MakerDAO passes vote to close Alameda-linked renBTC as stablecoin collateral

Quick Take

  • MakerDAO passed a governance vote to remove renBTC from stablecoin collateral vaults.
  • This comes after the Ren team said the existing Ren 1.0 protocol will be shuttered.
  • The Ren project was funded by the beleaguered trading firm Alameda Research.

Dai stablecoin issuer MakerDAO passed a governance proposal to remove renBTC from being used as collateral and reduce exposure to what’s deemed a risky asset by the DAO. RenBTC is a wrapped bitcoin asset developed by the Alameda Research-backed project Ren Protocol.

MakerDAO lets users mint the dai stablecoin by depositing excess cryptocurrency collateral. In December 2020, MakerDAO allowed users to deposit renBTC tokens in specialized "RENBTC-A" vaults and mint dai. 

Earlier this year, Alameda Research, the sister trading firm of FTX exchange, acquired the Ren project and funded its development each quarter. After Alameda and the FTX exchange filed for Chapter 11 bankruptcy protection, the Ren team said