Via this proposal, the Protocol Engineering Group (PEG) suggests a high level overview of the technical direction of the Centrifuge protocol, so that all Centrifuge DAO contributors can have insight to what is being built, now, soon, and later.
This proposal should bring clarity and a transparent mechanism for how the Centrifuge protocol is built, as well as inviting feedback on prioritisation. It should provide high level details to enable DAO contributors to understand key aspects and features of the protocol. Lastly it may help other technical contributors as they think about and propose functionality to the protocol.
After receiving a mandate for the Protocol Engineering Group, we would like to propose the first roadmap for the Centrifuge DAO.
First, we’ll start by introducing the current members of the PEG. This includes:
- @jeroen, CTO at k/factory (PEG facilitator)
- @annamehr, Product Manager at k/factory
- @mustermeiszer, Technical PM at k/factory
This is a small group to start out with, the goal is to grow this group with more members from the DAO over time.
This group, informed by discussions with k/factory, CNF, EMBRIO, and other core contributing teams of the DAO, has looked at the approved Centrifuge Proposals (CP) and investigated what order to prioritize them.
Below is the current proposal.
More details and links can be find in this table.
|Liquidity Pools rollout (RFC)
|Transaction fees (CP74)
|Pool types (CP63)
|Protocol fees (CP28)
|Linked Pools (CP59)
Note that one CP (e.g. the Liquidity Pools work) is listed through multiple roadmap items, to give more clarity on the specific work being done.
Liquidity Pools: To be able to scale Pools on Centrifuge Chain, Liquidity Pools is needed to offer RWA pools to investors on any L1 and L2. Most of the work for this has already been completed, and this is currently being launched on multiple chains. Below is a visual that shows how this should work.
Liquidity Pools relies on interoperability layers to pass messages between chains. The initial deployments use Axelar, and k/factory (a core protocol development team) is working with the Axelar team to build a native integration for this. This will still take some more time, so in the meantime, the now obtained EVM compatibility of Centrifuge Chain is used for Axelar.
Protocol fees: Beyond launching pools and connecting investments to pools on multiple chains, protocol fees need to be added in order to bring a sustainable source of revenue to the DAO. The technical specification for the mandated fixed fee of 0.4% of the valuation of all loans in the pool has finished, and the k/factory team has recently started implementation on this. The protocol fees feature should be reusable not just for fees going from pools to the Centrifuge treasury, but also for fees that issuers themselves incur in the operations of their pools. This builds towards the vision of pool issuers being able to use the Centrifuge protocol as the source-of-truth for their operations.
Transaction fees: Beyond protocol fees, the recently approved transaction fees from CP74 can bring revenue to the Centrifuge treasury. The PEG proposes implementing this as a priority.
Linked Pools: Once multiple pools are live on Centrifuge Chain, a key feature that can grow the usage of the protocol is Linked Pools. Linked Pools gives users the ability to invest with a single interface into multiple pools. This is a complex technical feature that will require significantly more development time than protocol fees, and thus the PEG recommends prioritizing this below protocol fees.
Pool types: Different pool types CP63 allow for broader usage of Centrifuge by a wide group of users. Currently, the protocol only supports Open Pools. Portfolio Pools should be supported through the technical implementation of Linked Pools. Closed Pools will require additional technical work, to enable users to launch a pool without going through an onchain governance vote.
Scaling up Liquidity Pools even more means safely launching on more chains, this means more integration on more protocols, with more users. In order to help achieve this we likely want to adopt Snowbridge as the interoperability layer to Ethereum mainnet. This work can only start once Snowbridge is deployed on the Polkadot Bridge Hub parachain.
The proposed Roadmap outlined provides a summary of technical proposals that token holders have mandated over the last 6 months and indicates the prioritisation of when they should be built with the ordering of ‘Now, Soon, Later’. Centrifuge DAO members are encouraged to provide feedback on this ordering, and also mention other features or functionality that they believe to be important, for the PEG to consider.