Sky Adviser Proposes Zero Debt Ceilings for Five ETH and WSTETH Vault Types

BA Labs, a risk adviser to Sky, has proposed setting the borrowing limits to zero for five vault types to reduce potential security risks. The proposal covers ETH-A, ETH-B, ETH-C, WSTETH-A and WSTETH-B.

Together, the five types have 771 open positions and about 376 million USDS in outstanding debt. That amount has declined about 25% over the past year.

If approved, the change would prevent borrowers from taking out additional loans through those vault types. Existing users could still repay debt, add collateral or withdraw collateral, and their positions would remain subject to the original liquidation rules.