Proposal: Add Support for Centrifuge Real-World Asset Money Market

Thanks @lea! Yeah, that answers my questions. Excited to see how this partnership evolves…

1 Like

Tomorrow, Oct 15th 7:30pm CET, we’re hosting an AMA session about Centrifuge Tinlake. It will give an overview of how our tech stack works and will go into detail about Tinlake v3 features. This will be relevant for our RWA money market proposal. Would be a great opportunity for us to receive direct questions from you. Link to the call is here: https://discourse.centrifuge.io/t/community-call-october-15th-revolving-pools-and-tinlake-v3/291

3 Likes

Cool, where can I vote for this?

1 Like

Hi @amadeoB, the community will be able to vote on this as soon as the governance process is in full effect. I expect that to happen very soon but I’ll leave the exact time line to the Aave team :wink: In the meantime I’d love to get comments and/or questions from the community so we’ll be able to incorporate the feedback.

1 Like

is there any info about it ? couldn’t assist

1 Like

This is a great sign for Aave V2!

I truly believe Aave is in the unique position of being able to pioneer the bridging of DeFi and the masses. Excited to see more real world assets brought on board, perhaps starting with Centrifuge!

I really like the idea behind Tinlake. Definitely on board for a well analyzed and implemented “real” asset money market.

4 Likes

We’re hosting another Community Call this Thursday, November 12th 7:30 PM CET / 1:30PM ET introducing two new asset classes on Tinlake. If you want to get a bit of a better understanding what type of RWAs are being financed - and could potentially be used as collateral on Aave - join in: https://discourse.centrifuge.io/t/community-call-november-12th-who-is-live-on-tinlake/385

4 Likes

That’s lively sense of humour

Bridging off-chain assets -> on-chain literally opens a whole new world for DeFi and AAVE of course. There are of course challenges when bridging both worlds, as the Ethereum chain is not aware of what happens off-chain, and therefore this requires either the use of Oracles or workarounds.

The Tinlake workaround built by Centrifuge is great, because:
A. It takes non-fungible financial assets (unique receipts) and makes them “fungible” (see here)
B. Tinlake financial assets are split in two: DROP (safer) and TIN (riskier)

This proposal to add Tinlake’s DROP asset makes sense towards this journey to bridge the two worlds. I expect the supply volume will be relatively small in the beginning, like ZRX and BAT, which is a great way to test things out, but then the potential is huge.

I think this should move to a proper AIP!

While everybody seems excited about increasing usability of Aave and bridging RWA to defi. I do not see discussions on

  1. Aave pricing for these RWA money market.
  2. Any vetting criteria of what kind of AO and RWA should be accepted by Aave
  3. A lot of Aave are staked into the SM so how does these RWA pools impacting on SM

Questions like these typically takes long discussions in real world so I wonder how these discussions will be conducted, moderated (if any) and accepted here in a community dao.

2 Likes

I must have missed your comment here @Monsoon, apologies. I agree with you. These are exactly the type of discussions we’d like to have. I proposed to introduce the concept in one of the Aave community calls and take in feedback and questions. We have also been working closely with the Maker risk team to be able to safely onboard RWAs to MCD. While the setup with Aave is a slightly different one there are some processes that can be applied here as well. But we’d like to start the conversation on how we can formalize the risk assessment and pricing of the proposed assets.

REALT tokens are now vailable on Uniswap, Airswap and Catswap, has considerable liqudity, so there are market price feed, AAVE can take a lead on this space, bring RWA into crypto lending and borrowing (DeFI). We can certainly starting at with 300-400 collaterisation to minimise the risk and test the market demand. - just think about first mover advantage.

Hey there, here’s a little update on what has been happening since we posted the initial proposal to add RWA to Aave.

We’ve had steady growth on Tinlake, meaning (1) the size of the individual pools has grown and (2) the number of pools on Tinlake has increased to 7 active pools financing different types of RWA collateral. The current TVL on Tinlake passed 5,6MM and is steadily increasing. https://tinlake.info/

The asset originators we work with are building their track record with full on-chain transparency regarding their origination and financing performance. You can find the details on https://tinlake.centrifuge.io/ under the “Asset” tab of each individual pool. (See New Silver as an example below)

If you want to get a better understanding of who our partners are and the different asset types being financed on Tinlake check out our Centrifuge forum: Asset Originator Intros - Centrifuge

Structure

All investors on Tinlake go through KYC checks and sign a subscription document before being able to deposit their funds into a Tinlake pool (find more info on our legal setup here: https://developer.centrifuge.io/tinlake/further-information/offering-structure/ ).

When making Tinlake RWA available on Aave we are launching a pool of Tinlake pools where investors are able to get exposure not only to one single RWA pool but across several pools we will deploy a similar setup. Besides specifying the legal setup we’ve also started working on a first integration which we can hopefully share on Kovan soon.

5 Likes

@lea

Compute and storage of Tinlake is going to migrate to centrifuge chain eventually right?

How is this going to work with the integration with Aave? I know centrifuge is bridged with ethereum, but for example does interacting with Tinlake from Aave require (wrapped) Centrifuge tokens?

That’s a great question! Indeed, we want to move Tinlake to Centrifuge Chain at some point, although this won’t happen in the next few months. When this does happen, I think there would be a few potential options:

  1. The contracts for the market are deployed on Ethereum and we use a bridge to move wrapped DROP tokens onto Ethereum, and then deposit these as collateral into the market.
  2. If Centrifuge Chain becomes a parachain, it would also be possible to deploy the Aave market contracts to an EVM compatible parachain (like Moonbeam). Then, we could use Polkadot’s cross-chain communication layer to interact with the market.
  3. In theory, we could even make Centrifuge Chain EVM compatible, and deploy the Aave market contracts directly on the chain. This would remove any need for cross-chain communication.

All of this is still in an early state and changing rapidly, so we’ll have to wait and see what becomes the best choice for users.

1 Like

@jeroen_0 @lea

Can you guys drop an update on how far the progress is made for AAVE partnership and AMM?

2 Likes

They are probably enjoying some well deserved time off! ;)

(but I am also very very curious towards an update)

Having as little steps in between seems the best solution to me, isnt it supposed to be plug and play with the EVM pallet?

Or is it possible to borrow Moonbeam’s code?

Hey @Pats nice to see you here too! :) Have you checked this post here: ARC: Aave Centrifuge Permissioned "RWA" Market Proposal - #7 by thedoctor_j ? We’re preparing an Aave snapshot vote as a next step :)

Thanks @lea for an update.