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MakerDAO now supports KNC and ZRX as collateral, with six other coin proposals still under voting.

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MakerDAO now supports KNC and ZRX as collateral, with six other coin proposals still under voting.

Yesterday, the MakerDAO community approved a governance proposal to officially add KNC and ZRX as collateral for the stablecoin Dai. In addition, there are currently six collateral addition proposals for other tokens in progress, with voting expected to conclude in eight days. Based on the current vote count, three of the tokens are unlikely to be approved.

Adding KNC and ZRX as Collateral

According to the latest update from MakerDAO on their Blog today, the community-driven proposal to add new collateral types has been approved yesterday through the "Add KNC and ZRX as collateral types for stablecoin Dai" governance proposal, and has been officially launched today. Users can now connect their wallets to Oasis Borrow and lock in KNC and ZRX to generate Dai.

Source: MakerDAO

The newly supported tokens are both tokens of decentralized finance (DeFi) protocols. KNC is the ERC20 token of the KyberNetwork protocol, a blockchain protocol that operates as an on-chain protocol for instant cryptocurrency trading and conversion services through liquidity pools; while ZRX is the ERC20 token of the 0x protocol, a decentralized exchange protocol for off-chain matching and on-chain settlement of Ethereum assets. The risk parameters for these two tokens are as follows:

Source: MakerDAO

Protocol Parameter Changes

On the other hand, the governance vote also increased the Dai savings rate and the base rate to 0.25%, affecting the stability fees for various collateral types as follows:

  • ETH-A: 0.25%
  • BAT-A: 0.25%
  • USDC-A: 1%
  • USDC-B: 50.25%
  • WBTC-A: 1.25%
  • TUSD-A: 0.25%

It is worth noting that the current stability fee calculation in the protocol is "Base Rate + Risk Premium for different collateral types".

Additional Six Tokens Under Voting

In order to increase the adoption of stablecoin Dai and market liquidity, the community has been actively adding more collateral types this year. Last week, the community also initiated a governance proposal to add new collaterals, including ENJ, LEND, LINK, MATIC, PAXG, and WKT. These tokens' proposals are currently ongoing, with 8 days remaining until the voting deadline. Apart from LINK, WKT, and PAXG where the majority of votes are in favor, the proposals for the other three tokens have over 70% opposing votes.