Hello all moonbeam community,
I am DrCao (twitter: https://twitter.com/cao_lab), I am an active contributor and ambassador in Centrifuge DAO, I am also in charge of the Asian market for Centrifuge, and some of you may know me as the pre-Community Manager in Parallel Finance, or as the director of Chinese community AIWeb3 in WagMedia or from my youtube channel for Dotsama eco (check my twitter). I would like to have a discussion with the moonbeam community about a potential proposal to list CFG in Moonbeam.
The following is the draft, I would like to hear the feedback from the community, and I would be happy to make changes based on the suggestion, thank you all and I love moonbeam!
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Author: DrCAO (Centrifuge Asian director)
Technical/non-technical proposal: Technical proposal
Date proposed: 2023-04-03
Short Summary
We propose to open HRMP communication between Centrifuge and Moonbeam with subsequent intent to list CFG into the Moonbeam.
Background
Centrifuge is the infrastructure that facilitates the decentralized financing of real-world assets natively on-chain, creating a fully transparent market which allows borrowers and lenders to transact without unnecessary intermediaries. Asset pools are fully collateralized, liquidity providers have legal recourse, and the protocol is asset-class agnostic with pools for assets spanning mortgages, invoices, microlending and consumer finance. Ultimately, the protocol aims to lower the cost of borrowing for businesses around the world, while providing DeFi users with a stable source of collateralized yield that is uncorrelated to the volatile crypto markets. By bringing the entire structured credit market on-chain across securitization, tokenization, privacy, governance, and liquidity integrations, Centrifuge is building a more transparent, affordable, and limitless financial system.
Tinlake on Centrifuge
Centrifuge has experimented with multiple versions of the previous iteration of the Centrifuge Protocol, called Tinlake: https://tinlake.centrifuge.io/, on Ethereum. It started with the first version in 2019, adding static pooling and simple tranching support in early 2020, launching the revolving pools late 2020, and integrating the first pool with the MakerDAO protocol in mid 2021. The lessons learned from these iterations have been used to develop the first version of the full fledged Centrifuge Protocol. Every iteration has been thoroughly audited by acknowledged smart-contract auditing firms ( github website and centrifuge/security/tree/main/audits ), and all the code is available on github: github website site under centrifuge)
Detailed Description
The procedure for opening the channels is as follows:
- Moonbeam proposes to open the Moonbeam to Centrifuge HRMP channel.
- Centrifuge proposes (a batch) to accept the Moonbeam to Centrifuge HRMP channel and open the Centrifuge to Moonbeam HRMP channel
- Wait until the proposal on step 2 gets approved & enacted.
- Moonbeam accepts the Centrifuge to Moonbeam HRMP channel
- Wait for another session on Polkadot for the change to be effective.
These extrinsics need to be called with the parachain’s sovereign account as the origin. To achieve this, on the Moonbeam side we will use polkadot-xcm pallet to send XCM message to the relay chain, by executing the following extrinsic from the parachain. Centrifuge should make an open request call and an accept request call with its pallet.
As a prerequisite, the parachain’s sovereign account must contain at least 20 DOT to be locked as collateral (10 for each channel direction), plus some DOT to pay for XCM execution fees.
Benefits and Alignment to the Mission of the Moonbeam
One of the advantages of Polkadot is the cross-chain communication through XCM. Both the Centrifuge DAO and Moonbeam, will benefit from moving this proposal forward.
Moonbeam is a smart contract platform that provides an Ethereum-compatible environment for building decentralized applications. As the DeFi hub in Polkadot eco, it is beneficial for Monnbeam to list one of the top parachain project in Polkadot eco system - Centrifuge. More importantly, CFG is also the only parachain project in Polkadot that focuses on bringing Real World Asset (RWA) on-chain, and also the TVL of CFG increased steadily despite of the market condition (more than 169 million by end of March on Tinlake), so listing CFG would build the connection of Moonbeam with RWA.
For Centrifuge, Users will be able to trade native CFG within the dotsama ecosystem, no need to use CEXs or bridge to Ethereum anymore. It is beneficial that users can trade CFG in a decentralized way from Moonbeam, so they don’t need to bridge it to Eth or exchanges. Moonbeam may also allow CFG trading or LP with stable coin and other assets.
Do you agree with this idea 
- Yes, I like it a lot.
- No, but I will propose something.
- No, I dislike it.
- I need more info.
