# Centrifuge Deployment on Celo **URL:** \ **Category:** Governance Proposals\ **Created:** [August 22, 2023, 6:32pm UTC](https://forum.celo.org/t/centrifuge-deployment-on-celo/6405 "2023-08-22T18:32:55Z")\ **Posts on this page:** 19\ **Page:** 1
**Author:** ![0xKhan](https://avatars.discourse-cdn.com/v4/letter/0/3da27b/32.png) [@0xKhan](https://forum.celo.org/u/0xKhan)\ **Post date:** [August 22, 2023, 6:32pm UTC](https://forum.celo.org/t/centrifuge-deployment-on-celo/6405/1 "2023-08-22T18:32:55Z")
Hey everyone, Asad Khan from Centrifuge here, please see below for our proposal to deploy Centrifuge to Celo, in support of our partners @flowcarbon. ### Background Tokenization of Real World Assets, or “RWAs”, is among the fastest growing verticals in web3 - in large part due to the increased adoption of on-chain credit solutions. RWAs can represent tangible assets such as real estate or precious metals, or intangible assets such as government bonds or carbon credits. In the words of Larry Fink, CEO, BlackRock “The tokenization of asset classes offers the prospect of driving efficiencies in capital markets, shortening value chains, and improving cost and access for investors.” Celo’s recently established Credit Collective consists of several companies bridging a wide range of RWAs onchain. The success of Credit Collective’s recent governance proposal CGP-84 is indicative of the burgeoning on-chain credit market and the strong interest in RWAs from the Celo ecosystem - particularly as it relates to Natural Capital assets and Regenerative Finance. According to data from RWA.xyz as of 8/14/23, over $4.4B worth of loans have cumulatively been issued across web3 protocols; of which over 10% ($0.46B) originated from Centrifuge. Centrifuge is, by many metrics, the most successful RWA tokenization protocol across web3. It was the first protocol to bring RWAs onchain, the first to back DAI with non-crypto native assets, launched the first RWA integration with Aave, and is the first protocol to bring an institutional credit funds operations onchain. The assets Centrifuge supports include: commercial real estate, account receivables, inventory financing, structured credit, and carbon credit forward financing. Through this proposal, we aim to allocate the CELO-equivalent of $150k USD from the Celo Community Fund towards Centrifuge’s timely native deployment on Celo. ### Areas of Focus The scope of this proposal is to natively deploy and successfully launch Centrifuge on Celo mainnet by the end of October 2023. The associated $150k of development costs breaks out as follows: - $25k - Initial deployment cost of Centrifuge on Celo - $50k - Audit of Centrifuge on Celo - $75k - Support, upgrades and maintenance over the first 12 months ### Success Criteria As outlined in CGP-84, “Total Debt Value Locked” is a key metric by which the Celo community can measure the success of Centrifuge. Several companies in the rapidly expanding Credit Collective have registered interest in utilizing Centrifuge on Celo to launch their debt pools. Since Centrifuge enables the issuance of “ReFi” and Natural Capital assets (eg. carbon credit forward contracts, renewable energy infrastructure loans, traditional development finance) - cumulative impact metrics around CO2, gigawatts, sustainable development goals (SDGs), and domain-specific parameters are relevant indicators of success. An important feature of this deployment is that Centrifuge pools on Celo can accept capital from Ethereum mainnet and other chains. Consequently, it is expected that launching Centrifuge and associated debt pools will drive significant bridging volume towards Celo. ### Known Risks Given that Centrifuge is a standalone web3 protocol, there is minimal risk in deploying the infrastructure itself on Celo. The primary risks are associated with the possibility of defaults on debt pools, which is not linked to web3 but rather the underlying RWAs. This risk has been historically mitigated by the diligence conducted by the Centrifuge governance community in the “Pool Onboarding Process ([POP](https://gov.centrifuge.io/t/introducing-the-pool-onboarding-proposal-pop/3846))”. The Centrifuge community has recently established the [Credit Group](https://gov.centrifuge.io/t/introducing-the-centrifuge-credit-group/4994), a team of outside experts capable of providing risk analysis for Pools at launch. This function helps to ensure that the underlying deal that establishes the Pool is arranged in a way that is consistent with best practices, competitive to market standards, and most importantly, with due regard to appropriate risk management and compensation for investment returns. ## Implementation ### Budget We request to set our spend permit on the community fund at 400,000 CELO - but hope to not use the full amount. This number accounts for CELO at $0.375 (150,000 cUSD from 400,000 CELO) and protects the budget from acute market volatility. Any unutilized CELO will remain in the community fund. ### Multisig A Multisignature wallet hosted on Gnosis Safe will be used to manage and deploy the funds with a required 2 of 3 signature threshold. The contract address is 0x34CbB11f19D9B6F1fC54d20B5e248Db4a9B9afa2 and can be found at ([Safe{Wallet}](https://app.safe.global/home?safe=celo:0x34CbB11f19D9B6F1fC54d20B5e248Db4a9B9afa2)). The signers on this multisig are: - Lucas Vogelsang (Centrifuge): 0xAAA0da6a9673110a15bA11fAc8eE142A8D86E117 - Nirvaan Ranganathan (Flowcarbon / Climate Collective): 0x42B4a02f79438D558AB33E326638ed752b94D187 - Tomer Bariach (Flori Ventures / Credit Collective): 0xEBe109b76b606C19DDC890fFcA3e992e6a0fB13D ### Proposed Change ```auto [ { "contract": "GoldToken", "function": "approve", "args": [ "0x34CbB11f19D9B6F1fC54d20B5e248Db4a9B9afa2", "400000000000000000000000" ], "value": "0" } ] ``` ### Verification celocli governance:show --proposalID 129 --node [https://forno.celo.org](https://forno.celo.org/) You should see: ```auto Running Checks: ✔ 129 is an existing proposal proposal: 0: contract: GoldToken address: 0x471EcE3750Da237f93B8E339c536989b8978a438 function: approve args: 0: 0x34CbB11f19D9B6F1fC54d20B5e248Db4a9B9afa2 1: 400000000000000000000000 params: __length__ : 2 spender: 0x34CbB11f19D9B6F1fC54d20B5e248Db4a9B9afa2 value: 400000000000000000000000 (~4.000e+23) value: 0 metadata: proposer: 0x42B4a02f79438D558AB33E326638ed752b94D187 deposit: 100000000000000000000 (~1.000e+20) timestamp: TBD transactionCount: 1 descriptionURL: https://github.com/celo-org/governance/blob/main/CGPs/cgp-0095.md ``` ---
**Author:** ![Deepcryptodive](https://sea2.discourse-cdn.com/flex020/user_avatar/forum.celo.org/deepcryptodive/32/7197_2.png) [@Deepcryptodive](https://forum.celo.org/u/Deepcryptodive)\ **Post date:** [August 24, 2023, 12:13pm UTC](https://forum.celo.org/t/centrifuge-deployment-on-celo/6405/2 "2023-08-24T12:13:40Z")
I’m very much inclined towards the deployment of more RWA yield protocols on Celo, Centrigue included. Theoretically, this paves the way for more sustainable yield sources for both users and applications on Celo. in favor deploying more RWA yield protocols on Celo, including Centrifuge. In theory, this opens up more sustainable yield opportunities for users - and integrating applications - on Celo. A few questions and observations from my side: - Apart from ReFi-centric RWAs, could this also grant access to conventional bond markets, such as UST bills? - The quoted CELO price of $0.375 seems quite low. This was the absolute lowest point noted on June 15th. A 60-day or 90-day volume-weighted average price (VWAP) might offer a more precise figure, likely closer to $0.5 per CELO ---
**Author:** ![nirvaan](https://sea2.discourse-cdn.com/flex020/user_avatar/forum.celo.org/nirvaan/32/7242_2.png) [@nirvaan](https://forum.celo.org/u/nirvaan)\ **Post date:** [August 24, 2023, 5:45pm UTC](https://forum.celo.org/t/centrifuge-deployment-on-celo/6405/3 "2023-08-24T17:45:31Z")
Thanks for your feedback @Deepcryptodive! I agree that this proposal paves the way for sustainable yield sources and, longer term, a thriving ecosystem for on-chain credit solutions emerging from the Credit Collective. Answering your questions to the best of my ability: - Centrifuge’s RWA tokenization infra can be used for a wide range of assets including US Treasury bills, as highlighted on Centrifuge [Prime](https://centrifuge.io/prime). - The quoted $0.375 price of CELO is intentionally low to protect from acute market volatility. As the proposal stipulates: > [@0xKhan](#): > > We request to set our spend permit on the community fund at 400,000 CELO - but hope to not use the full amount. This number accounts for CELO at $0.375 (150,000 cUSD from 400,000 CELO) and protects the budget from acute market volatility. Any unutilized CELO will remain in the community fund. ---
**Author:** ![0xKhan](https://avatars.discourse-cdn.com/v4/letter/0/3da27b/32.png) [@0xKhan](https://forum.celo.org/u/0xKhan)\ **Post date:** [August 24, 2023, 6:53pm UTC](https://forum.celo.org/t/centrifuge-deployment-on-celo/6405/4 "2023-08-24T18:53:48Z")
> [@Deepcryptodive](#): > > - Apart from ReFi-centric RWAs, could this also grant access to conventional bond markets, such as UST bills? This deployment will indeed make assets on Centrifuge available to the entire CELO ecosystem. ---
**Author:** ![Markus](https://avatars.discourse-cdn.com/v4/letter/m/b782af/32.png) [@Markus](https://forum.celo.org/u/Markus)\ **Post date:** [August 25, 2023, 2:48am UTC](https://forum.celo.org/t/centrifuge-deployment-on-celo/6405/5 "2023-08-25T02:48:52Z")
Thank you for this proposal draft! I would be excited to see Centrifuge on Celo, as the assets this would enable would be a very valuable addition to the whole ecosystem. I agree that RWAs are a quickly growing field, perfectly suited for Celo with its real world application focus. It could be a great addition to see more detailed milestones in the proposal. The proposal asks for a significant amount of funds from the community fund, therefore it would be interesting whether success metrics like TVL could be linked to the spend? Are there options to reduce costs, e.g. introduce trigger levels that unlock the second part of the funds (i.e. the 75k for upgrades and support)? ---
**Author:** ![0xGoldo](https://sea2.discourse-cdn.com/flex020/user_avatar/forum.celo.org/0xgoldo/32/7159_2.png) [@0xGoldo](https://forum.celo.org/u/0xGoldo)\ **Post date:** [August 25, 2023, 8:00am UTC](https://forum.celo.org/t/centrifuge-deployment-on-celo/6405/6 "2023-08-25T08:00:41Z")
Hey! Great proposal! Given the EVM-compatible nature of Celo what’s the 50k for Audit is for? Thanks in advance for your answer. ---
**Author:** ![nirvaan](https://sea2.discourse-cdn.com/flex020/user_avatar/forum.celo.org/nirvaan/32/7242_2.png) [@nirvaan](https://forum.celo.org/u/nirvaan)\ **Post date:** [August 25, 2023, 6:07pm UTC](https://forum.celo.org/t/centrifuge-deployment-on-celo/6405/7 "2023-08-25T18:07:38Z")
Thanks for your questions @Markus & @0xGoldo! We clarified these points on Celo Governance Call #35 earlier today but to summarize: 1. Due to the quick turnaround for development and time-sensitive nature of Centrifuge pool launches, disbursements are intentionally not split into milestones. The inaugural Centrifuge-Celo pool from Flowcarbon is planned for mid-October, so the grant duration is fairly short and does not necessitate multiple tranches. Note we added a “Reporting” section that outlines how Centrifuge will update the Celo community before, during, and after the grant. 2. Centrifuge initially started on Tinlake, a Polkadot parachain, and requires additional development to **natively** support new chains EVM or otherwise. More details can be found in this Github [repo](https://github.com/centrifuge/security/tree/main/audits) with past audits from Centrifuge. ---
**Author:** ![Patrick](https://sea2.discourse-cdn.com/flex020/user_avatar/forum.celo.org/patrick/32/6634_2.png) [@Patrick](https://forum.celo.org/u/Patrick)\ **Post date:** [August 25, 2023, 6:38pm UTC](https://forum.celo.org/t/centrifuge-deployment-on-celo/6405/8 "2023-08-25T18:38:52Z")
I’ve been following Centrifuge for a long time and I am generally supportive of launching on Celo because I think Centrifuge will find strong synergy with the Celo community. There is a finite quantity of CELO that can be spent from the community fund so it is important that funds are allocated as efficiently as possible. Have you put out an audit RFP to multiple firms? There are a lot of capable audit firms out there and $50k feels high for bear market conditions. Can you provide additional details for the $75k? For example: What sort of support do you anticipate will be needed, which roles/skillset do you anticipate will be needed to provide this support, how much time/effort do you expect based on prior years? What is the roadmap for upgrades looking like and how much extra work will be required to implement them on Celo vs. other supported chains? Can you give us a sense of the maintaince costs you’ve seen over the past 12 months on other chains? Thanks 🙏 ---
**Author:** ![LuukDAO](https://sea2.discourse-cdn.com/flex020/user_avatar/forum.celo.org/luukdao/32/6937_2.png) [@LuukDAO](https://forum.celo.org/u/LuukDAO)\ **Post date:** [August 25, 2023, 9:05pm UTC](https://forum.celo.org/t/centrifuge-deployment-on-celo/6405/9 "2023-08-25T21:05:25Z")
Hi @0xKhan - I have been following Centrifuge for some time and am eager to get more quality RWAs to Celo. The initial $25k for deployment on CELO seems reasonable and straightforward. The $50k for Audit does indeed seem on the high-end. I remember Celo had Auditing teams available to audit projects coming to Celo. I’ve already pinged some folks to check if this is still true. If not, I think it makes sense to get multiple quotes for this Audit, as competent teams may do it for less. The support and maintenance budget seems relatively high relative to the other line items. I would much rather see a business case where Centrifuge is confident it can make enough $ money to justify the resources spent on coming to Celo. Do you have an estimate on the amount of RWA you intend to bring to Celo and the revenue Centrifuge will generate from it? Another option in my POV would be lowering the duration of the support grant now - and potentially having a follow-up grant after 3-6 months for additional resources based on the progress made on Celo. Thanks in advance! ---
**Author:** ![alchemydc](https://sea2.discourse-cdn.com/flex020/user_avatar/forum.celo.org/alchemydc/32/8812_2.png) [@alchemydc](https://forum.celo.org/u/alchemydc)\ **Post date:** [August 25, 2023, 11:15pm UTC](https://forum.celo.org/t/centrifuge-deployment-on-celo/6405/10 "2023-08-25T23:15:40Z")
This is confusing. AFAICT there are numerous Centrifuge pools [already deployed on Ethereum](https://app.centrifuge.io/pools). ![image](https://us1.discourse-cdn.com/flex020/uploads/celo/original/2X/7/74f28bc9f62ae13bab6863a1f57f5713c5606766.png) The docs [refer to a plan](https://docs.centrifuge.io/getting-started/integrated-with-defi/) to create general purpose connectors to EVM compatible networks. The [audits you linked](https://github.com/centrifuge/security/tree/main/audits) mostly cover the Polkadot ecosystem deployments. Have any audits been done on the Centrifuge contracts deployed to Ethereum? I took a look at the [code for one of the deployed contracts](https://etherscan.io/address/0x55d86d51Ac3bcAB7ab7d2124931FbA106c8b60c7#code) on Ethereum and it appears to be pulling in a bunch of tinlake code, which looks to have been audited ([report here](https://dapp.org.uk/reports/tinlake.html)). Is this proposal essentially asking the Celo ecosystem to fund an audit of the EVM compatible deployment because none has yet been done? More clarity around the scope of the proposed audit would help. DC ---
**Author:** ![nirvaan](https://sea2.discourse-cdn.com/flex020/user_avatar/forum.celo.org/nirvaan/32/7242_2.png) [@nirvaan](https://forum.celo.org/u/nirvaan)\ **Post date:** [August 29, 2023, 1:02pm UTC](https://forum.celo.org/t/centrifuge-deployment-on-celo/6405/11 "2023-08-29T13:02:06Z")
Thanks @Patrick @LuukDAO @alchemydc for your comments! Responding to certain questions below to the best of my ability. 1. Audit RFP to multiple firms: > [@LuukDAO](#): > > The $50k for Audit does indeed seem on the high-end. I remember Celo had Auditing teams available to audit projects coming to Celo. I’ve already pinged some folks to check if this is still true. If not, I think it makes sense to get multiple quotes for this Audit, as competent teams may do it for less. As indicated on their website, Centrifuge has engagements with multiple audit firms including Trail of Bits, Security Research Labs (SRM), [dapp.org](http://dapp.org), Least Authority, and Consensys Diligence. To @LuukDAO’s point about getting support from Celo Foundation for the audit - we explored this option with @marek during and after governance call #35, but it is not available at this time. So the conclusion was to re-engage a top-tier audit firm who Centrifuge has already worked with. 1. Scope of deployment on Celo > [@alchemydc](#): > > The docs [refer to a plan](https://docs.centrifuge.io/getting-started/integrated-with-defi/) to create general purpose connectors to EVM compatible networks. > [@alchemydc](#): > > Is this proposal essentially asking the Celo ecosystem to fund an audit of the EVM compatible deployment because none has yet been done? Centrifuge “Connectors” will indeed enable assets originated on the Centrifuge chain to be integrated with EVM chains - however, this is still in development and requires additional work that would need to be audited, in order to support Celo in time for mid-October launch of Flowcarbon pool. Any deployment of Centrifuge on new chains increases the risk and security exposure. To prioritize Celo immediately, Centrifuge will be increasing the speed of deployments and thus will want more thorough auditing before we can safely launch this in production. To clarify: Tinlake is essentially the Centrifuge v1 product where pools where exclusively built on Ethereum mainnet. The Centrifuge Chain audits are available the same repo linked earlier, but in a different [folder](https://github.com/centrifuge/security/tree/main/audits/chain). 1. Plan after deployment > [@LuukDAO](#): > > Do you have an estimate on the amount of RWA you intend to bring to Celo and the revenue Centrifuge will generate from it? As of 8/28/23, Centrifuge has $23MM capacity for investment into existing pools. It will launch on Celo with a sizeable Flowcarbon pool, followed by pools from companies in Credit Collective that are not yet ready and outside Centrifuge’s control. Separately, based on my experience in governance since October '21, I have not seen projects asked to divulge their revenue stats and believe this is reasonable to omit. > [@Patrick](#): > > What sort of support do you anticipate will be needed, which roles/skillset do you anticipate will be needed to provide this support, how much time/effort do you expect based on prior years? > What is the roadmap for upgrades looking like and how much extra work will be required to implement them on Celo vs. other supported chains? Maintaining deployments of Centrifuge on multiple chains bears significant engineering costs, especially to manage any potential security incidents. Solidity engineering costs are high (~75k for a year is what you quickly get to). ---
**Author:** ![LuukDAO](https://sea2.discourse-cdn.com/flex020/user_avatar/forum.celo.org/luukdao/32/6937_2.png) [@LuukDAO](https://forum.celo.org/u/LuukDAO)\ **Post date:** [September 1, 2023, 3:53pm UTC](https://forum.celo.org/t/centrifuge-deployment-on-celo/6405/12 "2023-09-01T15:53:40Z")
Thanks for the clarification! Look forward to seeing the proposal up for vote. Hope to connect with the team at the RWA event in Berlin and learn more about the plans for Centrifuge on Celo! ---
**Author:** ![0xj4an-work](https://sea2.discourse-cdn.com/flex020/user_avatar/forum.celo.org/0xj4an-work/32/9565_2.png) [@0xj4an-work](https://forum.celo.org/u/0xj4an-work)\ **Post date:** [September 1, 2023, 6:33pm UTC](https://forum.celo.org/t/centrifuge-deployment-on-celo/6405/13 "2023-09-01T18:33:56Z")
Posting the link to the Github Repo here: > And I would suggest the members of the multisign _(@nirvaan, @TomerBa or @Tomer-Ba and Lucas)_ to post each one your respective address here for disclosure. Thanks again for this interesting proposal. ---
**Author:** ![nirvaan](https://sea2.discourse-cdn.com/flex020/user_avatar/forum.celo.org/nirvaan/32/7242_2.png) [@nirvaan](https://forum.celo.org/u/nirvaan)\ **Post date:** [September 3, 2023, 10:15pm UTC](https://forum.celo.org/t/centrifuge-deployment-on-celo/6405/14 "2023-09-03T22:15:26Z")
Verifying my wallet address and identity for governance: 0x42B4a02f79438D558AB33E326638ed752b94D187 ---
**Author:** ![Tomer-Ba](https://sea2.discourse-cdn.com/flex020/user_avatar/forum.celo.org/tomer-ba/32/6837_2.png) [@Tomer-Ba](https://forum.celo.org/u/Tomer-Ba)\ **Post date:** [September 4, 2023, 9:10am UTC](https://forum.celo.org/t/centrifuge-deployment-on-celo/6405/15 "2023-09-04T09:10:11Z")
Verifying my wallet address and identity for governance: 0xEBe109b76b606C19DDC890fFcA3e992e6a0fB13D ---
**Author:** ![lucasvo](https://avatars.discourse-cdn.com/v4/letter/l/db5fbb/32.png) [@lucasvo](https://forum.celo.org/u/lucasvo)\ **Post date:** [September 5, 2023, 5:43pm UTC](https://forum.celo.org/t/centrifuge-deployment-on-celo/6405/16 "2023-09-05T17:43:45Z")
Verifying Centrifuge wallet address and identity for governance: 0xB778545ae66D2A126f3981944aed1AD8B4bEB794 ---
**Author:** ![lucasvo](https://avatars.discourse-cdn.com/v4/letter/l/db5fbb/32.png) [@lucasvo](https://forum.celo.org/u/lucasvo)\ **Post date:** [September 7, 2023, 2:19pm UTC](https://forum.celo.org/t/centrifuge-deployment-on-celo/6405/17 "2023-09-07T14:19:18Z")
Hello everyone, We’re very excited to see the community support this proposal. With the acceptance we have started looking planning the engineering effort and will be updating here on a regular basis on the next steps and the progress we make on launching on Celo. As outlined in the initial proposal our deployment timeline for the rollout is by end of October making Celo one of our first deployments of the newest iteration of Centrifuge. We’re looking forward to this launch. If you have any questions, don’t hesitate to reach out! ---
**Author:** ![tim](https://sea2.discourse-cdn.com/flex020/user_avatar/forum.celo.org/tim/32/9_2.png) [@tim](https://forum.celo.org/u/tim)\ **Post date:** [September 7, 2023, 8:52pm UTC](https://forum.celo.org/t/centrifuge-deployment-on-celo/6405/18 "2023-09-07T20:52:14Z")
Congratulations @lucasvo – Looking forward to the deployment! cLabs is here to help all Celo builders: please let us know if you need any assistance. ---
**Author:** ![Marcelo](https://sea2.discourse-cdn.com/flex020/user_avatar/forum.celo.org/marcelo/32/7418_2.png) [@Marcelo](https://forum.celo.org/u/Marcelo)\ **Post date:** [September 19, 2023, 3:58pm UTC](https://forum.celo.org/t/centrifuge-deployment-on-celo/6405/19 "2023-09-19T15:58:55Z")
Wow! This is huge! Congratulations!