Maker Governance Approves KNC And ZRX As Collateral Types In Maker Protocol

Steve Anderrson
Steve Anderson is an Australian crypto enthusiast. He is a specialist in management and trading for over 5 years. Steve has worked as a crypto trader, he loves learning about decentralisation, understanding the true potential of the blockchain. Join the official channel of thecoinrepublic, For the latest news updates: https://t.me/thecoinrepublic
  • ZRX(Ox) and KNC(Kyber Network) have been accepted by MKR holders as new collateral assets for Maker Protocol.
  • ZRX (Ox) and KNC (Kyber Network) can be used to create Maker Vaults to generate Dai.

Following an executive vote that was conducted today, ZRX (Ox) and KNC (Kyber Network) have been accepted by MKR holders as new collateral assets for Maker Protocol. ZRX (Ox) and KNC (Kyber Network) can be used to create Maker Vaults to generate Dai. This decision shall bring in more options for users and allow better flexibility and convenience. The additional assets will primarily help users generate Dai.

Risk Factors of ZRX and KNC

The Maker Governance Forum used by the Maker Community, as a platform, to discuss the benefits of adding ZRX and KNC along with the following risk factors, before the vote:

ZRX Risk factors:

  • The risk premium to be 4%
  • The liquidation ratio of 175%
  • A debt ceiling set at  5 million
  • The lot size at the auction to be of 100,000
  • A bid increment of minimum 3%
  • The duration of the bid to be 6 hours
  • The maximum duration of the auction to be 6 hours
  • The Liquidation penalty to be set at 13% 
  • The dust to be 20 Dai

KNC Risk factors::

  • The risk premium to be 4%
  • The liquidation ratio of 175%
  • A debt ceiling set at  5 million
  • The lot size at the auction to be of 50,000
  • A bid increment of minimum 3%
  • The duration of the bid to be 6 hours
  • The maximum duration of the auction to be 6 hours
  • The Liquidation penalty to be set at 13% 
  • The dust to be 20 Dai

The benefit of Addition Assets

Most tokenizable assets can be added into the efficiently flexible system of the Maker Protocol, as collateral. However, appropriate risk factors and approval by the Maker Governance are pre-requisites for addition to the system as collateral.

The addition of ZRX and KNC into collateral types list is an intriguing step taken by the MKR holders and Maker Governance as users will now be able to connect to Oasis Borrow through their wallets and lock the type of their preference in Maker Vault, resulting in the generation of Dai. 

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