Welcome to the POP Information Center, your go-to resource hub for everything related to the Pool Onboarding Proposal Process (POP) and launching a pool on Centrifuge. Here, you will find all the essential information and resources you need to grasp the process and have a clear understanding of the expectations when applying to launch your pool.
What is the POP?
The Pool Onboarding Proposal, POP for short, is a community owned and CFG governance-led process for onboarding RWAs into DeFi through the Centrifuge protocol.
Why POP?
The POP is intended to both simplify the process, as well as curate the quality of RWAs financed through Centrifuge in a transparent, open structure that enables participation from the community as well as from experts within the community. With the launch of the new app the POP is more important than ever. The information provided helps the community vote on your pool with confidence. The process is held by the Community, and most specifically CFG token holders, using their tokens to vote on launching proposed pools.
You can learn more about the POP and the ideal requirements for submission here: https://github.com/centrifuge/cps/blob/main/cps/CP5/Appendices/proposal-guidance.md
Where?
Please submit your POP to the Centrifuge Governance > Proposals section of our Governance forum and ensure you use the tags rfc and pop-submission and create your own tag with the proposed pool name (example jays-properties). The title of the post should be
RFC: (POP) [pool name]
Example: RFC: (POP) Jays Properties
When creating your POP please use the following template: https://github.com/centrifuge/cps/blob/main/cps/CP5/Appendices/proposal-template.md
You can view submitted POPs here: Topics tagged pop-submission
The Pop Process:
Steps:
1. Propose Pool
- Submit POP to the community governance forum for a Request For Comment (RFC) period.
- Allow for a minimum of 7 days for discussion with the community and the Centrifuge Credit Group, who may volunteer to do an analysis of the proposed pool at their own discretion and share it with the community. Credit Group participation is not guaranteed.
- The Applicant can host a Pool Party if they would like to engage with community and allow the community to ask questions.
2. Launch
- To prepare to launch the pool, the POP must go to a vote.
- For an on-chain vote, the applicant must submit their POP to Github. The Governance & Coordination Group (@ImdioR or @Rhano) can help facilitate the GitHub submission if needed.
- An on-chain proposal is then initiated directly from the Centrifuge App to sub-square for all CFG token holders to vote on (Minimum of 7 days). If it passes the vote the pool will be live on the Centrifuge app.
POP FAQ
What is Centrifuge?
- Centrifuge is a decentralized protocol that allows users to create and manage tokenized assets on the Centrifuge blockchain.
What is a pool on Centrifuge?
- A Centrifuge pool is an open, smart-contract-based financing platform that brings together businesses and Investors through Decentralized Finance (DeFi). With a Centrifuge pool, Issuers can finance real-world assets, such as invoices, mortgages, or streaming royalties on-chain via the investment of crypto investors and DeFi protocols. They do this by tokenizing their financial assets into Non-Fungible Tokens (“NFTs”) and using these NFTs as collateral in their Centrifuge pool.
How can I launch a pool on Centrifuge?
- To launch a pool on Centrifuge, you would need to apply via the Pool Onboarding Process (POP) outlined above. Additionally, a pool must be registered, completing necessary documentation, and meeting any compliance standards.
What are the benefits of launching a pool on Centrifuge?
- Launching a pool on Centrifuge can provide various benefits, such the ability to tokenize real-world assets and provide transparency to pool investors.
What types of assets can be included in a Centrifuge pool?
- Centrifuge supports the tokenization of real-world assets, such as invoices, real estate, royalties, and more. The types of assets that can be included in a pool depend on the asset class the POP submitted to the community.
How does liquidity work in a Centrifuge pool?
- Liquidity in a Centrifuge pool is provided by users who lock stablecoins into the pool in return for pool tokens. The stablecoins can then be used by the issuer to finance real world Assets.
What is a Revolving Pool?
- Usually, Centrifuge pools are set up as “revolving pools”. Revolving pools allow investors to lock investments and redemptions at any point in time. A decentralized solver mechanism matches investments and redemptions with the liquidity in the pool and ensures that certain risk metrics remain intact. This ensures that Issuers have a constant source of liquidity while investors can flexibly invest and redeem. For both Investors and Issuers this is dependent on sufficient liquidity.
Are there any fees associated with launching a pool on Centrifuge?
- Fees for launching and managing a pool include on-chain transaction fees in the form of CFG, to initiative the pool creation vote process you must have 1,000 CFG for the deposit and protocol fees of 0.40% of the valuation of all loans in the pool per year. If you choose to utilize the built in KYC partner there are also costs for onboarding investors.
What is the Centrifuge Credit Group?
- The Centrifuge Credit Group refers to a designated group of individuals who are responsible for assessing the creditworthiness and risk profile of the assets within a Centrifuge pool. Their role is to evaluate the quality, reliability, and value of the potential issuer and proposed underlying assets to ensure that they meet the necessary standards for inclusion on the protocol. The Credit Group helps to make non-binding recommendations on the risk parameters, collateral requirements, and overall viability of the assets, which aids in maintaining the integrity and stability of the Centrifuge ecosystem. Their assessment is a crucial part of the decision-making process when it comes to accepting issuers/assets. Ultimately, their assessment is for the benefit of the community but is not investment advice or any other warranty. They are here to help the DAO to grow.
Who should I speak with to create a pool?
- For best results it is key to engage directly with the community on the forum, they will decide if your pool launches via an on-chain vote.
What is an on-chain vote?
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An on-chain vote is the last step in the POP before a pool can launch. To vote in an on-chain vote, CFG tokens are required and all tokens can (and are encouraged) to vote. If the vote passes, the pool will launch automatically on Centrifuge Chain with the selected parameters when it was created. You can read more about how on-chain voting works here.
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To initiate the on-chain vote, the submitter must pay the pool creation transaction fee (in CFG), and hold 1,000 CFG to place as a deposit.
How do I submit my POP to Github before moving to a vote?
How long does the POP process take to launch a pool on average?
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The POP process typically spans from 1.5 to 3 months, starting from the submission of the POP to the launch of the pool. The minimum duration of the process of 1.5 Months after POP submission consists of a two-week community review/comment period of the POP, followed by a two-week assessment by the Centrifuge Credit Group, and concluding with an on-chain vote lasting two weeks to create the pool, if passed.
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It’s important to note that the overall timeline can vary widely based on multiple factors, including but not limited to, the duration of community dialogue, the time taken by the Centrifuge Credit Group to complete their assessment, the responsiveness of the POP applicant to inquiries from interested parties, and the time needed by the applicant to secure funds for pool launch.
Links:
POP Folder: https://github.com/centrifuge/cps/tree/main/cps/CP5
POP - Explained: https://github.com/centrifuge/cps/blob/main/cps/CP5/CP5.md
POP - Process Overview: https://github.com/centrifuge/cps/blob/main/cps/CP5/Appendices/process.md
POP - Guidance and Expectations: https://github.com/centrifuge/cps/blob/main/cps/CP5/Appendices/proposal-guidance.md
POP - Proposal Template: https://github.com/centrifuge/cps/blob/main/cps/CP5/Appendices/proposal-template.md
POP submission Location: Topics tagged pop-submission
Contact for support questions: If you have any questions related to the process please contact the bizdev support email (bizdev@centrifuge.io) with the subject POP - Assistance