KyberDAO has recently approved and began a migration process from the current KNC token to a new KNC token version. Full details and migration guide can be found here. Migration may cause a decline in liquidity for the current KNC token which backs the KNC-A vault type.
I want to gauge community support for reducing the KNC-A vault maximum debt ceiling (also know as the
line) to 0 DAI, in preparation for the eventual deprecation of this token. You can learn more about the line/debt ceiling parameter in the docs here. Note that this will prevent new borrowing from this vault type but will not affect existing borrowing positions.
- Reduce risk from legacy KNC token, which may see less liquidity in the future
- Potential for lower oracle costs in future if vault is fully deprecated
- Lose future business from KNC-A vault users, and accompanying DAI income
Should we reduce the KNC-A vault maximum debt ceiling (line) from 5,000,000 DAI to 0 DAI?
- Yes, reduce KNC-A debt ceiling to 0
- No, leave KNC-A debt ceiling at 5,000,000
Voting will run for 2 weeks, until 11 May 2021. If a majority of forum voters (excluding abstain voters) support reducing the KNC-A debt ceiling, this will move forward to an on chain poll of MKR holders.
This signal request is part of a longer term plan for addressing the KNC token migration. Review the proposed deprecation process here.