Discussion about open HRMP channel between Moonbeam and Centrifuge

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!

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.


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:

  1. Moonbeam proposes to open the Moonbeam to Centrifuge HRMP channel.
  2. Centrifuge proposes (a batch) to accept the Moonbeam to Centrifuge HRMP channel and open the Centrifuge to Moonbeam HRMP channel
  3. Wait until the proposal on step 2 gets approved & enacted.
  4. Moonbeam accepts the Centrifuge to Moonbeam HRMP channel
  5. 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 :grey_question:

  • Yes, I like it a lot.
  • No, but I will propose something.
  • No, I dislike it.
  • I need more info.

By the way, the code for Centrifuge is publicly available and being audited: Every iteration has been thoroughly audited by acknowledged smart-contract auditing firms (security/audits at main · centrifuge/security · GitHub ), and all the code are available on github: Centrifuge · GitHub

Centrifuge has also passed the proposal for EVM compatibility, and some Key Metrics

  • Total Value Locked: $170M (MakerDAO: $85.6M; RWA Market: $4.1M)
  • Total Active Loans: $168M
  • Total Assets Originated: $318M
  • Total Assets repaid: $13.9M

Hey, DrCAO, a great initiative, this is a fairly frequent request from the community.

as Alberto said recently:
the Centrifuge channel is open bidirectionally but the CFG token was not registered (yet) at the request of their team.

Hi Turrizt! Thank you very much for your feedback! This would be great, if needed, I can help with a proposal from moonbeam to Centrifuge forum and talk about the CFG registration.

1 Like

It seems to me that you can contact Centrifuge team to clarify their plans when they plan to register a CFG token on Moonbeam, it would be great if you then shared the latest information with our community!

thank you in advance for your support and help, we really appreciate it

Dear turrizt, sure, I can definitely talk to CFG team, that’s why I would like to know what the Moonbeam community thinks about the proposal, and then we can figure a way to work together on this :slight_smile:

I see that users are interested in being able to interact with CFG assets in Moonbeam, so it looks like it would be awesome!

@AlbertoV19, could you please clarify if there are any technical points that need to be done on our part, or is everything ready and all actions should be performed by a centrifuge team?

Hey both!

Thanks for starting the discussion here. We can definitely help on how to create a proposal to register CFG as an XC-20. Feel free to reach out in Telegram (@albertoV19) and we can further discuss how would the process look like.

Just FYI - there is a 500 GLMR deposit to submit the preimage y a 400 GLMR bond to submit the proposal. This is refundable but it is needed to start the process.



I have messaged you on Telegram, thank you Alberto and turrizt!


Here are some updates on this topic: