The decentralized finance (DeFi) ecosystem continues to evolve at a rapid pace, and one of its foundational pillars—MakerDAO—has taken a significant step forward. The MakerDAO community has officially approved KNC and ZRX as new collateral types for generating the DAI stablecoin. This move expands the range of supported digital assets within the Maker Protocol and underscores the platform’s commitment to decentralization, diversity, and risk-managed growth.
Alongside this update, six additional token proposals are currently undergoing governance voting, with outcomes expected in the coming days. While some show strong support, others face an uphill battle to pass.
✅ KNC and ZRX Now Live as Collateral
As confirmed in a recent MakerDAO blog announcement, the governance proposal to add Kyber Network (KNC) and 0x (ZRX) as collateral types was successfully passed. The change went live shortly after approval, allowing users to begin locking these tokens immediately through integrated platforms such as Oasis Borrow.
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This integration means that holders of KNC and ZRX can now participate directly in the Maker ecosystem by depositing their tokens into vaults and generating DAI—without having to sell their positions. It’s a powerful use case for long-term believers in these protocols who still need liquidity.
About the Newly Added Tokens
Both KNC and ZRX are established ERC-20 tokens rooted in key DeFi infrastructure projects:
- KNC (Kyber Network): Powers a decentralized liquidity aggregation protocol designed for instant token swaps across multiple chains. Its on-chain mechanism enables seamless exchange between different cryptocurrencies via dynamic reserve pools.
- ZRX (0x Protocol): Facilitates off-chain order relaying with on-chain settlement, enabling efficient peer-to-peer and decentralized exchange of Ethereum-based assets. It's widely used in NFT marketplaces and DeFi applications requiring low-latency trading.
By accepting these tokens as collateral, MakerDAO reinforces trust in battle-tested DeFi primitives while diversifying its collateral base beyond major assets like ETH or WBTC.
Governance-Driven Risk Parameters
Each new collateral type comes with carefully evaluated risk parameters set by the MakerDAO governance process. These parameters help maintain system stability even during periods of high volatility.
While exact figures such as liquidation ratios, debt ceilings, and price feed mechanisms are managed dynamically by risk teams, the inclusion of KNC and ZRX reflects confidence in their market depth, transparency, and protocol resilience.
These decisions are not made lightly—each proposal undergoes rigorous review by MakerDAO’s Risk Team, including stress testing, dependency analysis, and oracle security audits before being put to vote.
🔁 Base Rate and Stability Fee Adjustments
In tandem with the collateral upgrade, the latest governance vote also adjusted key economic levers within the protocol:
- Base Rate increased to 0.25%
This base rate is a core component of DAI’s stability mechanism—it influences borrowing costs across all collateral types using the formula:
Stability Fee = Base Rate + Risk Premium (per collateral type)
The updated stability fees for major vaults are now:
- ETH-A: 0.25%
- BAT-A: 0.25%
- USDC-A: 1.00%
- USDC-B: 50.25% (targeting higher-risk rate-sensitive vaults)
- WBTC-A: 1.25%
- TUSD-A: 0.25%
These adjustments aim to balance user incentives with systemic risk management, particularly amid shifting macroeconomic conditions and fluctuating demand for leveraged positions.
🗳️ Six Additional Tokens in Active Voting
Expanding DAI adoption remains a top priority for the MakerDAO community. To achieve broader market penetration, multiple new collateral proposals were launched last week. The following six tokens are currently under community review with voting open for eight more days:
- ENJ (Enjin Coin) – Gaming & NFT ecosystem token
- LEND (Aave Token) – Legacy branding for Aave’s lending protocol
- LINK (Chainlink) – Leading decentralized oracle network
- MATIC (Polygon) – Ethereum scaling solution
- PAXG (Paxos Gold) – Gold-backed digital asset
- WKT (Wrapped Kava Token) – Cross-chain DeFi platform token
Current Voting Trends
As of now:
- LINK, PAXG, and WKT show majority support
- ENJ, LEND, and MATIC face significant opposition, with over 70% of votes opposing their inclusion
This split highlights ongoing debates around asset quality, decentralization, use case relevance, and long-term viability within the Maker ecosystem.
For example:
- PAXG brings real-world asset (RWA) exposure, appealing to those seeking non-crypto correlated value.
- LINK offers robust network utility with widespread integration across DeFi.
- Conversely, concerns about MATIC’s centralization risks or ENJ’s niche application in gaming may be influencing voter sentiment.
All eyes will be on the final results when voting closes—each decision shaping the future composition of DAI’s collateral stack.
FAQ: Understanding MakerDAO’s Collateral Expansion
Q: Why does MakerDAO add new collateral types?
A: Adding diverse collateral types helps decentralize risk, increases DAI’s availability, and promotes broader adoption across different blockchain ecosystems.
Q: How are risks managed when adding new tokens like KNC or ZRX?
A: MakerDAO employs a multi-layered risk framework involving formal risk assessments, debt ceiling caps, price feed audits, and continuous monitoring by governance-elected risk teams.
Q: Can I start using KNC or ZRX to generate DAI today?
A: Yes—simply connect your wallet to Oasis Borrow or another supported front-end, create a vault, and deposit KNC or ZRX to draw DAI.
Q: What happens if a collateral type loses value quickly?
A: If the value drops below the liquidation threshold, the vault is automatically liquidated to protect the system’s solvency. Users should monitor their health ratios closely.
Q: Is there a limit to how much DAI I can generate with KNC/ZRX?
A: Yes—each collateral type has a system-wide debt ceiling to prevent overexposure. These limits can be adjusted via future governance votes.
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The Bigger Picture: DeFi Maturity Through Governance
MakerDAO’s latest updates exemplify how decentralized governance can drive innovation while maintaining fiscal discipline. Unlike traditional financial systems where changes are dictated top-down, MakerDAO empowers its community to shape policy through transparent, on-chain voting.
The ability to fine-tune parameters like base rates, introduce new collateral, and reject underperforming assets ensures that DAI remains resilient—even in turbulent markets.
Moreover, integrating tokens like KNC and ZRX strengthens inter-protocol connectivity across DeFi. As more projects become eligible collateral, we move closer to a truly composable financial web where value flows freely across platforms.
Final Thoughts
With KNC and ZRX now officially backing DAI issuance, and six more tokens awaiting final judgment, MakerDAO continues to lead in open, permissionless finance. These developments reflect not just technical progress but a maturing governance culture—one that values data-driven decisions, risk awareness, and community participation.
Whether you're a long-time DAI user or exploring DeFi for the first time, now is an excellent time to engage with the ecosystem, understand collateral dynamics, and make informed choices about leveraging digital assets.
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Core Keywords: MakerDAO, KNC, ZRX, DAI stablecoin, DeFi collateral, governance voting, Oasis Borrow, stability fee