DeFi Governance Roundup: Strengthening Protocol Features and Community Building

The proposal sought to list Kyber Network’s new native KNC token for borrowing and lending and as a collateral asset on both Aave v2 and v3 after the delisting of the old KNCL token that was previously on Aave v1. As the utility and governance token of Kyber Network, KNC is an essential component in the operations of KyberSwap, the network’s decentralized exchange platform. Users can stake KNC to vote for governance proposals as well as accrue fees from the trading activities on KyberSwap. 

At the time of writing, KyberSwap has a total value locked (TVL) of approximately $48 million. Recognizing KNC as a liquid asset with a significant community of token holders, the listing of the token opens up capital efficiency opportunities in DeFi for token holders without having to sell their tokens. On the other hand, Aave, as a protocol, benefits from the listing through an expansion of its supported assets and widening its reach to the community of users that can benefit from its platform. Nonetheless, with the old KNCL token previously being a supported asset on Aave v1, the listing of the new KNC token on Aave v2 and v3 should not come as any surprise since Kyber Network is an established name in the crypto space.