Enable A New Vault Type With KINT As Collateral

As part of this proposal, I also suggest that we Fast track its enactment so that we can allow for new issuance, given that we have already had a lengthy time to discuss; and there has been no contention from the community.

Summary

This proposal enables the usage of KINT as collateral for Kintsugi vaults.

Proposal

ℹ️ The full discussion of this proposal can be found in this post

Currently only KSM is accepted as collateral for vaults. One of the main goals for kBTC stability is to diversify the number of tokens that can be used as collateral. This has also been requested by current kBTC vault operators.

The next asset suggested as collateral is the KINT governance token. It is the quickest to enable and has also been one of the main requests from active vaults.

In order to enable KINT as collateral, to activate the new Vaults, parameters need to be changed on-chain as following:

• Initial collateral ceiling: 100,000 USD equivalent (26,200 KINT)
• Secure collateral threshold: 900%
• Premium redeem threshold: 650%
• Liquidation threshold: 500%
• Minimum Collateral: 55 KINT

Further Resources

• kBTC Collateral Analysis For KSM
• Kintsugi Governance 101
• Governance guides
• Kintsugi tokenomics
• Python code used for analysis of new assets proposed as vault collateral