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.
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.
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
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.