Despite supporting fears, wrapped bitcoins offered by Aave are at a record high.
Wrapped Bitcoin (WBTC) decentralized lending platform Aave has reached an all-time high despite concerns surrounding Bitcoin (BTC) wrap support, according to data from Dunn Analytics.
According to Dune, Aave's WBTC supply on the Ethereum network has broken 37,000, or more than $2 billion at current prices.
The total value locked (TVL) recorded on Aave follows a wave of skepticism among cryptocurrency retail investors about the safety of the underlying Bitcoin support of WBTC.
In the year On Aug. 9, BitGo — the custodian of WBTC's Bitcoin backing — agreed to give partial control to Hong Kong-based Bitcoin exchange BitGlobal, a multi-signature wallet that holds bitcoins.
WBTC on Aave. Source: Dune Analytics
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“This announcement has proven controversial due to the involvement of Justin Sun, with many in the ecosystem showing signs of concern about the possible abuse of securities with the expression of concern about his related projects,” Threshold, a rival bitcoin wrapper, said in August.
The decentralized finance (DeFi) protocol Sky, formerly known as Maker, chose to remove WBTC from its platform on September 19.
Then, on September 24, Diffie's protocol reconsidered its plan to withdraw from the letter after receiving new advice from key adviser BA Labs on WBTC.
After a lengthy discussion with BitGo co-founder Mike Belshey on Skye's management forum, BA Labs advised it to put its onboarding plan on hold.
Among other assurances, BitGo has committed to providing the public with at least 60 days written notice before any changes to the entities controlling WBTC keys.
On September 23, 21.co, the parent company of cryptocurrency asset manager 21Shares, announced plans to add Chainlink's proof of reserve to 21BTC to address concerns related to Bitcoin's wrap support.
Coinbase Chief Legal Officer Paul Grewal has responded to concerns surrounding the user terms of service for Coinbase's newly launched cbBTC bundled Bitcoin product. Coinbase has confirmed that it will refund customers if the exchange loses its original Bitcoin.
According to DeFillama, WBTC is still the most popular Bitcoin wallet, with more than $9 billion in TVL.
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