract To Replace FTX

The community that oversees the Wrapped Bitcoin (WBTC) project, WBTC DAO, is switching to a new multisig smart contract to replace signers who are no longer present.

According to a pull request Victor Tran, CEO of Kyber Network, made on the project’s GitHub, this migration is being carried out. Tran said the transition to this new multisig is being coordinated by Kyber and WBTC custodian BitGo.

The WBTC contracts are subject to change at the discretion of the signers. These changes may involve choosing a new custodian for the token as well as updates or revisions to the WBTC contracts.

There will be 13 signers in the new WBTC DAO multisig, with eight required to reach a quorum on each issue. The last multisig, which was created more than three years ago, had 18 signers. At the time, any action required the agreement of 11 signers.

The new group of signers will be in charge of approving transactions and, if required, altering the wrapped token’s contract.

Seven of the previous group’s members are included in the new multisig list, including Kyber and BitGo, Layer 2 exchange Loopring, and DeFi lender Compound. Among the six new entries are the DeFi liquidity platform Balancer and the Oracle protocol Chainlink. Members of the multisig that included companies like FTX, Airswap, and MakerDAO have been dropped.

Tran pointed out that a number of the original signers who were removed from the list had either stopped signing or had misplaced their keys. If there are not enough signers to reach an agreement, this condition might result in a reduced availability of the multisig.

After the FTX collapse, WBTC started losing its peg to Bitcoin, and it is currently 0.989% below that peg.

WBTC/BTC chart. Source: Coincu

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Harold

Coincu News

Harold

With a passion for untangling the complexities of the financial world, I've spent over four years in financial journalism, covering everything from traditional equities to the cutting edge of venture capital. "The financial markets are a fascinating puzzle," I often say, "and I love helping people make sense of them." That's what drives me to bring clear and insightful financial journalism to the readers of Coincu.