Thanks Larry. Also applaud your transparency.
To answer your questions re benefits
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#1 Develop Acala Starport pallet
This will essentially bridge Compound Chain and Polkadot, allowing accepted Polkadot assets to be uploaded to Compound Chain as collaterals, and allowing CASH to be downloaded and used in Polkadot ecosystem. Polkadot in itself is layer-0, so it relys on parachains to deploy business logics like bridging and smart contract executions etc. Acala as the DeFi hub parachain offers a set of DeFi primitives such as stablecoin lending, AMM DeX and liquid staking, and therefore provides good asset variety and liquidity as a Starport to Compound. -
#2 Develop Offchain Worker & Message Passing
This will essentially allow any Substrate-based chain be able to bridge to the Compound Chain. This is certainly a common-good development that will enable many subsequent bridges to Compound Chain, although each Starport deployment will still subject to governance, the barrier of deployment is significantly lowered. -
#3 Integration & Oracle
This will ensure Compound Cash App works seamlessly with Acala to bring new assets (e.g. DOT and LDOT) on as collaterals, so as to download CASH to Acala. I can foresee this milestone can be broken down further to add economic and risk analysis for each new collaterals namely DOT and LDOT, and set up the initial parameters so as ongoing monitoring and adjustment procedure. -
#4 integrating Compound Cash into Acala Dapps
This essentially exposes the Compound Chain money market services to the Acala (and therefore Polkadot) users and community. In addition, integrating CASH into Acala DApps, using it to pay for transaction/gas fees will further the demand and utility of this new asset. We believe this will result in a positive trickle-up effect for the three communities: Compound, Acala and Polkadot.
To answer your questions re challenges
As we are one of the earliest and most experienced Substrate development teams, and after a thorough study of Compound Chain’s source code, we don’t foresee technical challenges. We do however anticipate potential challenges in setting up a brand new collateral asset class (DOT and LDOT). We will likely need help from experts like Gaunlet and the Labs team to help profile the new assets; in addition, we also need help to bootstrap initial liquidity - we can come up with liquidity programs, but it’s likely that it’d need support from multi-parties to make it work effectively.
Other than that, in order to add CASH as a fee token on Acala, which would be a great use case of CASH and benefits the Compound community, we will need help to add CASH liquidity to our AMM DeX which is used as a unified fee settlement layer. Again we can come up with liquidity programs, it’s likely to be an effort of multi-parties.
Re the grants program
We’re open to the suggestions and would also like to have a further discussion to learn more about the grants program. We’ll report back once having a chat with you.
Again thanks for the warm welcome and feedback~