CP127: Open 11 XCM channels and register parachain tokens

Centrifuge Governance Proposals
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cp: 127
title: Open 11 XCM channels and register parachain tokens
uses-components: cp4
author: spazcoin
contributors: N/A
technical-proposal: yes
requires-onchain: yes
status: rfc
date-proposed: 2024-08-30
date-ended: N/A

Short Summary

I propose Centrifuge open XCM channels with the following 15 parachains and register their parachain tokens on Centrifuge:
Interlay, Bifrost, Acala, Zeitgeist, Astar, Phala, Polkadex, KILT, Neuroweb, Pendulum, Mythos

High level objective

Increase connectivity in the ecosystem and remove technical barriers for users and devs.

Background

I’ve seen two problems that I’d like to solve:

  1. Several OG chains like Centrifuge STILL only have a few XCM channels open.
  2. I hear some users ask when their favorite parachain token will be available on a DEX and the answer is “once the team opens an XCM channel”.

I’m solving that by:

  1. Polkadot ref 1071 deposited 164 DOT into Centrifuge’s relaychain child account so that there’s enough DOT to open 11-12 more XCM channels.
  2. Submitting XCM channel opening proposals to governance of lots of parachains (like this one) so that individual parachain teams don’t have to slog through the process for every channel.

Description of Activity

Opening each bidirectional XCM channel and registering assets usually involves three referenda:

  1. Parachain A initiates opening a channel to Parachain B
  2. Parachain B accepts the incoming channel, initiates opening a channel back, and registers Parachain A token(s)
  3. Parachain A accepts the return channel and registers Parachain B token(s)

Currently the following chains have already completed step 1 and have initiated opening an HRMP channel with Centrifuge: Interlay, Bifrost, Acala, Zeitgeist
Currently Astar community is discussing opening 11 channels, including one to Centrifuge.
Centrifuge would need to start with step 1 and initiate opening channels with: Phala, Polkadex, KILT, Neuroweb, Pendulum, Mythos

Change or improvement

Opening XCM channels and cross-registering assets helps enable:

  • Trading CFG on DEXs across Polkadot: Acala, Astar, Polkadex
  • Sablecoins from Stellar to be used in Centrifuge RWA markets via Pendulum
  • Interlay could open a CFG money market (requires runtime changes to support 18 decimals)
  • Use Kilt decentralized IDs for KYC on Centrifuge?

Alignment to the mission of Centrifuge DAO

Centrifuge DAO will want to increase use cases for the CFG token, as well as looking for ways to bring more capital into CFG RWA markets or use services on other chains to accomplish CFG goals.

Delivery and Reporting

Since opening HRMP channels requires initiation and acceptance for each direction, completion of this project will require at least two on-chain referenda, and perhaps depending on how quickly some chains return the HRMP requests. I think this process will only take two months, but I will post periodically (~2 months) with updates/status/progress.

Governance Process for this Proposal

Link to the RFC on the Forum: CP127: Open 11 XCM channels and register parachain tokens
Pull Request: CP127: Open 10 XCM channels and register parachain tokens by spazcoin · Pull Request #127 · centrifuge/cps · GitHub
Link to the onchain vote: not yet

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Hi @spazcoin
Thank you for putting all this together (and for asking DOTs for all parachains).
Do you have already a pre-image for the calls in order to ask our eng to test and double-check?

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@ImdioR unfortunately I’ve discovered a bug with the Centrifuge runtime. @WilliamFreude confirmed the weight for XCM transactions has been set too high (orders of magnitude too high) so every XCM call I craft fails testing in Chopsticks as “PermanentlyOverweight”. William said it won’t be fixed until the next runtime upgrade in October because there’s currently a code audit contest running. So this CP proposal will wait until then.

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Sounds great. Thanks for keeping us informed.

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