RFC: Proposal to build Centrifuge Connectors - a cross-chain solution to connect Centrifuge Chain with other protocols

Proposal to build Centrifuge Connectors - a cross-chain solution to connect Centrifuge Chain with other protocols

Hi Centrifuge Community,

I’m Anna, a contributor to the Centrifuge Protocol, focussed on building the Centrifuge Product. I would like to ask CFG token holders and the community for feedback to support this solution and vote “yes” to it being built and implemented on a proposed solution to connect Centrifuge with other protocols - Centrifuge Connectors.

The purpose of this would be to allow investors to provide liquidity into Centrifuge pools without having to bridge over to the Centrifuge Chain. The intention of this proposed development is not to replace the investment flow on Centrifuge Chain, but instead enable a fully native experience for users on any supported chain ultimately giving the opportunity to use different bridges to access more chains. This means Centrifuge would be able to scale to more chains quicker and more easily bringing the Centrifuge pools to even more users.

What is Connectors?

On a technical level, Connectors uses a set of Solidity contracts that can be deployed on top of any general-purpose EVM bridge to do the following:

  • Bridge KYC-ed/permissioned Centrifuge Pool tokens to users across different chains
  • After successful KYC verification, allowing users to directly redeem or invest into a pool using any native stablecoin on the target chain
  • Integrate into liquidation mechanisms for protocols so that they can liquidate tokens across chains

The Connectors contracts can use different bridges to access more chains but will initially target to support Axelar at launch while using XCM for bridging to other parachains on Polkadot.

Benefits of Connectors

What’s next

The k/f engineering team built a proof-of-concept with Moonbeam and successfully sent the first message from Connectors pallet on Centrifuge Chain to add a pool from Centrifuge to the Connectors contract deployed on Moonbase EVM pallet. This is the first step to allow people to invest into a pool in the future.

The k/f engineering team is testing further messages, like AddTranche, Transfer etc. The current XCM-to-EVM remote execution built by Moonbeam on Moonbase is a Proof-of-Concept and they don’t have an immediate timeline for release.

The vision is for issuers to use Centrifuge Chain to create pools with pool tokens that can be bridged to any chain. We are proposing to build connections to Ethereum, Moonbeam, Avalanche as well as other DeFi ecosystems.

In summary, I would like to gauge support for this proposal from the community. This RFC on the Centrifuge forum will run for 7 days and if there are no blockers a snapshot vote on OpenSquare will be opened and will run for 7 days.

8 Likes

Good day Anna
I’m a big fan of Connectors. Also, i participated in Moonbeam X Centrifuge twitter AMA where Moonbeam and Centrifuge devs explained the importance of Connectors for both projects.

I have no objections and I fully agree with RFC!

If somebody would like to dive into Connectors:

:cyclone:Twitter AMA with Moonbeam X Centrifuge
:red_circle:The rec: https://twitter.com/i/spaces/1lPKqBNDrrWGb

1 Like

I fully support this proposal - this is a prerequisite to expand Centrifuge Pools to the broader crypto ecosystem and tap into their liquidity. It is one of the most exciting and promising initiatives I have come across and can’t wait to see it unfold.

Just two quick questions regarding KYC; is there any info available as to where and how it will take place on other chains? And are users from certain jurisdictions prohibited from participating?

I will share more information as soon as we have mapped out the KYC process. The current KYC/AML provider Securitze is a SEC-licensed transfer agent offering compliant investor onboarding services. Investors who pass KYC/AML and verified accredited-investor status if required get a Securitize iD, which allows them to subscribe to all Centrifuge pools. As part of compliant KYC/AML process, there are countries where investors are currently blocked from investing in Centrifuge pools. For the latest list of blocked countries I’d recommend to check the latest list of OFAC Sanctioned Countries.

3 Likes

Fully support this. Is Kilt Did an opotion for kyc?

This absolutely makes sense, interoperability is one of the keys to mass adoption. I would like to know from a technical perspective, which further protocols do the devs have in mind or is this just a general request?

This will great for expanding liquidity within pools in a seamless way. Definitely in support!

Hello Anna
I have a couple of questions and I will be grateful if you could answer some of them:

  1. I would like to know about the estimated development timeline.
  2. Will there be audit security? Who will conduct it?
  3. Are you planning a test on Altair before full implementation on Centrifuge?

Hi Ivan,

  1. I can’t share an estimated development timeline right now but will let you as soon as there is an update.

  2. Yes, SR Labs is doing ongoing auditing work for all the engineering work at Centrifuge, and this will include auditing Connectors.

  3. Yes, we will test it on our canary network Altair before.

2 Likes

Great, thank you for your answer!

This proposal has moved to a snapshot vote (ex poll) :partying_face:

:arrow_forward: Please cast your vote via snapshot voting on OpenSquare here .

Remember, that you never lose your CFG tokens by voting in a snapshot vote neither locking them.

Thanks, everyone for participating in the discussion.