[TEMP CHECK] Add KNC to Ethereum Aave V3

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The discussion focused on a proposal to add KNC (Kyber Network Crystal) as a supply and borrow collateral asset on Aave v3 Ethereum Market, with the proposal now at the voting stage. Key recommendations include a supply cap of 5.5M KNC, a borrow cap of 800K KNC, and an initial debt ceiling of $2.7M for KNC.

The discussion revolved around the proposal by Maxax to add KNC (Kyber Network Crystal) to Aave v3 on Ethereum1. KyberSwap, Kyber Network's flagship product, is a multi-chain DEX aggregator and concentrated liquidity platform. The proposal aims to list the KNC token as a supply and borrow collateral asset on Isolation Mode on Aave V3 Ethereum Market. KNC is Kyber’s utility and governance token, and an important part of KyberSwap operations. KNC holders can stake KNC to vote on proposals to improve KyberSwap and receive rewards from fees collected through trading on KyberSwap and other ecosystem collaborations1.

KyberSwap has over 60 DeFi/GameFi Dapp integrations, $21 Billion+ lifetime trading volume, and a total TVL of $60M+ on all its pools. KNC holders could borrow stablecoins like GHO against their collateral token, and users could lend or borrow KNC for leverage trading. KNC price feeds are supported by Chainlink on multiple platforms, and KNC has over 16,000 token holders on Ethereum1.

The proposal was escalated to the Snapshot stage, with the vote starting the following day. Gauntlet supported the proposed parameters for KNC on Ethereum Aave v3 and provided additional recommendations, including a supply cap of 5.5M KNC and a borrow cap of 800K KNC. ChaosLabs conducted an analysis following the successful Snapshot and recommended an initial debt ceiling of $2.7M for KNC, among other parameters. They also proposed a supply cap of 600K KNC based on current liquidity levels and a 10% liquidation bonus7.

In conclusion, the discussion was centered around the integration of KNC into the Aave V3 Ethereum Market. The proposal received support from various community members and was escalated to the voting stage. The final decision will be based on the community vote.

Posted 3 months ago

Last reply 2 months ago

Summary updated 2 months ago

Last updated 08/12 04:39