*Fix Interlay Escrow Rewards*

The "Escrow" pallet is distributing too many rewards per block because it incorrectly updated the `RewardPerBlock` variable at the start of "Year 2". This is calculated using the following formula:

`rewardPerBlock = totalBalance / emissionPeriod`

Where `totalBalance` is the total amount of INTR we have scheduled to distribute over the `emissionPeriod` (one year). The implementation actually uses the total balance assigned to `EscrowAnnuityAccount` which also includes unclaimed INTR already distributed. This isn't an issue for the Vault rewards because we transfer those funds from `VaultAnnuityAccount` to `FeeAccount`, but in this case we then do not have enough funds to fulfil the expected rewards.

:link: https://interlay.subsquare.io/democracy/proposals/0

The subsequent adjustment to the Vault rewards added more rewards to the Escrow (staking) annuity pallet - this is what distributes rewards each block. This also updated the `RewardPerBlock` incorrectly because it used the previous (invalid) figure and additionally didn't align until the end of the epoch as intended.

:link: https://interlay.subsquare.io/democracy/proposals/86

This proposal corrects the remaining calls previously scheduled in the "Activate INTR Staking Rewards" proposal to do the following:

- at block 4400000, reduce `RewardPerBlock` to 261148158032 - the remaining surplus is distributed over the remaining blocks of year 2
- at year 3 set `RewardPerBlock` to 47564687975, don't update for year 4
- transfer year 3 and 4 rewards as before
- set `RewardPerBlock` to zero at end of year 4 to stop distributing rewards

Interlay is a platform that distributes rewards to users who hold a certain cryptocurrency called INTR.

The "Escrow" pallet, which distributes rewards, was giving out too many rewards per block because of a mistake in how the rewards were calculated.

To fix this mistake, Interlay proposed a plan to adjust the rewards given out over the next few years.

The plan involves reducing the rewards given out in year 2, setting a specific reward amount for year 3, and then stopping rewards altogether at the end of year 4.

This plan will help ensure that rewards are distributed fairly and correctly to users who hold INTR.

Fix Interlay Escrow Rewards

SubSquare is a governance platform for substrate based blockchains, and we have been continually maintaining the deployments for interlay and kintsugi. We propose a treasury spend to support the work.

## Work scope

- Daily devops/monitor work to keep the deployment well running.
- Track and update common dependencies like polkadot api.
- Part of delivered enhanment features
    - Governance data statistics.
    - New design and new layout.
    - Calendar feature with which we can see history/future events with a calendar view.
    - Notifications via telegram.
    - `cmd+k` feature for better navigation.
    - Votes bubble chart.
- Part of development plans
    - Support creating preimages and proposals.
    - Account multisigs support.
    - Off-chain discussion data decentralization.

## Cost

We request $600 per month, and we've reduced it by $200 compared to previous proposals.
| Item        | detail            | Cost   |
|-------------|-------------------|--------|
| Interlay maintenance | 2023.03 - 2023.12 | $6,000 |
| Total      | $0.017/INTR by EMA7 price on subscan | 352,941 INTR |


SubSquare is a platform for blockchain governance. They take care of the technical side of things for other companies like interlay and kintsugi. They want to be paid $600 per month to keep doing this work. They have done some extra work to improve their platform, like adding a calendar feature and notifications. They also have some plans for future improvements, like making it easier for multiple people to manage an account. They have lowered their price by $200 compared to previous proposals.

Subsquare maintenance request from 03.2023 to 12.2023

# Summary

This proposal aims to create a vDOT-INTR Pair, allowing users to set vDOT as a Fee Token.
After [integrating vDOT into the Interlay lending market](https://interlay.subsquare.io/posts/36), we discovered that several users were encountering difficulties in covering the INTR parachain fees following the transfer of vDOT from Bifrost to Interlay. Consequently, the establishment of a vDOT-INTR Pair can significantly enhance the user experience and facilitate the Interlay lending market in attracting a larger pool of liquidity from vDOT holders.

Henceforth, users will be able to conveniently utilize vDOT on the Interlay App for fee payments.

- Interlay is a lending market where people can borrow and lend money.
- They want to make it easier for people to pay fees on their platform.
- They found out that some people were having trouble paying fees with a type of money called vDOT.
- They want to make it so people can use vDOT to pay fees more easily.
- This will make it easier for people who have vDOT to use the Interlay App.

Creating a vDOT-INTR Pair

# Set Trading Fees

As of now, traders don’t pay any fees to liquidity providers (and the DAO). Setting fees to zero was a decision made when the DeFi hub launched, to attract traders and volume. Now that the INTR rewards stopped and were not renewed, traders are left with no yield at all. 

However, the “bring-your-own-fee” feature, that allows users to do transactions on Interlay and pay the fee in other currencies than INTR, requires to have at least a small amount of liquidity for the supported tokens (iBTC, USDT, INTR). That means we should encourage liquidity provider to supply a minimal level of liquidity for the existing pairs by setting a swap fee. 

Since the transaction fees on Interlay are in the sub-cent range, there will likely be low volume on the pools, which would require a rather high fee. Given the small fees for such swaps, users of that feature will likely be very insensitive to swap fees as the absolute amount of fees is still very low. Hence, it is suggested to charge a 1% swap fee for this service which will all go directly to the liquidity providers. 

To provide a specific example, the current fee for a swap on Interlay is 0.01128 INTR, which corresponds to $0.00018048 (given an INTR price of $0.016 as of 31.10.2023). Therefore, the additional trading fee would cost the user $0.000001805, which is an order of magnitude that users will most likely not even recognize.

Simultaneously, setting a relatively high swap fee adds additional utility for INTR since it will be cheaper for users to pay transactions in INTR rather than using other tokens.

- Traders don't currently pay fees on Interlay
- This was done to attract traders and volume
- Now that INTR rewards have stopped, traders have no yield
- A new feature allows users to pay fees in other currencies
- A 1% swap fee is suggested to encourage liquidity providers and add utility for INTR.

Set Trading Fees

# Summary

As discussed in the [off-chain poll](https://interlay.subsquare.io/posts/24), this proposal suggests to redirect 50% of the current vault rewards to the staking pallet. This should drastically increase the staking APY and make it more attractive for vault operators and others to stake their INTR rather than selling it. If this desired effect will materialize, it will likely also have a positive effect on the INTR price as there will be the same demand from buyer but fewer supply from seller. This in turn would led to higher APYs for vaults and could potentially start a flywheel effect.

# Tech Specifics

Specifically, this proposal will increase the block rewards for staking from 5.6557541660 INTR per block by 21.4146228004 INTR to 27.0703769664 INTR. Simultaneously it will reduce the block rewards for vaults from 42.8292456008 INTR by 21.4146228004 INTR to 21.4146228004 INTR.

Because the reward payouts for vaults and staking were already scheduled for first 4 years at genesis, the next change of the schedule will be in approximately 272 days. To avoid conflicts/overlaps, the redirected rewards will be distributed over 1,921,635 blocks, which corresponds roughly to 266 days, allowing for some changes in block time to avoid distributing rewards past that scheduled change.

- The proposal suggests redirecting 50% of current vault rewards to staking pallet.
- This will increase staking APY and make it more attractive for vault operators and others to stake their INTR.
- This could lead to a positive effect on the INTR price and higher APYs for vaults.
- The block rewards for staking will increase from 5.6557541660 INTR per block to 27.0703769664 INTR.
- The block rewards for vaults will reduce from 42.8292456008 INTR to 21.4146228004 INTR.

Changing vault reward structure

**Remove Inflation and add INTR to Omnipool**

Based on the results of the [latest poll](https://interlay.subsquare.io/posts/35), this proposal suggests to:

- Remove the 2% inflation of INTR token
- Deposit 12.5 m INTR into HydraDX’s Omnipool

**How deposit into Omnipool works**

- This proposal will send 12.5 m INTR from Interlay’s DAO treasury to the Omnipool account with the address `7L53bUTBbfuj14UpdCNPwmgzzHSsrsTWBHX5pys32mVWM3C1` on Hydra chain
- After receiving the transaction, Hydra’s council will launch trading in a 3h fast-tracked motion
- Hydra’s community has already approved an [on-chain remark](https://hydradx.subsquare.io/democracy/referenda/82) to do this
- Lastly, the LP position will be attributed to Interlay DAO’s parachain sibling account `7LCt6dFsW7xwUutdYad3oeQ1zfQvZ9THXbBupWLqpd72bmnM` on Hydra chain

Here is a summary of the SubSquare post content:

- A proposal has been made to remove the 2% inflation of INTR token and deposit 12.5 m INTR into HydraDX’s Omnipool.
- To deposit into Omnipool, 12.5 m INTR will be sent from Interlay’s DAO treasury to the Omnipool account on Hydra chain.
- After receiving the transaction, Hydra’s council will launch trading in a 3h fast-tracked motion.
- Hydra’s community has already approved an on-chain remark to do this.
- Lastly, the LP position will be attributed to Interlay DAO’s parachain sibling account on Hydra chain.

Remove Inflation and add INTR to Omnipool

Fixes a critical bug which could lead to an imbalance in the liquidation vault. This proposal should be fast-tracked by the Technical Committee (TC).

Upgrade to runtime 1.25.3

Based on the results of the latest poll (https://interlay.subsquare.io/posts/35), This proposal suggests to renew the rewards as described in the discussion post for another three month and redirect the residual amount to staking. 

**PLEASE NOTE THAT THIS PROPOSAL IS ONLY FOR RENEWAL OF DEFI HUB INCENTIVES.**

The renewal of the DeFi hub incentives is a pressing one, the previous incentives which ran out this week has resulted in massive outflows of capital. Therefore, this proposal has been put forth first.

This proposal **DOESN'T** provide for action items related to vault rewards or depositing 12.5m INTR token into HydraDX’s Omnipool. Separate proposals for the same will be put forth very soon.

1. A new proposal has been made to renew the rewards for DeFi hub incentives for another three months.
2. The previous incentives have run out, causing a large amount of capital to leave.
3. This proposal only focuses on renewing the DeFi hub incentives, not vault rewards or depositing tokens.
4. The residual amount will be redirected to staking.
5. Separate proposals for vault rewards and depositing tokens will be made soon.

DeFi Hub Incentives

# About us

[Bifrost](https://bifrost.finance/) is a dedicated liquid staking Layer 1 built on Substrate powered by Polkadot providing non custodial decentralized cross-chain liquid tokens for staked assets. By leveraging off Polkadots cross-consensus message format (XCM) it can provide standardized cross-chain liquid staking solutions for multiple chains notably Polkadot (vDOT), Kusama (vKSM) and the first LST solutions on both Moonbeam (vGLMR), Moonriver (vMOVR) as well as other multiple chains (currently 6+ chains). Bifrost facilitates the issuance and deployment of liquid staked assets (“vTokens' '), allowing users to earn staking rewards while participating in DeFi, such as liquidity provisioning on DEXs, and lending/borrowing. Bifrost aims to offer a seamless staking and DeFi experience for PoS users and enable developers to build innovative applications around Bifrosts’ liquid staking derivatives (vTokens).

# Summary

This proposal aims to add vDOT (Bifrost DOT LST) to the Interlay lend market, preparing for the following use cases:

- Increase base income for lenders who deposit IBTC, DOT, or any other asset as collateral in the lend market.
- Activate leveraging staking by rotating borrowed DOT stake to vDOT and depositing it as collateral.

Therefore, this proposal will perform the following functions (Check details at the "Technical Details" section below):

- Enable vDOT as collateral in the lending market.
- Add vDOT lending market.
- Activate vDOT lending market.

## Why vDOT

vDOT is a liquid staking token issued by the Bifrost SLP pallet. It represents staked DOT on the Polkadot Relay, but it is also a fungible and tradable asset. vDOT has unique features such as Fast-Unstake, Stable Swap, Automatic validator selection, Cross-chain voting, and deposit for harvest in DeFi. Additionally, vDOT naturally earns yield through staking rewards as its value appreciates. For more details about vDOT, please refer to the links below:

vDOT Application: https://bifrost.app/vstaking/vDOT

![Untitled](https://i.ibb.co/b5Pkfgq/Untitled-18.png)

vDOT logic behind: https://docs.bifrost.finance/builders/liquid-staking-slp/vdot

OpenGov+Automatic Validator Selection: [https://docs.bifrost.finance/builders/liquid-staking-slp/vdot#vdot-validator-se](https://docs.bifrost.finance/builders/liquid-staking-slp/vdot#vdot-validator-set)

### Recent Developments and Collaborations

- **The growth of vDOT in last month**: The total vDOT volume staking has exceeded **1,450,000**, with a monthly growth rate of 11.23%.
- **Utilities of vDOT in cross-chain scenarios**: Bifrost has completed the asset registration of all vToken on the Moonbeam and Moonriver network. Users can use the Moonbeam App to interact with xcvDOT and transfer assets between Bifrost and Moonbeam. Moonbeam App bridge: https://apps.moonbeam.network/moonbeam/xcm
- **vToken voting in relay-chain**: This feature allows users to participate in Kusama’s OpenGov governance (vDOT will be the next) on Bifrost parachain. It is currently in the final testing phase and is expected to be launched on the Bifrost Dapp next month. For more details, please refer to: https://x.com/0xLurpis/status/1706326874421661763?s=20
- **vToken Stable Swap**: It utilizes the LST Stable Pool to achieve low slippage swaps between LST and its original token. All vTokens on Bifrost Kusama have been adapted for Stable Swap. https://bifrost.app/swap?tab=pool
- **vDOT Vault on Interlay**: Interlay has proposed vDOT as collateral for Vault creation, allowing anyone to choose vDOT as collateral when establishing an IBTC Vault on Interlay. The staking reward feature of vDOT will enhance the collateral income for Vault creators, enriching the revenue attributes of Interlay Vault collateral.
- **vDOT minted by HydraDX Treasury, via XCM**: HydraDX used the treasury address to cross-chain invoke Bifrost SLPx and minted 81,800 vDOT, which was automatically transferred back to HydraDX to enrich the treasury revenue. This transaction was completed in one step with the help of SLPx. https://twitter.com/TheDolpha/status/1706358817225646177

### What benefits for Interlay lend market?

- **Increase passive income for lenders and expand the TVL of the lend market.**

vDOT naturally earns rewards from DOT staking, therefore vDOT lenders can earn DOT staking APY + Lend APY + INTR APR.

- **Introduce Leveraging Staking, combining staking rewards.**

Loop lending is the underlying logic for leveraging staking. This means that it requires repeated operations of collateral depositing, borrowing, and deposit again to increase leverage while increasing your LTV. By stacking the leverage of vDOT, higher DOT staking returns can be obtained. For example, if the leverage of vDOT is expanded to 1.5 times, the APY of vDOT staking will also expand 1.5 times for your principal (actual situation may involve factors such as interest rates).

How to establish Leveraging Staking?

1. First, collateralize IBTC, DOT, vDOT or USDT in the Lend Market.
2. Borrow DOT and mint to vDOT.
3. Collateralize the borrowed vDOT in the Lend Market and repeat the above steps.

Below is an example of DOT leveraging staking by using vDOT 

(*The following charts are for the purpose of understanding the principle of leveraging and do not take into account details such as floating lend rates, utilization rate or live exchange rate and etc*.)

![Untitled](https://i.ibb.co/DL2rcg3/image-15.png)

Based on the assumed lending market conditions mentioned above, we can derive the following results under the 65% LTV:

![Untitled](https://i.ibb.co/SrsMzhY/image-14.png)

As described in the chart above, leveraging user can achieve an approximate total APY of 50% with a near "1" health factor by combining vDOT lending positions and leveraging DOT's staking APY multiple times.

# Technical Details
Extrinsic: https://polkadot.js.org/apps/?rpc=wss%3A%2F%2Frpc-interlay.luckyfriday.io%2F#/extrinsics/decode/0x0302086400010300000030390a00d0bf0b00a086010020a107000000ee042cfc430f00000000000000000000000000000000000000000000000000000000000000c52ebca2b10000000000000000000000b2d3595bf006000000000000000000350c00010000c16ff286230000000000000000000000c16ff28623000000000000000000020400000064010103000000

Bifrost is a platform that allows people to earn rewards by staking their cryptocurrency. They have a special type of token called vDOT that represents staked DOT on the Polkadot Relay. vDOT can be used to earn rewards while participating in DeFi. Interlay is a lending market that allows people to earn money by lending their cryptocurrency. They want to add vDOT to their lending market so people can earn even more money. By using vDOT, people can also do something called leveraging staking, which means they can earn even more rewards by borrowing and lending vDOT.

Adding vDOT into Interlay Lend Market

This proposal batches the HMRP accept from Polkadex to Interlay and requests to open a HMRP channel from Interlay to Polkadex. This will allow assets to be transferred in between Interlay and Polkadex and open a path towards more use cases for iBTC and more collateral assets for iBTC.

Open XCM channel with Polkadex - Part 1/1 (Accept & Request HRMP)

# Summary

The goal of this proposal is to:
- Immediately increase mint capacity for iBTC and improve the economical efficiency of the bridge
- Reduce risk for vaults to make capital provision cheaper

Therefore, the proposal suggests to:
- Update collateral thresholds with new model and new price data to partially reduce thresholds and increase total mint capacity by up to 15%
- Re-arrangement of the threshold increments, based on changes of collateral analysis model to provide more safety margin for vaults **without** increasing the risk of under-collateralization of iBTC

# Reduce Vault Risk

**Background:** [Interlay’s analysis repository](https://github.com/interlay/collateralization-analysis/tree/master) used to estimate the collateral thresholds, applies a value at risk (VaR) approach which uses the analytical method (based on monte carlo simulation) as well as the historical method (based on actual historical data). VaR scales by the square root of time (imagine a horizontal parabola) , such that the result of the analysis would always estimate the largest increment in VaR from the 1:1 peg to the liquidation threshold. These increments would become smaller, such that the relative and absolute difference between the `secure mint threshold` and the `premium redeem threshold` was relatively small. Hence, vaults have a small margin for price changes of their collateral to BTC and run the risk of quickly receiving premium redeem requests.

**Change:** This shifted some risk from the protocol towards the vaults and was a conservative approach in order to protect the protocol (iBTC peg) as much as possible. By now we know how swift users are, when it comes to 'selflessly protect' the protocol by requesting premium redeems against vaults or make liquidations. Therefore, it seems to be suitable to give vaults a better margin of safety before getting penalized. This can be done by systematically rearranging the increments of the thresholds in reverse order.

**Result:** As you can see in the table below, the `secure mint thresholds` under the old and new model remain the same, just the distribution of the increments between each threshold are shifted, so that there is more margin for price movements before falling under the `premium redeem threshold` .  It is important to make clear that this does **NOT** change the likelihood of the 1:1 peg breaking. 

![Thresholds](https://pin.ski/3LED5b8)

# Update Collateral Thresholds

You may have noticed that the thresholds in the table above are different from the current ones for both models. As new price data becomes available, it is sound to re-run the analysis to incorporate these new information into the estimation for the thresholds.

Below are the suggest thresholds and system ceilings for the tokens, based on the results of [Interlay’s analysis repository](https://github.com/interlay/collateralization-analysis/tree/master).

### Current Thresholds

| Collateral | Liquidation Threshold | Premium Redeem Threshold | Secure Mint Threshold | System Collateral Ceiling |
| --- | --- | --- | --- | --- |
| DOT | 125% | 140% | 155% | 2,450,000 |
| qDOT | 125% | 140% | 155% | 1,000,000 |
| USDT | 135% | 145% | 155% | 2,000,000 |
| qUSDT | 135% | 145% | 155% | 600,000 |
| vDOT | 140% | 155% | 165% | 500,000 |

### Suggested Thresholds

| Collateral | Liquidation Threshold | Premium Redeem Threshold | Secure Mint Threshold | System Collateral Ceiling |
| --- | --- | --- | --- | --- |
| DOT | 105% | 115% | 130% | 2,450,000 |
| qDOT | 105% | 115% | 130% | 1,000,000 |
| USDT | 105% | 115% | 150% | 2,000,000 |
| qUSDT | 105% | 115% | 150% | 600,000 |
| vDOT | 105% | 115% | 135% | 500,000 |

SubSquare has proposed a plan to increase the mint capacity for iBTC and make the bridge more efficient. They want to reduce the risk for vaults so that it is cheaper for them to provide capital. The proposal suggests updating collateral thresholds with a new model and new price data to reduce thresholds and increase total mint capacity by up to 15%. They also suggest rearranging the threshold increments to provide more safety margin for vaults without increasing the risk of under-collateralization of iBTC. The proposal does not change the likelihood of the 1:1 peg breaking. The suggested collateral thresholds and system ceilings for the tokens are shown in tables.

#80 Update Vault Collateral Thresholds

## Summary

This proposal aims to enable Interlay to register Bifrost Native Coin (BNC) to increase the tokens available for incentivizing the Interlay lending market.

Bifrost and Interlay have completed the activation of the HRMP channel. Currently, Interlay has added Bifrost Liquid Staking DOT: vDOT to the Vault creation. Subsequently, Bifrost will collaborate with Interlay to promote the use of vDOT in the lending market. Registering BNC will facilitate further incentives for the vDOT lending market by Bifrost, attracting more DOT collateral.

## Asset Indexes

Asset Name: Bifrost Native Coin
Asset Symbol: BNC
Decimals: 12
MinimalBalance: 10,000,000,000
MultiLocation:
`
{
          parents: 1,
          interior: {
            X2: [
              { Parachain: 2001 },
              {
                GeneralKey: {
                  length: 2,
                  data: 0x0001000000000000000000000000000000000000000000000000000000000000,
                }
`

# Bifrost.Finance

[Bifrost](https://bifrost.finance/) is a dedicated liquid staking Layer 1 built on Substrate powered by Polkadot providing non custodial decentralized cross-chain liquid tokens for staked assets. By leveraging off Polkadots cross-consensus message format (XCM) it can provide standardized cross-chain liquid staking solutions for multiple chains notably Polkadot (vDOT), Kusama (vKSM) and the first LST solutions on both Moonbeam (vGLMR), Moonriver (vMOVR) as well as other multiple chains (currently 6+ chains). Bifrost facilitates the issuance and deployment of liquid staked assets (“vTokens' '), allowing users to earn staking rewards while participating in DeFi, such as liquidity provisioning on DEXs, and lending/borrowing. Bifrost aims to offer a seamless staking and DeFi experience for PoS users and enable developers to build innovative applications around Bifrosts’ liquid staking derivatives (vTokens).

- Interlay and Bifrost are working together to increase the tokens available for incentivizing the Interlay lending market.
- Bifrost has activated the HRMP channel and Interlay has added Bifrost Liquid Staking DOT: vDOT to the Vault creation.
- Registering Bifrost Native Coin (BNC) will facilitate further incentives for the vDOT lending market by Bifrost, attracting more DOT collateral.
- Bifrost is a liquid staking Layer 1 built on Substrate powered by Polkadot providing non-custodial decentralized cross-chain liquid tokens for staked assets.
- Bifrost aims to offer a seamless staking and DeFi experience for PoS users and enable developers to build innovative applications around Bifrost's liquid staking derivatives (vTokens).

Register BNC on Interlay

Updates all of the wormhole token symbols to include a `.wh` suffix. Requesting TC fast-track.

Update wormhole asset names

We had an issue with Vaults on Kintsugi, due to a failed migration pruned nodes skipped some payments which led to an invalid wallet state. To avoid this happening on Interlay we are reverting that change but including a patched release (which is compatible with 1.25.2) so we can enact the latest runtime upgrade.

**Requesting TC fast-track.**

Override the pending clients release

**Interlay Proponent:** wd9GK7gH7ug5J2h6XNbfUhiLLXZohNsZE4yCahnbmXwdcw8jN

**Date:** 25th September 2023

**Total Requested INTR:** 169,802.7888 INTR

**Original Discussion Post:**  <https://interlay.subsquare.io/post/23>

**Short description:** Ongoing & advanced costs for the running of high performance, scalable, and reliable public infrastructure in Q3 of 2023 for Interlay.

**Full Proposal:** [https://docs.google.com/document/d/1oNaipVmkqSYqyolLHfmCZh3icKBWGFzCDYreoqDU95c/edit?usp=sharing](https://docs.google.com/document/d/1oNaipVmkqSYqyolLHfmCZh3icKBWGFzCDYreoqDU95c/edit?usp=sharing)

* * * * *

Why are Public RPC Services Needed for Interlay
===============================================

Setting up blockchain infrastructure is difficult, time consuming, and expensive:

-   It requires a level of server development expertise that many do not have

-   It's costly to run a full node nearly continuously, especially when your dApp's traffic is low and inconsistent. 

-   Running production level infrastructure is especially tricky. You need to autoscale quickly to handle bursty traffic, and you want to provide services in different regions around the world to provide low latency services - all of this is incredibly costly, but comes with significant economies of scale for a provider.

-   DevOps requires constant attention - time that would be better spent elsewhere building.

A shared node API service helps mitigate these barriers of entry to trying accessing a new protocol by reducing all these costs to near zero. We manage all the nodes for our users and distribute them across the world (with intelligent routing) to achieve global scalability from day 1, we monitor each node and ensure that they meet certain service levels, and we have the expertise and scale to handle production workloads and high peak traffic.

In summary, we try to reduce the pain of getting started on  Interlay Network and minimise the costs of accessing secure nodes while traffic from your dApp is low. When you grow, you can continue to use our shared API service, or we also [provide access to one click deploy dedicated Interlay nodes](https://onfinality.io/networks/interlay)  to any cloud of your choosing.

OnFinality's RPC Service
========================

As Polkadot's largest and most cost efficient infrastructure provider, we provide scalable free public API services for Interlay. Since our inception in November 2020 we have a long track record focussing on three key areas; performance/reliability, providing more value from our Ultimate API service, and cost optimisation.

### Performance/Reliability

OnFinality is operationally striving for a minimum of 99.99% reliability, which means less than an hour of downtime each year. We are the only RPC provider to guarantee this with actual financial penalties (see appendix A). We proudly display and share our [90 day uptime statistics](https://status.onfinality.io/) for each network publicly [here](https://status.onfinality.io/uptime/r40wwpclbwzm).

We have invested hugely into a team dedicated to optimising our application gateway and caching layer to ensure that we provide the fastest possible service for our customers. We run clusters in 5 different regions (North Virginia, Frankfurt, Tokyo, Singapore, and Australia) and across 4 different cloud providers (AWS, GCP, Alicloud, and our own dedicated hardware) to ensure that we are fault tolerant to any single region or cloud provider ceasing service.

### Providing more value from our Ultimate API service

For customers that do sign up for API keys, we've been adding more and more features to provide a better experience. [Geolocation insights](https://blog.onfinality.io/onfinality-adds-geolocation-insights-for-dapps-and-api-apps/) provide statistics about where in the world communities are to help influence decisions around where to expand infrastructure and to view the effectiveness of regional BD initiatives.

OnFinality is the only provider with [Trace API](https://blog.onfinality.io/onfinality-launches-trace-api-for-unprecedented-visibility-into-your-dapps/) support, a huge and essential enhancement allowing unprecedented visibility for dApp builders. Trace API captures and records vital information otherwise not available through regular RPC methods and extrinsics (such as complete XCM transfer records and complete list of balance changes). These APIs are essential in order for [developers like Polkaholic](https://blog.onfinality.io/onfinalitys-new-trace-api-helping-colorful-notion-get-trace-data-from-over-40-substrate-chains/) and Parity's data team to parse and understand XCM transactions.

We've recently added support for 14 more Polkadot parachains as well as Osmosis, Evmos, Harmony, Arbitrum, Optimism, Fuse, DFK Chain, Celo, and Klaytn from outside the ecosystem. With over 100 supported networks, OnFinality is now the largest RPC provider worldwide (in terms of networks supported), and our ongoing expansion helps to bring more and more developers  into the Polkadot ecosystem.

### Cost Optimisation

OnFinality is very conscious about providing a strong level of support for Polkadot/Kusama at an extremely competitive price. In Q2 as we had the lowest cost per million responses across all of the major RPC providers that lodged a proposal to the Polkadot treasury ([source](https://docs.google.com/spreadsheets/d/1Utw2HfS7I5Gpyhrl9ejuj0CrQ4AcChGFteXdw0a8tro/edit#gid=0)).

Cost saving measurement has been a significant focus on behalf of our customers, with advanced rate limiting controls implemented. We can, for example, rate limit each client on a burst and sustained basis and based on the request methods that they are calling (e.g. each state_traceBlock request is rate limited 45x more than chain_getBlock), [read more about these advanced rate limiting tools that we've developed here](https://documentation.onfinality.io/support/public-rate-limits).

We continue to provide generous public API endpoints for over 40 different networks for common-good applications, while restricting access to high volume users that abuse the free service funded by this treasury.

We've [developed and shared our approach towards service sustainability](https://polkadot.polkassembly.io/post/1270), with the introduction of a 'Paid API Revenue Share Discount' scheme. In this scheme OnFinality pools the revenue from customers that pay for higher API pricing plans and distributes this revenue pool to partners that currently pay for and own each API endpoint proportionally based on the number of paid API requests that go to that API endpoint.

### Service Details

In the last 3 months (2023-06-01 and 2023-08-31) our Interlay API service has:
Served a total of 122 million (122,440,872) responses
Accumulated over 310 GB of data egress 
The highest daily total was 1.8  million responses (1,856,982)  in a single 24 hour period
Our rolling 7 day average at the end of this period was over 1.5 million responses each day
All time totals for Interlay is 973,295,947 (970 million) since March, 2022
At the end of this period the 90 day uptime for Interlay was 99.95%. You can always see live data of our API service on our public status page.

### Costings

We are using a fixed price to allow us to bill in advance and to simplify the administration of this proposal, as well as provide cost clarity to both parties. This proposal includes combined running costs for our infrastructure for Interlay  for all of Q3 (July, August, September) 2023. 

**The total combined running cost is USD $1,380.** This is all inclusive of capital and operating expenses, administration time from OnFinality DevOps, onboarding costs, backup costs, and all other monitoring and right-sizing by our team.

For a breakdown of costings and more details, read the full proposal here:
[https://docs.google.com/document/d/1oNaipVmkqSYqyolLHfmCZh3icKBWGFzCDYreoqDU95c/edit?usp=sharing](https://docs.google.com/document/d/1oNaipVmkqSYqyolLHfmCZh3icKBWGFzCDYreoqDU95c/edit?usp=sharing)

Interlay is a blockchain infrastructure that needs public RPC services to function. OnFinality provides these services to reduce the costs of running a full node and to ensure global scalability. OnFinality guarantees 99.99% reliability and provides more value from its Ultimate API service. It also focuses on cost optimization and provides advanced rate limiting controls. In the last three months, OnFinality's Interlay API service has served a total of 122 million responses. The total combined running cost for OnFinality's infrastructure for Interlay for Q3 2023 is USD $1,380.

OnFinality High Performance Public Infrastructure (Q3 2023)

# Proposal Content

This proposal registers the DAI, TBTC, WETH, WBNB, USDC, WBTC token to the foreign asset registry, so that in the future these tokens can be received via the Moonbeam wormhole bridge. It also registers GLMR, which will be necessary to interact with said bridge.

Adding the tokens now would allow to have a UI ready in 3 weeks from now to transfer these assets onto Interlay and back.

This proposal does not yet propose what to do with these assets on the Interlay chain itself, and this will require follow-up proposals.

# Use Case

The primary use case for this proposal is to provide a decentralized on and off-ramp for BTC and wBTC on Ethereum through Interlay via iBTC. Users would mint iBTC by depositing BTC and then swapping the iBTC to wBTC. On the reverse, wBTC would be swapped to iBTC and then redeemed for BTC.
With renBTC being out of the market, there is currently little choice to swap BTC for wBTC or wBTC to BTC. Having a decentralized on and off-ramp for BTC/wBTC enables the Interlay network to collect transaction fees in INTR as well as protocol fees on the bridge (if bridge fees are enabled - requires an extra governance proposal) and the DEX (if an iBTC/wBTC pool is enabled - requires an extra governance proposal).

This proposal proposes to add the assets to the Interlay chain. However, it unlocks many use cases that will increase usability for the Interlay network and the iBTC asset. Each of these use cases is subject to its governance vote.

# Security

As Wormhole is a centralized bridge, it comes with counterparty risk. Adding the assets to the registry itself does not add them to any of the bridge, DEX, or lending protocols. There needs to be a discussion to what extent the assets should be added to the Interlay protocols and at which ceilings in the follow-up proposals.

- This proposal suggests adding some tokens to a registry so that they can be used in the future.
- The tokens are DAI, TBTC, WETH, WBNB, USDC, WBTC, and GLMR.
- This will allow people to transfer these tokens onto Interlay and back.
- The main use case is to provide a way to swap BTC and wBTC on Ethereum through Interlay via iBTC.
- There are some risks involved, so there needs to be more discussion before adding the tokens to the Interlay protocols.

Adding Wormhole Assets to the Runtime

**Interlay Proponent:** wd9GK7gH7ug5J2h6XNbfUhiLLXZohNsZE4yCahnbmXwdcw8jN

**Date:** 10th September 2023

**Total Requested INTR:** 278,529.4287 INTR

**Original Discussion Post:** <https://interlay.subsquare.io/post/23>

**Short description:** Ongoing & advanced costs for the running of high performance, scalable, and reliable public infrastructure in Q3 and Q4 of 2023 for Interlay.

**Full Proposal:** [https://docs.google.com/document/d/1TxbEUYzBnP2OJ8ABmaz5kYmjxjP0gEcyxcfd99IYwVk/edit?usp=sharing](https://docs.google.com/document/d/1TxbEUYzBnP2OJ8ABmaz5kYmjxjP0gEcyxcfd99IYwVk/edit?usp=sharing)

* * * * *

Why are Public RPC Services Needed for Interlay
===============================================

Setting up blockchain infrastructure is difficult, time consuming, and expensive:

-   It requires a level of server development expertise that many do not have

-   It's costly to run a full node nearly continuously, especially when your dApp's traffic is low and inconsistent. 

-   Running production level infrastructure is especially tricky. You need to autoscale quickly to handle bursty traffic, and you want to provide services in different regions around the world to provide low latency services - all of this is incredibly costly, but comes with significant economies of scale for a provider.

-   DevOps requires constant attention - time that would be better spent elsewhere building.

A shared node API service helps mitigate these barriers of entry to trying accessing a new protocol by reducing all these costs to near zero. We manage all the nodes for our users and distribute them across the world (with intelligent routing) to achieve global scalability from day 1, we monitor each node and ensure that they meet certain service levels, and we have the expertise and scale to handle production workloads and high peak traffic.

In summary, we try to reduce the pain of getting started on  Interlay Network and minimise the costs of accessing secure nodes while traffic from your dApp is low. When you grow, you can continue to use our shared API service, or we also [provide access to one click deploy dedicated Interlay nodes](https://onfinality.io/networks/interlay)  to any cloud of your choosing.

OnFinality's RPC Service
========================

As Polkadot's largest and most cost efficient infrastructure provider, we provide scalable free public API services for Interlay. Since our inception in November 2020 we have a long track record focussing on three key areas; performance/reliability, providing more value from our Ultimate API service, and cost optimisation.

### Performance/Reliability

OnFinality is operationally striving for a minimum of 99.99% reliability, which means less than an hour of downtime each year. We are the only RPC provider to guarantee this with actual financial penalties (see appendix A). We proudly display and share our [90 day uptime statistics](https://status.onfinality.io/) for each network publicly [here](https://status.onfinality.io/uptime/r40wwpclbwzm).

We have invested hugely into a team dedicated to optimising our application gateway and caching layer to ensure that we provide the fastest possible service for our customers. We run clusters in 5 different regions (North Virginia, Frankfurt, Tokyo, Singapore, and Australia) and across 4 different cloud providers (AWS, GCP, Alicloud, and our own dedicated hardware) to ensure that we are fault tolerant to any single region or cloud provider ceasing service.

### Providing more value from our Ultimate API service

For customers that do sign up for API keys, we've been adding more and more features to provide a better experience. [Geolocation insights](https://blog.onfinality.io/onfinality-adds-geolocation-insights-for-dapps-and-api-apps/) provide statistics about where in the world communities are to help influence decisions around where to expand infrastructure and to view the effectiveness of regional BD initiatives.

OnFinality is the only provider with [Trace API](https://blog.onfinality.io/onfinality-launches-trace-api-for-unprecedented-visibility-into-your-dapps/) support, a huge and essential enhancement allowing unprecedented visibility for dApp builders. Trace API captures and records vital information otherwise not available through regular RPC methods and extrinsics (such as complete XCM transfer records and complete list of balance changes). These APIs are essential in order for [developers like Polkaholic](https://blog.onfinality.io/onfinalitys-new-trace-api-helping-colorful-notion-get-trace-data-from-over-40-substrate-chains/) and Parity's data team to parse and understand XCM transactions.

We've recently added support for 14 more Polkadot parachains as well as Osmosis, Evmos, Harmony, Arbitrum, Optimism, Fuse, DFK Chain, Celo, and Klaytn from outside the ecosystem. With over 100 supported networks, OnFinality is now the largest RPC provider worldwide (in terms of networks supported), and our ongoing expansion helps to bring more and more developers  into the Polkadot ecosystem.

### Cost Optimisation

OnFinality is very conscious about providing a strong level of support for Polkadot/Kusama at an extremely competitive price. In Q2 as we had the lowest cost per million responses across all of the major RPC providers that lodged a proposal to the Polkadot treasury ([source](https://docs.google.com/spreadsheets/d/1Utw2HfS7I5Gpyhrl9ejuj0CrQ4AcChGFteXdw0a8tro/edit#gid=0)).

Cost saving measurement has been a significant focus on behalf of our customers, with advanced rate limiting controls implemented. We can, for example, rate limit each client on a burst and sustained basis and based on the request methods that they are calling (e.g. each state_traceBlock request is rate limited 45x more than chain_getBlock), [read more about these advanced rate limiting tools that we've developed here](https://documentation.onfinality.io/support/public-rate-limits).

We continue to provide generous public API endpoints for over 40 different networks for common-good applications, while restricting access to high volume users that abuse the free service funded by this treasury.

We've [developed and shared our approach towards service sustainability](https://polkadot.polkassembly.io/post/1270), with the introduction of a 'Paid API Revenue Share Discount' scheme. In this scheme OnFinality pools the revenue from customers that pay for higher API pricing plans and distributes this revenue pool to partners that currently pay for and own each API endpoint proportionally based on the number of paid API requests that go to that API endpoint.

Service Details
===============

In the last 3 months (2023-06-01 and 2023-08-31) our Interlay API service has:

-   Served a total of 122 million (122,440,872) responses

-   Accumulated over 310 GB of data egress 

-   The highest daily total was 1.8  million responses (1,856,982)  in a single 24 hour period

-   Our rolling 7 day average at the end of this period was over 1.5 million responses each day

-   All time totals for Interlay is 973,295,947 (970 million) since March, 2022

At the end of this period the 90 day uptime for Interlay was 99.95%. You can always see live data of our API service on our public [status page](https://status.onfinality.io/).

Costings
--------

We are using a fixed price to allow us to bill in advance and to simplify the administration of this proposal, as well as provide cost clarity to both parties. This proposal includes combined running costs for our infrastructure for Interlay  for all of Q3 and Q4. **By paying 6 months up-front we will apply a 15% discount to our services.**

The total combined running cost is USD $2,780. This is all inclusive of capital and operating expenses, administration time from OnFinality DevOps, onboarding costs, backup costs, and all other monitoring and right-sizing by our team.

**For a breakdown of costings and other details, read the full proposal here:**
[https://docs.google.com/document/d/1TxbEUYzBnP2OJ8ABmaz5kYmjxjP0gEcyxcfd99IYwVk/edit?usp=sharing](https://docs.google.com/document/d/1TxbEUYzBnP2OJ8ABmaz5kYmjxjP0gEcyxcfd99IYwVk/edit?usp=sharing)

Interlay is a blockchain infrastructure that requires public RPC services to run. RPC services help reduce the cost of running a full node and provide a global scalability from day one. OnFinality is the largest and most cost-efficient infrastructure provider for Polkadot and provides scalable free public API services for Interlay. They have invested hugely into a team dedicated to optimizing their application gateway and caching layer to ensure that they provide the fastest possible service for their customers. OnFinality provides more value from their Ultimate API service by adding more features to provide a better experience. They also have advanced rate limiting controls implemented to save costs. In the last 3 months, their Interlay API service has served a total of 122 million responses. The total combined running cost for Interlay for all of Q3 and Q4 is USD $2,780. By paying 6 months up-front, OnFinality will apply a 15% discount to their services.

OnFinality High Performance Public Infrastructure (Q3 & Q4, 2023)

*vDOT Vaults on Interlay*

This proposal registers the vDOT asset from Bifrost and enables it to be used as collateral for Vaults. The thresholds are set to the same as those used for DOT:

- Secure: 155%
- Premium Redeem: 140%
- Liquidation: 125%

Vaults require a minimum of 25.6 vDOT to register and the system collateral ceiling is set to 500,000 vDOT.

vDOT Vaults on Interlay

*Runtime Upgrade 1.25.2*

Overview:
- Removed testnet runtimes and standalone node
- Automated benchmarks and added new weights
- BTC-Relay now requires coinbase proof to prevent SPV attack
- Resolved kintsugi syncing issues on startup
- Oracle failures are now handled separately (by currency)
- Added a new RPC to fetch the total stakeable funds
- Fixes a bug where Vaults could not withdraw all of their collateral
- Integrated the Frontier EVM and pallet-contracts (disabled for now)

For more details, please see the following:
- https://github.com/interlay/interbtc/releases/tag/1.25.2

The latest compatible clients release for this version is v1.23.2:
- https://github.com/interlay/interbtc-clients/releases/tag/1.23.2

This includes a wallet migration, please check the release notes to verify your installation.

SubSquare has released a new version of their software called Runtime Upgrade 1.25.2. Here are the changes:
- Removed testnet runtimes and standalone node
- Added new weights and automated benchmarks
- BTC-Relay now requires coinbase proof to prevent SPV attack
- Fixed syncing issues on startup and Oracle failures are now handled separately by currency
- Added a new RPC to fetch the total stakeable funds
- Fixed a bug where Vaults could not withdraw all of their collateral
- Integrated the Frontier EVM and pallet-contracts (disabled for now)
If you want to learn more about this update, you can visit the link provided. If you are using the software, make sure to check the release notes for the latest compatible client release, which includes a wallet migration.

Runtime Upgrade 1.25.2

**Interlay Proponent:** wd9GK7gH7ug5J2h6XNbfUhiLLXZohNsZE4yCahnbmXwdcw8jN\

**Date:** 24th August 2023

**Total Requested INTR:** 116,801.9623 INTR

**Original Discussion Post:**  <https://interlay.subsquare.io/post/23>

**Short description:** Ongoing costs for the running of high performance, scalable, and reliable public infrastructure for Interlay's Kintsugi Network.

**Full Proposal:** [https://docs.google.com/document/d/1Ank_Z5Q7qgDPvco_UKBbA0XkSPf69bnNNPvz12W5J7U/edit?usp=sharing](https://docs.google.com/document/d/1Ank_Z5Q7qgDPvco_UKBbA0XkSPf69bnNNPvz12W5J7U/edit?usp=sharing) 

Interlay Lodging Error:
===============

**The Interlay Q2 costs have been lodged in two proposals:**
1\. <https://interlay.subsquare.io/democracy/proposals/70>
2\. <https://interlay.subsquare.io/democracy/proposals/71>

**This is because there was a calculation error and we originally requested 11,680.1962 when the actual INTR amount required is 116,801.9623. Therefore the second proposal requests 105,121.7661 INTR to make up the rest of the amount left from the first proposal.**

Original Motivation
===================

Setting up blockchain infrastructure is difficult, time consuming, and expensive:

-   It requires a level of server development expertise that many do not have

-   It's costly to run a full node nearly continuously, especially when your dApp's traffic is low and inconsistent. 

-   Running production level infrastructure is especially tricky. You need to autoscale quickly to handle bursty traffic, and you want to provide services in different regions around the world to provide low latency services - all of this is incredibly costly, but comes with significant economies of scale for a provider.

-   DevOps requires constant attention - time that would be better spent elsewhere building.

A shared node API service helps mitigate these barriers of entry to trying accessing a new protocol by reducing all these costs to near zero. We manage all the nodes for our users and distribute them across the world (with intelligent routing) to achieve global scalability from day 1, we monitor each node and ensure that they meet certain service levels, and we have the expertise and scale to handle production workloads and high peak traffic.

In summary, we try to reduce the pain of getting started on the Interlay and Kintsugi Networks and minimise the costs of accessing secure nodes while traffic from your dApp is low. When you grow, you can continue to use our shared API service, or we also provide access to one click deploy [dedicated Kintsugi ](https://onfinality.io/networks/kintsugi)and [dedicated Interlay nodes](https://onfinality.io/networks/interlay)  to any cloud of your choosing.

Background on our RPC Service
=============================

Since inception in November 2020 we have made a large number of improvements to our Ultimate API service focussing on three key areas; performance/reliability, providing more value from our Ultimate API service, and cost optimisation.

### Performance/Reliability

OnFinality is operationally striving for a minimum of 99.99% reliability, which means less than an hour of downtime each year.  We proudly display and share our [90 day uptime statistics](https://status.onfinality.io/) for each network publicly [here](https://status.onfinality.io/uptime/r40wwpclbwzm).

We have invested hugely into a team dedicated to optimising our application gateway and caching layer to ensure that we provide the fastest possible service for our customers. We run clusters in 5 different regions (North Virginia, Frankfurt, Tokyo, Singapore, and Australia) and across 3 different cloud providers (AWS, GCP, Alicloud) to ensure that we are fault tolerant to any single region or cloud provider ceasing service.

### Providing more value from our Ultimate API service

For customers that do sign up for paid API keys, we've been adding more and more features to provide a better experience. [Geolocation insights](https://blog.onfinality.io/onfinality-adds-geolocation-insights-for-dapps-and-api-apps/) provide statistics about where in the world communities are to help influence decisions around where to expand infrastructure and to view the effectiveness of regional BD initiatives.  We can also now [automatically upsize the storage on nodes](https://blog.onfinality.io/onfinality-developer-update-auto-expand-storage-for-dedicated-nodes/) to prevent the risk of any downtime.

Finally, in Q2 of 2023 OnFinality [launched Trace API](https://blog.onfinality.io/onfinality-launches-trace-api-for-unprecedented-visibility-into-your-dapps/) support which was a huge enhancement allowing unprecedented visibility for dApp builders. Trace API captures and records vital information otherwise not available through regular RPC methods and extrinsics (such as complete XCM transfer records and complete list of balance changes). These APIs are essential in order for [developers like Polkaholic](https://blog.onfinality.io/onfinalitys-new-trace-api-helping-colorful-notion-get-trace-data-from-over-40-substrate-chains/) to parse and understand XCM transactions.

### Cost Optimisation

OnFinality is very conscious about providing a strong level of support for Interlay/Kintsugi  at an extremely competitive price. Cost saving measurement has been a significant focus on behalf of our customers, with advanced rate limiting controls implemented. We can, for example, rate limit each client on a burst and sustained basis and based on the request methods that they are calling (e.g. each state_traceBlock request is rate limited 45x more than chain_getBlock), [read more about these advanced rate limiting tools that we've developed here](https://documentation.onfinality.io/support/public-rate-limits).

Meaning that we can continue to provide generous public API endpoints for over 40 different networks for common-good applications, but restrict access to high volume users that abuse this free service. We've been able to manage our costs significantly on behalf of our customers as a result. 

We've [developed and shared our approach towards service sustainability](https://polkadot.polkassembly.io/post/1270), with the introduction of a 'Paid API Revenue Share Discount' scheme. In this scheme OnFinality pools the revenue from customers that pay for higher API pricing plans and distributes this revenue pool to partners that currently pay for and own each API endpoint proportionally based on the number of paid API requests that go to that API endpoint. The scheme was introduced in Q1 of 2023 and resulted in a discount to [Interlay's Q1 treasury proposal](https://docs.google.com/document/d/1nUjQxqfNXfJz0ZCEoVRjDFqzKTFReLxRhZX6SBKaU48/edit?usp=sharing) of $153.63.

Our cost optimisation efforts were validated in Q1 as we had the lowest cost per million responses across all of the major RPC providers that lodged a proposal to the Polkadot treasury. You can see how our costs compared to other RPC providers in the ecosystem during Q1 [here](https://docs.google.com/spreadsheets/d/1Utw2HfS7I5Gpyhrl9ejuj0CrQ4AcChGFteXdw0a8tro/edit#gid=0).

Service Details
===============

During Q2 of 2023, we've made a number of new improvements to our Ultimate API service that address performance/reliability, features, and costs.

Additionally, we are proud to have delivered some key service enhancements that benefit the Polkadot ecosystem in the last quarter. This includes:

-   [Launched Trace API](https://blog.onfinality.io/onfinality-launches-trace-api-for-unprecedented-visibility-into-your-dapps/) allowing unprecedented visibility for dApp builders. Trace API captures and records vital information otherwise not available through regular RPC methods and extrinsics (such as complete XCM transfer records and complete list of balance changes). These APIs are essential in order for [developers like Polkaholic](https://blog.onfinality.io/onfinalitys-new-trace-api-helping-colorful-notion-get-trace-data-from-over-40-substrate-chains/) to parse and understand XCM transactions.

-   [Geographical Insights](https://blog.onfinality.io/onfinality-adds-geolocation-insights-for-dapps-and-api-apps/) - API key owners can view statistics about where in the world your community are to help influence decisions around where to expand infrastructure and to view the effectiveness of regional BD initiatives

-   [Clarify our IP address handling](https://blog.onfinality.io/how-does-onfinality-deal-with-personal-information/) - OnFinality does not, and will never, correlate or link specific wallet addresses to the IP address or request origin making the RPC request

-   Added support for a number of new networks, including Anmol, HydraDX, Equilibrium, as well as Osmosis, Evmos, Harmony, Arbitrum, Optimism, Fuse, DFK Chain, Celo, and Klaytn from outside the ecosystem. OnFinality is a new one stop shop for all of your RPC needs from multiple ecosystems.

-   A variety of improvements to our health metric collection tools and automated recovery scripts to ensure our 99.9% SLA is exceeded.

-   Scale improvements to our team, processes, and systems to allow us to provide this same service to any  substrate team

Our customers are building cross-chain wallets, running some of the largest block explorers, and are indexing multiple networks - they've all benefited from these API access restrictions, improved monitoring, and the larger number of supported Polkadot chains. You can always see live data on our API service on our public [status page](https://status.onfinality.io/).

Service Details
===============

OnFinality provides a scalable and reliable public RPC API service for both Interlay and Kintsugi for a fixed price of $4,000 per calendar quarter. This is all inclusive of capital and operating expenses, administration time from OnFinality DevOps, onboarding costs, backup costs, and all other monitoring and right-sizing by our team.

In this proposal we request $2,000 for the services performed in Q2 of 2023 (April, May, June) from the Interlay treasury. NB: $2,000 has already been paid out by the Kintsugi treasury for Q2 services.

**Full Proposal:** [https://docs.google.com/document/d/1Ank_Z5Q7qgDPvco_UKBbA0XkSPf69bnNNPvz12W5J7U/edit?usp=sharing](https://docs.google.com/document/d/1Ank_Z5Q7qgDPvco_UKBbA0XkSPf69bnNNPvz12W5J7U/edit?usp=sharing)

Interlay is requesting funds to cover the costs of running high performance, scalable, and reliable public infrastructure for their Kintsugi Network. They made a mistake in their initial request and are now requesting 116,801.9623 INTR. 

Setting up blockchain infrastructure is difficult, time-consuming, and expensive. Interlay wants to reduce the pain of getting started on the Interlay and Kintsugi Networks and minimize the costs of accessing secure nodes while traffic from your dApp is low. 

OnFinality is a public RPC API service that provides a scalable and reliable service for both Interlay and Kintsugi for a fixed price of $4,000 per calendar quarter. They have made a number of improvements to their Ultimate API service that address performance/reliability, features, and costs. 

They have launched Trace API, allowing unprecedented visibility for dApp builders. They have also added support for a number of new networks, including Anmol, HydraDX, Equilibrium, as well as Osmosis, Evmos, Harmony, Arbitrum, Optimism, Fuse, DFK Chain, Celo, and Klaytn from outside the ecosystem. 

In this proposal, Interlay is requesting $2,000 for the services performed in Q2 of 2023 (April, May, June) from the Interlay treasury.

OnFinality High Performance Public Infrastructure (Q2, 2023) pt.2

**Interlay Proponent:** wd9GK7gH7ug5J2h6XNbfUhiLLXZohNsZE4yCahnbmXwdcw8jN\

**Date:** 24th August 2023

**Total Requested INTR:**  116,801.9623 INTR

**Original Discussion Post:**  <https://interlay.subsquare.io/post/23>

**Short description:** Ongoing costs for the running of high performance, scalable, and reliable public infrastructure for Interlay's Kintsugi Network.

**Full Proposal:** [https://docs.google.com/document/d/1Ank_Z5Q7qgDPvco_UKBbA0XkSPf69bnNNPvz12W5J7U/edit?usp=sharing](https://docs.google.com/document/d/1Ank_Z5Q7qgDPvco_UKBbA0XkSPf69bnNNPvz12W5J7U/edit?usp=sharing)

Interlay Lodging Error:
===============

**The Interlay Q2 costs have been lodged in two proposals:**
1\. <https://interlay.subsquare.io/democracy/proposals/70>
2\. <https://interlay.subsquare.io/democracy/proposals/71>

**This is because there was a calculation error and we originally requested 11,680.1962 when the actual INTR amount required is 116,801.9623. Therefore the second proposal requests 105,121.7661 INTR to make up the rest of the amount left from the first proposal. **

Original Motivation
===================

Setting up blockchain infrastructure is difficult, time consuming, and expensive:

-   It requires a level of server development expertise that many do not have

-   It's costly to run a full node nearly continuously, especially when your dApp's traffic is low and inconsistent. 

-   Running production level infrastructure is especially tricky. You need to autoscale quickly to handle bursty traffic, and you want to provide services in different regions around the world to provide low latency services - all of this is incredibly costly, but comes with significant economies of scale for a provider.

-   DevOps requires constant attention - time that would be better spent elsewhere building.

A shared node API service helps mitigate these barriers of entry to trying accessing a new protocol by reducing all these costs to near zero. We manage all the nodes for our users and distribute them across the world (with intelligent routing) to achieve global scalability from day 1, we monitor each node and ensure that they meet certain service levels, and we have the expertise and scale to handle production workloads and high peak traffic.

In summary, we try to reduce the pain of getting started on the Interlay and Kintsugi Networks and minimise the costs of accessing secure nodes while traffic from your dApp is low. When you grow, you can continue to use our shared API service, or we also provide access to one click deploy [dedicated Kintsugi ](https://onfinality.io/networks/kintsugi)and [dedicated Interlay nodes](https://onfinality.io/networks/interlay)  to any cloud of your choosing.

Background on our RPC Service
=============================

Since inception in November 2020 we have made a large number of improvements to our Ultimate API service focussing on three key areas; performance/reliability, providing more value from our Ultimate API service, and cost optimisation.

### Performance/Reliability

OnFinality is operationally striving for a minimum of 99.99% reliability, which means less than an hour of downtime each year.  We proudly display and share our [90 day uptime statistics](https://status.onfinality.io/) for each network publicly [here](https://status.onfinality.io/uptime/r40wwpclbwzm).

We have invested hugely into a team dedicated to optimising our application gateway and caching layer to ensure that we provide the fastest possible service for our customers. We run clusters in 5 different regions (North Virginia, Frankfurt, Tokyo, Singapore, and Australia) and across 3 different cloud providers (AWS, GCP, Alicloud) to ensure that we are fault tolerant to any single region or cloud provider ceasing service.

### Providing more value from our Ultimate API service

For customers that do sign up for paid API keys, we've been adding more and more features to provide a better experience. [Geolocation insights](https://blog.onfinality.io/onfinality-adds-geolocation-insights-for-dapps-and-api-apps/) provide statistics about where in the world communities are to help influence decisions around where to expand infrastructure and to view the effectiveness of regional BD initiatives.  We can also now [automatically upsize the storage on nodes](https://blog.onfinality.io/onfinality-developer-update-auto-expand-storage-for-dedicated-nodes/) to prevent the risk of any downtime.

Finally, in Q2 of 2023 OnFinality [launched Trace API](https://blog.onfinality.io/onfinality-launches-trace-api-for-unprecedented-visibility-into-your-dapps/) support which was a huge enhancement allowing unprecedented visibility for dApp builders. Trace API captures and records vital information otherwise not available through regular RPC methods and extrinsics (such as complete XCM transfer records and complete list of balance changes). These APIs are essential in order for [developers like Polkaholic](https://blog.onfinality.io/onfinalitys-new-trace-api-helping-colorful-notion-get-trace-data-from-over-40-substrate-chains/) to parse and understand XCM transactions.

### Cost Optimisation

OnFinality is very conscious about providing a strong level of support for Interlay/Kintsugi  at an extremely competitive price. Cost saving measurement has been a significant focus on behalf of our customers, with advanced rate limiting controls implemented. We can, for example, rate limit each client on a burst and sustained basis and based on the request methods that they are calling (e.g. each state_traceBlock request is rate limited 45x more than chain_getBlock), [read more about these advanced rate limiting tools that we've developed here](https://documentation.onfinality.io/support/public-rate-limits).

Meaning that we can continue to provide generous public API endpoints for over 40 different networks for common-good applications, but restrict access to high volume users that abuse this free service. We've been able to manage our costs significantly on behalf of our customers as a result. 

We've [developed and shared our approach towards service sustainability](https://polkadot.polkassembly.io/post/1270), with the introduction of a 'Paid API Revenue Share Discount' scheme. In this scheme OnFinality pools the revenue from customers that pay for higher API pricing plans and distributes this revenue pool to partners that currently pay for and own each API endpoint proportionally based on the number of paid API requests that go to that API endpoint. The scheme was introduced in Q1 of 2023 and resulted in a discount to [Interlay's Q1 treasury proposal](https://docs.google.com/document/d/1nUjQxqfNXfJz0ZCEoVRjDFqzKTFReLxRhZX6SBKaU48/edit?usp=sharing) of $153.63.

Our cost optimisation efforts were validated in Q1 as we had the lowest cost per million responses across all of the major RPC providers that lodged a proposal to the Polkadot treasury. You can see how our costs compared to other RPC providers in the ecosystem during Q1 [here](https://docs.google.com/spreadsheets/d/1Utw2HfS7I5Gpyhrl9ejuj0CrQ4AcChGFteXdw0a8tro/edit#gid=0)

Service Details
===============

During Q2 of 2023, we've made a number of new improvements to our Ultimate API service that address performance/reliability, features, and costs.

Additionally, we are proud to have delivered some key service enhancements that benefit the Polkadot ecosystem in the last quarter. This includes:

-   [Launched Trace API](https://blog.onfinality.io/onfinality-launches-trace-api-for-unprecedented-visibility-into-your-dapps/) allowing unprecedented visibility for dApp builders. Trace API captures and records vital information otherwise not available through regular RPC methods and extrinsics (such as complete XCM transfer records and complete list of balance changes). These APIs are essential in order for [developers like Polkaholic](https://blog.onfinality.io/onfinalitys-new-trace-api-helping-colorful-notion-get-trace-data-from-over-40-substrate-chains/) to parse and understand XCM transactions.

-   [Geographical Insights](https://blog.onfinality.io/onfinality-adds-geolocation-insights-for-dapps-and-api-apps/) - API key owners can view statistics about where in the world your community are to help influence decisions around where to expand infrastructure and to view the effectiveness of regional BD initiatives

-   [Clarify our IP address handling](https://blog.onfinality.io/how-does-onfinality-deal-with-personal-information/) - OnFinality does not, and will never, correlate or link specific wallet addresses to the IP address or request origin making the RPC request

-   Added support for a number of new networks, including Anmol, HydraDX, Equilibrium, as well as Osmosis, Evmos, Harmony, Arbitrum, Optimism, Fuse, DFK Chain, Celo, and Klaytn from outside the ecosystem. OnFinality is a new one stop shop for all of your RPC needs from multiple ecosystems.

-   A variety of improvements to our health metric collection tools and automated recovery scripts to ensure our 99.9% SLA is exceeded.

-   Scale improvements to our team, processes, and systems to allow us to provide this same service to any  substrate team

Our customers are building cross-chain wallets, running some of the largest block explorers, and are indexing multiple networks - they've all benefited from these API access restrictions, improved monitoring, and the larger number of supported Polkadot chains. You can always see live data on our API service on our public [status page](https://status.onfinality.io/).

Costings
===============

OnFinality provides a scalable and reliable public RPC API service for both Interlay and Kintsugi for a fixed price of $4,000 per calendar quarter. This is all inclusive of capital and operating expenses, administration time from OnFinality DevOps, onboarding costs, backup costs, and all other monitoring and right-sizing by our team.

In this proposal we request $2,000 for the services performed in Q2 of 2023 (April, May, June) from the Interlay treasury. NB: $2,000 has already been paid out by the Kintsugi treasury for Q2 services.

**Full Proposal:** [https://docs.google.com/document/d/1Ank_Z5Q7qgDPvco_UKBbA0XkSPf69bnNNPvz12W5J7U/edit?usp=sharing](https://docs.google.com/document/d/1Ank_Z5Q7qgDPvco_UKBbA0XkSPf69bnNNPvz12W5J7U/edit?usp=sharing)

Interlay is requesting 116,801.9623 INTR for ongoing costs to run high performance, scalable, and reliable public infrastructure for their Kintsugi Network. They made a calculation error and originally requested 11,680.1962 INTR. They have invested in a team to optimize their application gateway and caching layer to provide the fastest possible service for their customers. They have also added more features to provide a better experience for customers who sign up for paid API keys. OnFinality provides a scalable and reliable public RPC API service for both Interlay and Kintsugi for a fixed price of $4,000 per calendar quarter. They are requesting $2,000 for the services performed in Q2 of 2023.

OnFinality High Performance Public Infrastructure (Q2, 2023) pt.1

This proposal registers the DAI, TBTC, WETH, WBNB, USDC, WBTC token to the foreign asset registry, so that in the future these tokens can be received via the Moonbeam wormhole bridge. It also registers GLMR, which will be necessary to interact with said bridge.

Register Wormhole Assets

Ignore

Original Title: **Enable qDOT and qUSDT as collateral for lnterlay Vaults**
Original Proposal: [#66](https://interlay.subsquare.io/democracy/proposal/66)
Original Referendum: [#64](https://interlay.subsquare.io/democracy/referendum/64)

Previously passed but failed to execute due to a mistake in the proposal call. Values are the same as those originally agreed on but we removed the invalid call.

Resubmission of referendum #64

Adds support for qDOT and qUSDT vaults. Vaults can deposit DOT and/or USDT to the lending protocol on which they will receive qDOT and/or qUSDT. Instead of locking the qDOT/qUSDT in the lending market, they can use it as collateral for their Vaults as described here: https://docs.interlay.io/#/vault/multi-collateral?id=locking-lending-tokens-like-qdot-or-qusdt-as-collateral

This enables Vaults to earn interest from lending and vault operation at the same time.

>Thresholds for qDOT
Secure: 155%
Premium redeem: 140%
Liquidation: 125%
Ceiling: 150k USD equivalent at current exchange rate

> Thresholds for qUSDT
Secure: 155%
Premium redeem: 145%
Liquidation: 135%
Ceiling: 150k USD equivalent at current exchange rate

- SubSquare has added support for qDOT and qUSDT vaults.
- Vaults can deposit DOT and/or USDT to the lending protocol and receive qDOT and/or qUSDT.
- qDOT/qUSDT can be used as collateral for Vaults, allowing them to earn interest from lending and vault operation at the same time.
- There are different thresholds for qDOT and qUSDT, including secure, premium redeem, liquidation, and ceiling.
- The ceiling for both qDOT and qUSDT is 150k USD equivalent at the current exchange rate.

Enable qDOT and qUSDT as collateral for lnterlay Vaults

Payment Details:
Beneficiary Address: 5CyarovBr8e3uAauvGH7MhmT8wQPZ5W3eCEwM1fHoHf9LapE

Milestone funding size: 5000 USD worth of INTR (reference only)
Amount to make up for exchange rate difference: 75466 $INTR ( <--- this is what we are asking for)

Details:
https://docs.google.com/spreadsheets/d/1OMYNLSyRi3Jwm3INzCi-4Gf1l1O9tVordzEU3uNqrRE/edit?usp=sharing

Caron and Matías are trying to recover the difference between the grant amount and the value of the INTR that was eventually paid out. 

We are providing as evidence the median price of INTR in the relevant weeks as follows:
https://docs.google.com/document/d/16duJk-hP6IloCJEy0BCPM29A6t50eth3pjSlW3kn9Kk/edit?usp=sharing

We politely request support by the Interlay community. 


- Caron and Matías need some money.
- They are trying to get back the difference between the grant amount and the value of the INTR that was paid out.
- They have evidence to show the price of INTR in the relevant weeks.
- They are asking for 75466 $INTR to make up for the exchange rate difference.
- They are asking for support from the Interlay community.

Recover Underpayments for Grant Work 

**Interlay Proponent:** wd9GK7gH7ug5J2h6XNbfUhiLLXZohNsZE4yCahnbmXwdcw8jN

**Date:** 16th July 2023

**Total Requested INTR:**  11,680.1962 INTR

**Original Discussion Post:**  <https://interlay.subsquare.io/post/23>

**Short description:** Ongoing costs for the running of high performance, scalable, and reliable public infrastructure for Interlay's Kintsugi Network.

**Full Proposal:** [https://docs.google.com/document/d/1Ank_Z5Q7qgDPvco_UKBbA0XkSPf69bnNNPvz12W5J7U/edit?usp=sharing](https://docs.google.com/document/d/1Ank_Z5Q7qgDPvco_UKBbA0XkSPf69bnNNPvz12W5J7U/edit?usp=sharing)

* * * * *

Original Motivation
===================

Setting up blockchain infrastructure is difficult, time consuming, and expensive:

-   It requires a level of server development expertise that many do not have

-   It's costly to run a full node nearly continuously, especially when your dApp's traffic is low and inconsistent. 

-   Running production level infrastructure is especially tricky. You need to autoscale quickly to handle bursty traffic, and you want to provide services in different regions around the world to provide low latency services - all of this is incredibly costly, but comes with significant economies of scale for a provider.

-   DevOps requires constant attention - time that would be better spent elsewhere building.

A shared node API service helps mitigate these barriers of entry to trying accessing a new protocol by reducing all these costs to near zero. We manage all the nodes for our users and distribute them across the world (with intelligent routing) to achieve global scalability from day 1, we monitor each node and ensure that they meet certain service levels, and we have the expertise and scale to handle production workloads and high peak traffic.

In summary, we try to reduce the pain of getting started on  Kintsugi Network and minimise the costs of accessing secure nodes while traffic from your dApp is low. When you grow, you can continue to use our shared API service, or we also [provide access to one click deploy dedicated Kintsugi nodes](https://onfinality.io/dedicated_nodes)  to any cloud of your choosing.

Background on our RPC Service
=============================

Since inception in November 2020 we have made a large number of improvements to our Ultimate API service focussing on three key areas; performance/reliability, providing more value from our Ultimate API service, and cost optimisation.

### Performance/Reliability

OnFinality is operationally striving for a minimum of 99.99% reliability, which means less than an hour of downtime each year.  We proudly display and share our [90 day uptime statistics](https://status.onfinality.io/) for each network publicly [here](https://status.onfinality.io/uptime/r40wwpclbwzm).

We have invested hugely into a team dedicated to optimising our application gateway and caching layer to ensure that we provide the fastest possible service for our customers. We run clusters in 5 different regions (North Virginia, Frankfurt, Tokyo, Singapore, and Australia) and across 3 different cloud providers (AWS, GCP, Alicloud) to ensure that we are fault tolerant to any single region or cloud provider ceasing service.

### Providing more value from our Ultimate API service

For customers that do sign up for paid API keys, we've been adding more and more features to provide a better experience. [Geolocation insights](https://blog.onfinality.io/onfinality-adds-geolocation-insights-for-dapps-and-api-apps/) provide statistics about where in the world communities are to help influence decisions around where to expand infrastructure and to view the effectiveness of regional BD initiatives.  We can also now [automatically upsize the storage on nodes](https://blog.onfinality.io/onfinality-developer-update-auto-expand-storage-for-dedicated-nodes/) to prevent the risk of any downtime.

Finally, in Q2 of 2023 OnFinality [launched Trace API](https://blog.onfinality.io/onfinality-launches-trace-api-for-unprecedented-visibility-into-your-dapps/) support which was a huge enhancement allowing unprecedented visibility for dApp builders. Trace API captures and records vital information otherwise not available through regular RPC methods and extrinsics (such as complete XCM transfer records and complete list of balance changes). These APIs are essential in order for [developers like Polkaholic](https://blog.onfinality.io/onfinalitys-new-trace-api-helping-colorful-notion-get-trace-data-from-over-40-substrate-chains/) to parse and understand XCM transactions.

### Cost Optimisation

OnFinality is very conscious about providing a strong level of support for Interlay/Kintsugi  at an extremely competitive price. Cost saving measurement has been a significant focus on behalf of our customers, with advanced rate limiting controls implemented. We can, for example, rate limit each client on a burst and sustained basis and based on the request methods that they are calling (e.g. each state_traceBlock request is rate limited 45x more than chain_getBlock), [read more about these advanced rate limiting tools that we've developed here](https://documentation.onfinality.io/support/public-rate-limits).

Meaning that we can continue to provide generous public API endpoints for over 40 different networks for common-good applications, but restrict access to high volume users that abuse this free service. We've been able to manage our costs significantly on behalf of our customers as a result. 

We've [developed and shared our approach towards service sustainability](https://polkadot.polkassembly.io/post/1270), with the introduction of a 'Paid API Revenue Share Discount' scheme. In this scheme OnFinality pools the revenue from customers that pay for higher API pricing plans and distributes this revenue pool to partners that currently pay for and own each API endpoint proportionally based on the number of paid API requests that go to that API endpoint. The scheme was introduced in Q1 of 2023 and resulted in a discount to [Interlay's Q1 treasury proposal](https://docs.google.com/document/d/1nUjQxqfNXfJz0ZCEoVRjDFqzKTFReLxRhZX6SBKaU48/edit?usp=sharing) of $153.63.

Our cost optimisation efforts were validated in Q1 as we had the lowest cost per million responses across all of the major RPC providers that lodged a proposal to the Polkadot treasury. You can see how our costs compared to other RPC providers in the ecosystem during Q1 [here](https://docs.google.com/spreadsheets/d/1Utw2HfS7I5Gpyhrl9ejuj0CrQ4AcChGFteXdw0a8tro/edit#gid=0).

Service Details
===============

During Q2 of 2023, we've made a number of new improvements to our Ultimate API service that address performance/reliability, features, and costs.

Additionally, we are proud to have delivered some key service enhancements that benefit the Polkadot ecosystem in the last quarter. This includes:

-   [Launched Trace API](https://blog.onfinality.io/onfinality-launches-trace-api-for-unprecedented-visibility-into-your-dapps/) allowing unprecedented visibility for dApp builders. Trace API captures and records vital information otherwise not available through regular RPC methods and extrinsics (such as complete XCM transfer records and complete list of balance changes). These APIs are essential in order for [developers like Polkaholic](https://blog.onfinality.io/onfinalitys-new-trace-api-helping-colorful-notion-get-trace-data-from-over-40-substrate-chains/) to parse and understand XCM transactions.

-   [Geographical Insights](https://blog.onfinality.io/onfinality-adds-geolocation-insights-for-dapps-and-api-apps/) - API key owners can view statistics about where in the world your community are to help influence decisions around where to expand infrastructure and to view the effectiveness of regional BD initiatives

-   [Clarify our IP address handling](https://blog.onfinality.io/how-does-onfinality-deal-with-personal-information/) - OnFinality does not, and will never, correlate or link specific wallet addresses to the IP address or request origin making the RPC request

-   Added support for a number of new networks, including Anmol, HydraDX, Equilibrium, as well as Osmosis, Evmos, Harmony, Arbitrum, Optimism, Fuse, DFK Chain, Celo, and Klaytn from outside the ecosystem. OnFinality is a new one stop shop for all of your RPC needs from multiple ecosystems.

-   A variety of improvements to our health metric collection tools and automated recovery scripts to ensure our 99.9% SLA is exceeded.

-   Scale improvements to our team, processes, and systems to allow us to provide this same service to any  substrate team

Our customers are building cross-chain wallets, running some of the largest block explorers, and are indexing multiple networks - they've all benefited from these API access restrictions, improved monitoring, and the larger number of supported Polkadot chains. You can always see live data on our API service on our public [status page](https://status.onfinality.io/).

Costings
--------

OnFinality provides a scalable and reliable public RPC API service for both Interlay and Kintsugi for a fixed price of $4,000 per calendar quarter. This is all inclusive of capital and operating expenses, administration time from OnFinality DevOps, onboarding costs, backup costs, and all other monitoring and right-sizing by our team.

In this proposal we request $4,000 for the services performed in Q2 of 2023 (April, May, June). As our services support both networks, each with similar usage, we will request $2,000 from the Interlay treasury and $2,000 from the Kintsugi treasury.

**Read the full proposal here:** [https://docs.google.com/document/d/1Ank_Z5Q7qgDPvco_UKBbA0XkSPf69bnNNPvz12W5J7U/edit?usp=sharing](https://docs.google.com/document/d/1Ank_Z5Q7qgDPvco_UKBbA0XkSPf69bnNNPvz12W5J7U/edit?usp=sharing)


Interlay is requesting 11,680.1962 INTR for the ongoing costs of running high performance, scalable, and reliable public infrastructure for their Kintsugi Network. OnFinality provides a shared node API service that helps reduce the costs of running a full node nearly continuously. They manage all the nodes for their users and distribute them across the world to achieve global scalability from day 1. OnFinality has made a large number of improvements to their Ultimate API service, including performance/reliability, providing more value from their Ultimate API service, and cost optimization. They have invested hugely into a team dedicated to optimizing their application gateway and caching layer to ensure that they provide the fastest possible service for their customers. OnFinality provides a scalable and reliable public RPC API service for both Interlay and Kintsugi for a fixed price of $4,000 per calendar quarter.

OnFinality High Performance Public Infrastructure (Q2, 2023)

Payment Details:
Beneficiary Address: 5CyarovBr8e3uAauvGH7MhmT8wQPZ5W3eCEwM1fHoHf9LapE

Milestone funding size: 2000 USD worth of INTR
INTR price 7 day average: $ 0.019
(Price fetch from Coingecko 2023-07-08 to 2023-07-15)

Milestone 2 Payment amount: 105260 INTR

Details including proof:
https://docs.google.com/document/d/1GDRavSyUU2qtLYZKF0bgWlb571cIPkGr2zXrKX_M6Lg/edit?usp=sharing


Interlay Grants Program - Milestone Payment 2 for RFP: Analytic Dashboard for Lending Market

Fixes an issue in the bring your own fees implementation. Swaps with 1 satoshi or 1 planck would fail.

**Release**
https://github.com/interlay/interbtc/releases/tag/1.24.0-hotfix2

**Changes**
https://github.com/interlay/interbtc/compare/1.24.0-hotfix...1.24.0-hotfix2

**Request to fast-track**
Since this is a fix of a bug of an existing functionality, we request fast-track by the TC.

Runtime Upgrade 1.24.0-hotifx2: Bring your own fees

Fixes the bring-your-own-fees feature for interlay that was incorrectly configured on the runtime.

This is a non-breaking release for the clients.

**Changes**
https://github.com/interlay/interbtc/compare/1.24.0...1.24.0-hotfix

**Request to fast-track**
Since this is a fix due to a misconfiguration, we request fast-track by the TC.

Runtime Upgrade 1.24.0-hotifx: Bring your own fees

This proposal suggests to add the new AMM and lending markets on Interlay and to pay out 8.46m INTR (~$130,000) as incentives to liquidity providers on the DEX and lending market over the course of three month. For a more detailed description and discussion about the proposal please refer to the [Interlay DeFi Hub Launch Discussion Post](https://interlay.subsquare.io/post/19).

Interlay DeFi Hub Launch Proposal

To make it easier and more attractive for people to bridge their BTC to iBTC, this proposal removes issue and redeem fees. The current fees are 0.15% for issues, and 0.5% for redeems. While this provides some income for vaults, the majority of vault income is through incentive rewards, so it shouldn't affect vault income too much. It is worth noting that while the bridging fees will be zero, redeems will still have the bitcoin network fees, which is a fixed amount regardless of the redeem size.

This proposal also reduces griefing collateral to 0.025%, to make it even easier to on-board new iBTC users. A reduced griefing collateral increases the risk of people creating fake issues, either as a kind of DoS attack, or to "reserve" capacity for future use. To reduce the likelihood and severity of that happening, this proposal also decreases the issue deadline from 24 hours to 12 hours.

- A proposal was made to make it easier for people to exchange their BTC to iBTC.
- The proposal removes issue and redeem fees, which means people don't have to pay extra money to exchange their BTC to iBTC.
- Vault income won't be affected too much because they still earn money through incentive rewards.
- The proposal also reduces griefing collateral to 0.025%, which makes it easier for new iBTC users to join.
- To prevent fake issues, the proposal decreases the issue deadline from 24 hours to 12 hours.

Interlay bridge adjustments

The vault collateral ceiling for USDT has been reached and there is more demand for using USDT as collateral. To allow further increasing the bridge capacity prior and post launch of the DeFi hub, it is suggested to raise the ceiling to 2,000,000 USDT. That would allow for a maximum of of ~$1,300,000 of additional mint capacity of iBTC (assuming the current ‘safe mint threshold’ of 155% for USDT).

USDT has proven to be a very resilient collateral asset and has so far consistently remained its USD peg over the last year with no deviation greater than 1% and only one deviation of more than 0.5%. Furthermore, the ceiling of USDT as vault collateral does not depend on it’s liquidity as it can be assumed that liquidators, who may want to avoid any price risk/exposure, will lock in their profit in a stable coin, so that no trading is required. Apart from that, USDT maintains deep liquidity against BTC and other assets on centralized exchanges as well es decentralized exchanges on the Polkadot ecosystem. As outlined in the discussion post https://interlay.subsquare.io/post/19 it is planned to create a large USDT/iBTC pool on Interlays DeFi hub to facilitate efficient trading at scale.

- USDT is a type of digital money that people use as collateral.
- The amount of USDT that can be used as collateral is almost full, so they want to increase it to 2,000,000 USDT.
- This will allow people to make more iBTC, which is another type of digital money.
- USDT has been very stable and has not changed much in value compared to the US dollar.
- They plan to make a big pool of USDT and iBTC on a website called Interlays DeFi hub to make it easier for people to trade.

Increase ceiling for USDT vault collateral 

Following the recent Kintsugi upgrades, there are many new changes to introduce to the Interlay network.

## DeFi Hub

The Bitcoin DeFi Hub introduces the following pallets:

- `DexGeneral` is a Uniswap v2-style AMM
- `DexStable` is a Curve v1-style AMM
- `Loans` is Compound v2-style lending protocol

Please note that this upgrade does not setup the pools, markets or incentives which will be proposed separately.

## Weights & Fees

Many breaking changes were introduced to improve the security of the network and increase usability:

- Cumulus, Polkadot and Substrate dependencies have been updated to `0.9.40`.
- Bitcoin type parsing was removed, consumers will do this off-chain and submit concrete types. This was necessary for complexity estimation and because we previously identified several bugs in the code responsible for parsing.
- Storage entries are now bounded to provide the relay chain with accurate proof sizes.
- Benchmarks now measure the worst-case complexity to limit the possibility of Denial-of-Service (DoS) attacks - the weights have been measured on standard node hardware.
- The `Treasury` pallet was removed as it served no useful purpose, users may now use the `spend_from_treasury` extrinsic to construct spending proposals.
- New events were introduced in `VaultRegistry`, `DexGeneral` and `Democracy` for downstream usage.
- Implements new "bring-your-own-fee" architecture which allows consumers to pay for transaction execution in currencies other than INTR, it does this by swapping the input token using our AMM.

For more details, please see the following:

https://github.com/interlay/interbtc/releases/tag/1.24.0
https://github.com/interlay/interbtc/compare/1.23.1...1.24.0

The latest compatible clients release for this version is v1.22.1:

https://github.com/interlay/interbtc-clients/releases/tag/1.22.1

Interlay has made some new changes to the Interlay network. Here are the main points:

- There is a new Bitcoin DeFi Hub which has three new features: `DexGeneral`, `DexStable`, and `Loans`.
- There have been many changes to improve the security of the network and make it easier to use.
- Some of the changes include updating dependencies, removing unnecessary features, and introducing new events.
- There is a new "bring-your-own-fee" system which allows people to pay for transactions using different currencies.
- For more details, you can check out the links provided.

Runtime Upgrade 1.24.0: DeFi Hub, Weights & Fees

Referendum #52 was approved (https://interlay.subsquare.io/democracy/referendum/52) but contained a technical issue due to the script generating the call having a bug that inserted garbage bytes in the call.

This proposal repeats #52 and has been tested using chopsticks: https://github.com/interlay/chopsticks#dry-run

**Request to fast-track**
Since the original proposal has passed, we request a fast-track by the TC.

Fix for #52 - Vote limiting

**Introduction**

The purpose of this funding proposal is to request 85,500 INTR tokens (~2,000 USD based on Subscan EMA7 price) in treasury funds to incentivize content creators in the Interlay and Kintsugi networks to produce and distribute high-quality and informative content. 

There’s currently a lack of accessible and accurate information about Interlay and Kintsugi online, which is hindering the growth of the networks. To address this issue, we propose to use the reward delivery system, WagMedia, to efficiently incentivize individuals to discover, develop, and distribute network-related content.

**About Wagmedia**

WagMedia is a Discord-based reward delivery system that connects those who want to share, create, and distribute the story of Dotsama with sources of funding. This system can also help Interlay and Kintsugi fulfil their purpose by efficiently incentivizing individuals in the discovery, development, and distribution of network-related content. Anyone is welcome to join the WagMedia Discord server and register with their substrate address. Actions performed on the server that meet the content objectives of participating treasuries are awarded by treasury directors who react to contributor posts with a custom value emoji. The user is then paid out by that treasury at the end of each week.

**Proposal**

The proposed strategy is to distribute treasury funds through WagMedia to content creators who meet the objectives of Interlay and Kintsugi. The funds will be used to build and maintain a marketing arm that provides accurate information to token holders. By doing so, we aim to establish a connection between token holders, the treasury, and media that works in their best interest.

The WagMedia reward delivery system will ensure that the distribution of funds is fair and transparent. This will create a positive impact on the Interlay and Kintsugi networks by increasing the availability of accurate and informative content to token holders, which will help drive network growth.

**Handling of funds**

Funding account: wd7ujFEwyRMMobncZ2Dx2keEVWWA42BATv7B3m7Vm8fmV3XsP
The funds will be deposited into an account controlled by a bot developed by Wagmedia that automatically generates reports based on the created content and tracks payable bounties to individual contributors. 

**Conclusion**

This proposal aims to use 85,500 INTR tokens of treasury funds to incentivize content creators in the Interlay and Kintsugi networks to produce and distribute high-quality and informative content. The funds will be distributed efficiently and strategically through WagMedia to ensure a fair and transparent distribution. The end goal is to provide accurate information to token holders and to drive network growth. We believe that this proposal will establish a connection between the token holders, the treasury, and media that works in their best interest.


- The proposal is to request funds to incentivize people to create and distribute content about Interlay and Kintsugi networks.
- There is currently a lack of accessible and accurate information about these networks online.
- WagMedia is a reward delivery system that can help incentivize individuals to create and distribute network-related content.
- The proposed strategy is to distribute treasury funds through WagMedia to content creators who meet the objectives of Interlay and Kintsugi.
- The end goal is to provide accurate information to token holders and to drive network growth.

Using Treasury Funds to Incentivize Content Production and Distribution Through Wagmedia

This proposal batches the HMRP accept from Bifrost to Interlay and requests to open a HMRP channel from Interlay to Bifrost.

Accept and request Bifrost HRMP [step 1/1]

This proposal implements a restriction of voting power for four years for team and investors to ensure that Interlay decisions are fully decentralized.

**Background**

Since both vested and unvested tokens can participate in voting, the Interlay team and investors introduce additional restrictions on their own voting power during the first four years after network launch. Specifically: while the community can use 100% of their vested and unvested INTR to vote, team and investors can only use a portion of their INTR (which is subject to lockup and vesting) to participate in governance - increasing linearly over four years.

**Voting Power Distribution**

See https://docs.interlay.io/#/interlay/governance?id=voting-power-distribution


- Interlay is a network that makes it possible to use Bitcoin on other blockchains.
- The team and investors of Interlay have proposed a new rule for voting power.
- This rule means that for the first four years after the network launch, the team and investors will have less voting power than the community.
- The community can use all of their tokens to vote, but the team and investors can only use a portion of their tokens.
- The team and investors' voting power will increase over the four years.

Limit voting power of Interlay team and investors ahead of token distribution

Due to a technical bug in https://interlay.subsquare.io/democracy/referendum/49, the proposal did not execute the transfer with a BadOrigin error.

**Request to fast-track**
Requesting to fast-track this proposal as it fixes a bug with an approved referendum. 

Fix: Propsal #51

# Stellaswap <> Interlay Governance Proposal

### Abstract
This is a proposal for INTR tokens to be used as incentives on StellaSwap’s iBTC-DOT pool and for Stellaswap to actively support the growth of iBTC on Moonbeam. This proposal differs from the prior one in that a proposed INTR-DOT pool has been dropped, per community feedback. If accepted this would run for 2 months, at which point both parties can evaluate the success of the program and take next steps.

### Background on Stellaswap
Stellaswap is the leading dex on Moonbeam, generally capturing 80-90% of on-chain volume. We’ve recently launched Pulsar, a Uniswap v3-style concentrated liquidity dex which constitutes a unique offering on Polkadot.The capital efficiency of Pulsar is many times higher than a standard dex, allowing much larger trades to be made on the same TVL without compromising on slippage.

### The Advantages of iBTC liquidity on Pulsar

There are two angles to explore in terms of how Pulsar incentives are uniquely positioned to promote the growth of iBTC.

### Stellaswap Support for iBTC
Stellaswap has the deepest BTC liquidity on Polkadot, in the form of our wBTC pool. This is a pool incentivized by grants from Moonbeam in the form of GLMR tokens. wBTC is of course a competitor to iBTC with a $4 billion market cap, but has the disadvantage of being non-native to Polkadot. Stellaswap is prepared to help siphon wBTC liquidity into iBTC with the following strategy
- When a user selects wBTC as the target on our Swap interface, a link will appear saying “Learn more about Polkadot’s native BTC solution: iBTC”
- A similar message would appear when users look at their Pulsar dashboard’s wBTC position
- On the iBTC-USDT pool’s row on the main Pulsar page, include a link to Interlay
- Stella incentives (more details in table below)

We feel that with the right push, many wBTC users will explore iBTC and choose to make the switch. We’re projecting this would achieve roughly half a million dollars in TVL based on the INTR and Stella emissions being provided.

### Pulsar

A key reason Pulsar is an excellent choice is efficiency. As aforementioned, concentrated liquidity can do a lot more than standard constant product pools. Whereas a Uniswap v2 style dex will only use ~5% of tokens in a day, we’ve seen some of our pools approach 100% on volatile days. This means that your incentives go farther on Pulsar in terms of reducing slippage on trades.

And that’s a key thing to consider. Slippage governs whether an asset is suitable for lending protocols. Slippage also governs how much money can enter a token at a time. Lower slippage leads to greater adoption.

### Real Life Example of Slippage Reduction with Lower TVL
|AMM Type|Pool|TVL|Price Impact of $5k Trade|
|------|------|------|------|
|Standard|USDC-GLMR|$2M|.52%|
|Pulsar|USDT-DOT|$176k|.49%|



In conclusion, we think this is an excellent opportunity to grow iBTC’s market share among Ethereum native users who are accustomed to wBTC.


Incentives and Projections

#### iBTC-DOT
|Asset|Price|Reward Value|Amount|Period|
|------|------|------------|------|------|
|INTR|.0235|$8500|362,388|8 weeks
|Stella|.0706|$8500|120,362|8 weeks|

#### Projections
|Pool|Target TVL|Expected APR|$ INTR / Day|$ Stella / Day|Reward APR|Swap APR|
|------|------|------|------|------|------|------|
|iBTC-DOT|$350k|71.22%|$152|$152|31.22%|40%|




For reference, on our legacy v2 dex iBTC-GLMR averaged $200k TVL, peaking at $354k.

Technical Details
Deposit INTR to wallet controlled by Stellaswap: Interlay would send the tokens to the Stellaswap multisig, from whence they would be deposited into a smart contract for distribution as incentives.
Stellaswap Multisig: 0x4300e09284e3bB4d9044DdAB31EfAF5f3301DABa



- This is a proposal for Stellaswap and Interlay to work together to promote iBTC on Moonbeam.
- Stellaswap is a dex on Moonbeam that has a new feature called Pulsar which is very efficient.
- iBTC is a native BTC solution on Polkadot and Stellaswap wants to help promote it by incentivizing users to switch from wBTC to iBTC.
- Pulsar's efficiency can help reduce slippage which is important for lending protocols and adoption of a token.
- The proposal includes incentives for users to trade on the iBTC-DOT pool and projections for the success of the program.

INTR Emissions to support iBTC on Stellaswap - public proposal #51

Hi all,

Shortly after HydraDX initiated the OTC purchase of iBTC, there was an issue related to the Asset Registry that caused transfers of iBTC from Interlay to HydraDX to fail. However, these transfers failed once they got to HydraDX and not before they left Interlay. As a result, there were 4x tx that got caught in the asset trap.

https://interlay.subscan.io/xcm_transfer?address=&fromChain=2032&toChain=2034&startDate=&endDate=&startBlock=&endBlock=&timeType=date&result=failed&protocol=all&filterParaId=

This proposal will claim those assets from the asset trap and resubmit the xcm transfers in order to complete the tx and the users can receive their assets.

Thanks,

lolmcshizz

- HydraDX tried to buy iBTC but there was a problem with transferring the iBTC from Interlay to HydraDX.
- The problem was with the Asset Registry and caused the transfers to fail.
- Four transfers got stuck in the asset trap.
- This proposal will fix the problem and complete the transfers so users can get their assets.
- The proposal will claim the assets from the asset trap and resubmit the transfers.

Complete failed XCM transfers to HydraDX

The runtime upgrade in referendum #45 updated our XCM weight types. This change was not accounted for when the StellaSwap referendum #46 was made. The referendum passed but due to the change in the XCM weight types, #46 cannot be decoded by the chain and thus not executed. No XCM transfer happened.

https://interlay.subsquare.io/democracy/referendum/46

INTR Emissions to support iBTC & INTR on Stellaswap

# Stellaswap <> Interlay Governance Proposal

### Abstract
This is a proposal for INTR tokens to be used as incentives on StellaSwap’s iBTC-DOT pool and for Stellaswap to actively support the growth of iBTC on Moonbeam. This proposal further recommends that Interlay provide incentives on a DOT-INTR pool. If accepted this would run for 2 months, at which point both parties can evaluate the success of the program and take next steps.

### Background on Stellaswap
Stellaswap is the leading dex on Moonbeam, generally capturing 80-90% of on-chain volume. We’ve recently launched Pulsar, a Uniswap v3-style concentrated liquidity dex which constitutes a unique offering on Polkadot.The capital efficiency of Pulsar is many times higher than a standard dex, allowing much larger trades to be made on the same TVL without compromising on slippage.

### The Advantages of iBTC liquidity on Pulsar

There are two angles to explore in terms of how Pulsar incentives are uniquely positioned to promote the growth of iBTC.

### Stellaswap Support for iBTC
Stellaswap has the deepest BTC liquidity on Polkadot, in the form of our wBTC pool. This is a pool incentivized by grants from Moonbeam in the form of GLMR tokens. wBTC is of course a competitor to iBTC with a $4 billion market cap, but has the disadvantage of being non-native to Polkadot. Stellaswap is prepared to help siphon wBTC liquidity into iBTC with the following strategy
- When a user selects wBTC as the target on our Swap interface, a link will appear saying “Learn more about Polkadot’s native BTC solution: iBTC”
- A similar message would appear when users look at their Pulsar dashboard’s wBTC position
- On the iBTC-USDT pool’s row on the main Pulsar page, include a link to Interlay
- Stella incentives (more details in table below)

We feel that with the right push, many wBTC users will explore iBTC and choose to make the switch. We’re projecting this would achieve roughly half a million dollars in TVL based on the INTR and Stella emissions being provided.

### Pulsar

A key reason Pulsar is an excellent choice is efficiency. As aforementioned, concentrated liquidity can do a lot more than standard constant product pools. Whereas a Uniswap v2 style dex will only use ~5% of tokens in a day, we’ve seen some of our pools approach 100% on volatile days. This means that your incentives go farther on Pulsar in terms of reducing slippage on trades.

And that’s a key thing to consider. Slippage governs whether an asset is suitable for lending protocols. Slippage also governs how much money can enter a token at a time. Lower slippage leads to greater adoption.

### Real Life Example of Slippage Reduction with Lower TVL
|AMM Type|Pool|TVL|Price Impact of $5k Trade|
|------|------|------|------|
|Standard|USDC-GLMR|$2M|.52%|
|Pulsar|USDT-DOT|$176k|.49%|

This proposal also asks that Interlay provide INTR-DOT incentives on Pulsar. While we want to focus incentives on iBTC it’s important to have a healthy INTR-DOT pool as well, both to support the iBTC pool and to provide users interested in iBTC the chance to invest in the protocol token as well. Because of Pulsar’s efficiency, swaps can be supported with a more modest allocation than a constant product pool would require.


In conclusion, we think this is an excellent opportunity to grow iBTC’s market share among Ethereum native users who are accustomed to wBTC.


Incentives and Projections

#### iBTC-DOT
|Asset|Price|Reward Value|Amount|Period|
|------|------|------------|------|------|
|INTR|.0235|$8500|362,388|8 weeks
|Stella|.0706|$8500|120,362|8 weeks|

#### iBTC-INTR
|Asset|Price|Reward Value|Amount|Period|
|------|------|------------|------|------|
|INTR|.0235|$1500|63,950|8 weeks|
|Stella|.0706|$1500|21,240|8 weeks|

#### Projections
|Pool|Target TVL|Expected APR|$ INTR / Day|$ Stella / Day|Reward APR|Swap APR|
|------|------|------|------|------|------|------|
|iBTC-DOT|$350k|71.22%|$152|$152|31.22%|40%|
|INTR-DOT|$50k|58.57%|$27|$27|38.57%|20%|



For reference, on our legacy v2 dex iBTC-GLMR averaged $200k TVL, peaking at $354k.

Technical Details
Deposit INTR to wallet controlled by Stellaswap: Interlay would send the tokens to the Stellaswap multisig, from whence they would be deposited into a smart contract for distribution as incentives.
Stellaswap Multisig: 0x4300e09284e3bB4d9044DdAB31EfAF5f3301DABa



- Stellaswap is a decentralized exchange on Moonbeam, which is a blockchain network.
- They want to support the growth of iBTC, a native BTC solution on Polkadot, by incentivizing users to switch from wBTC to iBTC.
- They plan to do this by providing links to iBTC on their Swap interface and Pulsar dashboard, and by offering incentives in the form of INTR and Stella tokens.
- Pulsar is a more efficient option for incentives because it has concentrated liquidity, which reduces slippage on trades.
- Interlay, the creator of iBTC, is being asked to provide INTR-DOT incentives on Pulsar to support the iBTC pool and provide users with the chance to invest in the protocol token.

INTR Emissions to support iBTC & INTR on Stellaswap - public proposal #48

This is a combination of three runtime upgrades that have already been enacted on kintsugi:
- [1.21.10: capacity-based vault revenue distribution](https://kintsugi.subsquare.io/democracy/referendum/92)
- [1.22.0: Governance Improvements](https://kintsugi.subsquare.io/democracy/referendum/94)
- [1.23.1: Security updates](https://kintsugi.subsquare.io/democracy/referendum/99)

For more details, please see the linked referenda above, and:

https://github.com/interlay/interbtc/releases/tag/1.23.1
https://github.com/interlay/interbtc/compare/1.20.1...1.23.1


The latest compatible clients release for this version is v1.21.0:
https://github.com/interlay/interbtc-clients/releases/tag/1.21.0

As a vault operator and collator that is here from the start I strongly support the quick introduction of the capacity model on Interlay.
I am aware that it is lowering the APR for some and I am one of these in Interlay. 
It makes vault operation fair for everyone and prevents some entities "gaming the system" by bridging through their nodes and redeeming through others.
On Kintsugi my vault was "emptied" so many times and I had less than 5% APR for half a year and would have been better off just staking the collateral.
I hope all my fellow operators share this vision and support the initiative.

Kintsugi has made three upgrades to their system, which are capacity-based vault revenue distribution, governance improvements, and security updates. These upgrades have been enacted on Interlay. The latest compatible client release for this version is v1.21.0. As a vault operator and collator, the author supports the capacity model on Interlay, which makes vault operation fair for everyone and prevents some entities from gaming the system. The author's vault was emptied many times on Kintsugi, and they had less than 5% APR for half a year. The author hopes that other operators will support this initiative.

Runtime Upgrades and Capacity Model

Payment Details:
Beneficiary Address: 5CyarovBr8e3uAauvGH7MhmT8wQPZ5W3eCEwM1fHoHf9LapE

Milestone funding size: 3000 USD worth of INTR
INTR price 7 day average: $ 0.033812516
(Price fetch from Coingecko 2023-02-16 to 2023-02-22)

Milestone 1 Payment amount: 88725 INTR

Details including proof:
https://docs.google.com/document/d/1GDRavSyUU2qtLYZKF0bgWlb571cIPkGr2zXrKX_M6Lg/edit?usp=sharing


Interlay Grants Program - Milestone Payment 1 for RFP: Analytic Dashboard for Lending Market

This is a follow-up to the canceled proposal 37 [https://interlay.subsquare.io/democracy/proposal/37](https://interlay.subsquare.io/democracy/proposal/37). 

Based on the discussion post on Interlay [(https://interlay.subsquare.io/post/14)](https://interlay.subsquare.io/post/14), I propose the activation of USDT as a vault collateral on interlay.

Please find below the parameter configuration proposed for the "USDT vaults":


* Initial collateral ceiling: 200.000,00 USD equivalent
* Secure collateral threshold: 155%
* Premium redeem threshold: 145%
* Liquidation threshold: 135%
* Minimum collateral threshold: 150 USDT


## Resources:



* USDT Asset Registered: [https://interlay.subsquare.io/democracy/referendum/27](https://interlay.subsquare.io/democracy/referendum/27)
*  - Statemint XCM Channel: [https://interlay.subsquare.io/democracy/referendum/32](https://interlay.subsquare.io/democracy/referendum/32)
*  Governance guides: [https://docs.interlay.io/#/guides/governance](https://docs.interlay.io/#/guides/governance) (incl. how to make a proposal)
* Python code used for the analysis of new assets proposed as vault collateral: [https://github.com/interlay/collateralization-analysis](https://github.com/interlay/collateralization-analysis)

Interlay is proposing to activate USDT as a vault collateral on their platform. 
The proposed parameters for the USDT vaults include an initial collateral ceiling of 200,000 USD equivalent, secure collateral threshold of 155%, premium redeem threshold of 145%, liquidation threshold of 135%, and a minimum collateral threshold of 150 USDT. 
Interlay has registered USDT as an asset and provided governance guides on how to make a proposal. 
Python code has been used for the analysis of new assets proposed as vault collateral.

Activation of USDT as a Vault collateral on Interlay 

- Beneficiary: OpenSquare(wd9NFc6FqUboL2iGoV93bQ9zpnKi7PiB3MHRD6XwjPBoNDZVf)
- Date: 01/28/2023
- Requested Allocation: $6,800(309,090 INTR by the EMA30 price of 01.28.2023 on subscan)
---
SubSquare is a governance platform for substrate based blockchains, and we have been continually maintaining the deployments for interlay and kintsugi. We propose a treasury spend to support the work.

## Work scope

- Daily devops/monitor work to keep the deployment well running.
- Track and update common dependencies like polkadot api.
- Part of delivered enhanment features
  - Dark mode.
  - Event notifications by email.
  - UI improvements like menu foldable, new version editor, etc.
  - Escrow stake value for user login with polkadot key.
  - User profile which show proposed proposals.
  - Support treasury proposal post bind with related democracy public proposal.
- Part of development plans
    - Calendar feature with which we can see history/future events with a calendar view.
    - `cmd+k` feature for better navigation.
    - Off-chain discussion data decentralization.
    - Governance data statistics.
    - Other notification ways support like discord/telegram.


## Cost

We request $800 per month for kintsugi and $600 per month for interlay. We requested 2 networks maintenance in one proposal to avoid community unnecessary votes, and next time we may propose it on kintsugi.

| Item        | detail            | Cost   |
|-------------|-------------------|--------|
| Interlay maintenance | 2022.09 - 2023.02 | $3,600 |
| Kintsugi maintenance | 2022.11 - 2023.02 | $3,200 |
| Total      | $0.022/INTR by EMA30 price on subscan | 309,090 INTR |

SubSquare is a platform for blockchain governance.
They want to spend money to support their work on interlay and kintsugi.
Their work includes keeping the deployment running, updating dependencies, and improving the user interface.
They also have plans for new features like a calendar and better navigation.
They are requesting $800 per month for kintsugi and $600 per month for interlay, for a total of $6,800.

Subsquare maintenance proposal for interlay(2022.09 - 2023.02) and kintsugi(2022.11 - 2022.02)

# Allocation of Funds - Interlay Labs Grants Program Trial
### Background:
Interlay recently launched the [Interlay Labs Grants Program](https://interlay.notion.site/Interlay-Labs-Grants-Program-72973b76d15a4a9fad6a9bac1ba3f9c3) , focusing on **funding software development and research efforts related to Interlay and Kintsugi**. Interlay Grants will be awarded to teams and individuals who bring value-added projects to the Interlay ecosystem, creating a strong community of incentivized tech contributors. The program launched in a trial phase in December 2022 and two projects have been onboarded (see below). 
### Brief
This proposal suggests to reserve **350,000 INTR** tokens from the treasury to awarding the first two recipients of Interlay Grants (upon project/milestone completion). **This initial proposal does not make any payment, it is only to approve the allocation of funds for the Grants Program.** All future payment requests will be submitted by grantees as follow-up governance proposals.

This process (pre-approve budget for n grants, then individual applicants submit payout requests) is being tested as the go-to approach for future grant projects. 

### Detail
To kickstart the Interlay Labs Grants Program, two items of Request for Proposals (RFP) were promoted for application:

#### RFP 1: Analytic Dashboard for Lending Market and AMM
- Link:https://www.notion.so/interlay/Closed-Analytic-Dashboard-for-Lending-Market-and-AMM-dbfb8e3a30e14beebe6f0290a6f67dc0
- Grant Size: 5000 USD (approx. 210000 INTR on date of writing Jan 18th 2023)
- **Milestone delivery:**
    - Milestone 1: (3000 USD worth of INTR) 
        - Implementation of Squid V1
            - Single point data (market overview, market details, and whale watcher)
            - All loan markets and events associated with loan markets, such as loans and deposits
            - USD-equivalent values at the time of the event will be pulled from on-chain OracleUpdate events.
            - Interest will be tracked across loan markets and denominated in its original and human-readable token
    - Milestone 2: (2000 USD worth of INTR)
        - Implementation of Squid V2
            - More accurate calculation of qToken values
            - Tracking liquidation events
        - Grafana integration
            - Total value locked
            - Loans activity over time
            - Liquidations over time
            - Whale watcher
        - Final delivery 
            - Glossary

#### RFP 2: Lending Liquidation Bot
- Link:https://www.notion.so/interlay/Lending-Liquidation-Bot-35dc0b921df84f5f88964a27fd0642cd
- Grant Size: 1500 USD (approx. 63000 INTR on date of writing Jan 18th 2023)
- **Milestone: Final delivery**

### Funding
The total amount of 350,000 INTR will be reserved for the following purposes:
- funding for the two RFP items mentioned above,
- excess tokens to ensure full coverage of grant size in dollar value in case of price fluctuations

This proposal does not involve any transfer of funds. Its purpose is simply to gather support and approval from the community for using treasury funds to pay out the contributors of the Interlay Grants Program. The payment of each Grant will be subject to treasury proposals specific to the project.




Interlay Labs Grants Program Trial is a program that funds software development and research efforts related to Interlay and Kintsugi. 

The program launched in a trial phase in December 2022 and two projects have been onboarded. 

This proposal suggests to reserve 350,000 INTR tokens from the treasury to awarding the first two recipients of Interlay Grants (upon project/milestone completion). 

The two items of Request for Proposals (RFP) were promoted for application: Analytic Dashboard for Lending Market and AMM and Lending Liquidation Bot. 

The total amount of 350,000 INTR will be reserved for funding the two RFP items mentioned above and excess tokens to ensure full coverage of grant size in dollar value in case of price fluctuations.

Allocation of Funds - Interlay Labs Grants Program Trial

This proposal opens the XCM channel to HydraDX. This will allow assets to be transferred in between Interlay and HydraDX and open a path towards more use cases for iBTC and more collateral assets for iBTC.

**TC Table**

Since we want to proceed as quickly as possible with opening the channel to move the discussion to actual use cases for both communities, we request that this proposal be tabled.

**Extrinsic**
https://polkadot.js.org/apps/?rpc=wss%3A%2F%2Fapi.interlay.io%2Fparachain#/extrinsics/decode/0x0302085b0001010002140004000000000700f2052a0113000000000700f2052a010006000700e40b5402383c00f2070000e803000000900100140d01000400010100b853988cb73cb4b2f58d15910d2dba4b37656b0542c799fbe92ba133e14e86305b0001010002140004000000000700f2052a0113000000000700f2052a010006000700e40b5402183c01f2070000140d01000400010100b853988cb73cb4b2f58d15910d2dba4b37656b0542c799fbe92ba133e14e8630

- XCM channel will be opened to HydraDX.
- This will allow assets to be transferred between Interlay and HydraDX.
- This will create more use cases for iBTC.
- More collateral assets will be available for iBTC.
- A proposal has been made to proceed quickly with opening the channel.

Open XCM channel with HydrDX - Part 1/1 (Accept & request HRMP)

This runtime upgrade adds the following:

1. Fixes the statement channel to make USDT transfers workable in both directions (currently, Interlay to Statemint is not working)
2. Tables proposals to referenda always on Monday morning at 9:00 UTC to get around the block time variance issue and make referenda execution predictable
3. Tables two proposals to referenda to account for the fact that treasury and regular proposals are happening in parallel

Updates Interlay to the latest runtime (**breaking**).

For more details, please see the following:

https://github.com/interlay/interbtc/releases/tag/1.20.1
https://github.com/interlay/interbtc/compare/1.19.1...1.20.1

The latest compatible clients release for this version is `v1.18.1`:

https://github.com/interlay/interbtc-clients/releases/tag/1.18.1

# Request for tabling

To not block other ongoing proposals, we request to table this proposal to a referendum for voting.

SubSquare has made some updates to their system, which are as follows:

- They have fixed a problem with USDT transfers not working in both directions.
- They have scheduled proposals to referenda on Monday mornings at 9:00 UTC to make the execution of referenda predictable.
- They have accounted for the fact that treasury and regular proposals are happening in parallel by tabling two proposals to referenda.
- They have updated Interlay to the latest runtime, which is a breaking change.
- To avoid blocking other ongoing proposals, they have requested to table this proposal to a referendum for voting.

Democracy Public Proposals