- Protocol tokens from Kyber Network and 0x will be accepted as collateral assets on Maker’s loan platform.
- The two tokens have been added to the platform with a higher liquidation ratio than WBTC or USDC.
- Kyber also announced that the Katalyst protocol upgrade would be released on July 7, 2020.
After a successful Executive Vote, protocol tokens from token swap platforms Kyber Network and 0x will be accepted as collateral assets on Maker’s loan platform. This is a recognition of the increasing value of DeFi protocol tokens and a testament to the Maker platform’s versatility.
Kyber’s KNC and 0x’s ZRX have been added to the platform with a higher liquidation ratio than other collateral options like Wrapped Bitcoin (WBTC) or Circle’s stablecoin USDC. The difference accounts for the relatively bigger risk of drawing loans against the lesser-known and unpegged digital assets, whose values are likely to be more volatile.
Decentralized exchange (DEX) tokens like Kyber’s KNC have been offering attractive year-to-date returns compared to other popular assets like BTC or ETH. Both trading volume and the number of active traders on decentralized exchanges have been moving upwards since 2019, with the highest surge in activity occurring in March 2020 during the cryptocurrency crash.
The addition of Kyber’s KNC and 0x’s ZRX coincides with Kyber’s announcement of the launch date of the Katalyst protocol upgrade, which is scheduled for July 7, 2020. The update is likely to bring the protocol into the spotlight and potentially increase demand for KNC tokens.
MKR/USD daily chart
MKR/USD has had four straight bullish days as it continues to traverse in an upward channel formation and is currently priced at $456.60. As per technical analysis, immediate resistance lies at $472.30 and $501.95 (SMA 20). On the downside, healthy support levels lie at $451.48 (SMA 50), $441.80 (SMA 200), $437.25 and $420.75.
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