title: [ARFC] KNC onboarding on AaveV3 Ethereum market
author: Alice Rozengarden @Alice - Aave-chan initiative
date: 2023-10-02
Summary:
This ARFC is proposing to add the KNC token from Kyberswap to the AaveV3 Ethereum market in isolation mode.
Motivation:
KyberSwap is a multi-chain DEX aggregator + concentrated liquidity platform, that aims to offer superior rates for traders and capital-efficient returns for liquidity providers.
As one of the oldest and most popular DEX aggregators with an average of 500K web visitors per month. KyberSwap has already been deployed on 14 chains, including Ethereum, Polygon, Arbitrum, Optimism, Avalanche, and Base. Total trading volume has crossed $21B+ and the current total value locked (TVL) on all chains is $60M+.
KNC is Kyber’s utility and governance token and an important part of KyberSwap operations. KNC holders can stake KNC to vote on proposals to improve KyberSwap. In return, KNC voters receive rewards from fees collected through trading on KyberSwap and other ecosystem collaborations. As more trades are executed and new protocols are added, more rewards are generated.
Adding support for KNC on Ethereum V3 in isolated mode would allow KNC holders to borrow stablecoins by leveraging their KNC position, attracting new KNC deposits, which would add a new revenue stream for Aave while limiting the exposure.
Specification:
We propose the following parameters according to Gauntlet and ChaosLabs's recommendations:
| Parameter | Value |
|---|---|
| Isolation Mode | Yes |
| Borrowable | Yes |
| Collateral Enabled | Yes |
| Supply Cap (KNC) | 1.200.000 |
| Borrow Cap (KNC) | 650,000 |
| Debt Ceiling | 1M$ |
| LTV | 35.00% |
| LT | 40.00% |
| Liquidation Bonus | 10.00% |
| Liquidation protocol Fee | 10.00% |
| Variable Base | 0.00% |
| Variable Slope1 | 9.00% |
| Variable Slope2 | 300.00% |
| Uoptimal | 45.00% |
| Reserve Factor | 20.00% |
| Stable Borrowing | Disabled |
| Stable Slope1 | 13.00% |
| Stable Slope2 | 300.00% |
| Base Stable Rate Offset | 3.00% |
| Stable Rate Excess Offset | 5.00% |
| Optimal Stable To Total Debt Ratio | 20.00% |
| Flahloanable | Yes |
| Siloed Borrowing | No |
| Borrowed in Isolation | No |
- Ticker: KNC
- Contract Address: 0xdeFA4e8a7bcBA345F687a2f1456F5Edd9CE97202
- Chainlink Oracle: 0xf8ff43e991a81e6ec886a3d281a2c6cc19ae70fc
Disclaimer:
This proposal is powered by Skyward.
The author isn’t compensated by KyberSwap for this ARFC.
Next step:
The following steps are as follow:
- gather community feedback and @Gauntlet recommendations on this ARFC.
- Publish a snapshot of the risk providers' recommendations.
- If said snapshot is successful, escalate to an AIP.
Copyright:
Copyright and related rights waived via CC0.
Off-Chain Vote
Timeline
Oct 02, 2023Proposal created
Oct 03, 2023Proposal vote started
Oct 06, 2023Proposal vote ended
Dec 10, 2025Proposal updated