xKNC on Aave & KNC vaults on Yearn

I started a discussion on yearn governance for KNC vaults. And a suggestion came up to accept xKNC as collateral on Aave so that axKNC can be further used to yield farm and increase the returns for KNC holders. This would help KNC holders get rewards from staking as well as yield farming. The rewards from staking are quite less right now.

Would it be a good idea to onboard xKNC as collateral on Aave?

Link to ygov discussion- https://gov.yearn.finance/t/proposal-add-kyber-network-crystal-knc-to-yvaults/2612

Thoughts? @stani @MarcZeller

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I’m a big fan of KNC which means naturally I support their recent staking upgrade and various things around it like xKNCa and xKNCb - however my biggest questions for a proposal such as this would be:

  1. Does this impose risk for Kyber’s governance? Since there are two xKNC tokens, one of each which will always vote for the same thing in the governance - and if it does cause a risk to their governance, should our governance care?

  2. What are the stats on xKNC? I know staking is relatively new, as well as xTokens, so I am curious if there are any measurable stats on it such as amount of holders, total liquidity, etc. - is there a place better than just Etherscan?

  3. Is it safe enough? xKNC only launched 1 month ago, their xSNX token already faced an exploit, perhaps its too soon to consider adding it - or maybe this doesn’t matter.

Those are just some questions off of the top of my head when thinking about adding xKNC.

I agree.

I think the best solution for KNC vaults is to deposit KNC to Aave and borrow stablecoins to yieldfarm. In that case, it requires no further action from Aave as KNC is already integrated.

But do you think Kyber team/governance would add yKNC to be able to participate in KyberDAO governance? That would solve everything.

Adding yKNC to be able to participate in Kyber’s governance would definitely be awesome, but a question better left for their team. I’d reach out to them directly with the suggestion, I’m not too sure they browse Aave’s governance forum but I’m sure they’d be open to discuss :smile:

Thanks for your inputs :slight_smile:

Btw I also put up a proposal for adding KNC vaults on Yearn governance. Some support from Kyber team on that would also be cool :)

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