Proposal to enable collateral support to KNC on dForce Lending

Proposal

It's proposed to add collateral support to KNC on dForce Lending.

About KyberSwap

KyberSwap.com (Kyber Network’s flagship product) is a multi-chain DEX aggregator + liquidity platform, which aims to offer the best rates for traders and the best returns for liquidity providers with concentrated liquidity.

Kyber launched on Ethereum in February 2018 and is a pioneer in the DeFi space, developing one of the earliest decentralized exchange protocols (DEX) with Vitalik Buterin as an advisor. The team has continued to innovate; spearheading the launch of WBTC (Wrapped Bitcoin) - the most popular ERC20 version of Bitcoin today (and a collateral asset on dForce), as well as developing amplified liquidity pools on KyberSwap that offers capital efficiency for any token pair. Kyber was the most used DeFi protocol in 2019 according to Binance Research and also part of the pioneer batch of Alliance DAO/DeFi Alliance mentors and Asia DeFi Network. Today, KyberSwap is one of the most popular DEX aggregators and liquidity platforms on Ethereum, Arbitrum, Optimism, BNB Chain, Polygon, and other chains.

About KNC

KNC is Kyber’s utility and governance token, and is an important part of KyberSwap operations. KNC holders can stake KNC to vote on KyberDAO proposals. Important proposals include improvements to KyberSwap, determining the various incentive mechanisms for liquidity providers, and capturing value created by new innovations. In return, KNC voters receive rewards from fees collected through trading on KyberSwap and other benefits from ecosystem collaborations. As more trades are executed and new protocols added, more rewards are generated.

Risk assessment for KNC:

• Smart contract risk: 65
• Financial risk: 67
• Counterparty risk: 70
• Overall score: 68

Proposed parameter for KNC:

• Collateral support: Yes
• LTV: 70%
• Supply cap: 1,000,000 KNC
• Borrow cap: 1,000,000 KNC
• Borrow factor: 100
• Reserve factor: 15%
• Liquidation penalty: 7%