MarkDAO, the DAI stablecoin issuer, passed a governance proposal to remove renBTC from being used as collateral and reduce exposure to what it described as a risky asset.

The contagion effect of the FTX and its research collapse have compelled a lot of crypto projects to cut ties and simultaneously carry out different face-saving measures. The current action of MarkDAO is one such measure.

Recall that the RenBTC is a wrapped bitcoin asset developed by the Alameda Research-backed project called Ren Protocol.

To mint a Dai stablecoin in MarkDAO, users must first provide a proportional amount of cryptocurrency collateral. One such collateral is the RenBTC tokens which can be stored in vaults