DeFi Intrastructure and Tooling Bounty (Discussion)


Hi everyone!

We posted our DeFi Infra & Tooling Bounty up for discussion last week on Polkassembly but wanted to cross-post it here for greater visibility and hopefully some community feedback. We’ll give a broad overview of the problems we see and how this bounty aims to solve them.

The Problem
Some of the challenges that the Polkadot ecosystem grapples with are the lack of unified infrastructure and tooling.

On the infrastructure front, the absence of a robust, ecosystem-wide infrastructure support, which centralized exchanges (CEXs), on/off ramps, custodians, and bridges, significantly hinders accessibility for new users to Polkadot-based applications. This issue not only limits the ecosystem’s growth potential but also curtails the ability of institutional capital to participate in and leverage applications within the Polkadot ecosystem.

Additionally, effective tooling is fundamental in the context of Polkadot’s multi-sharded, heterogeneous architecture. To streamline development processes and boost efficiency, robust and generic tooling solutions are indispensable. Currently, much of the tooling is developed by individual parachain teams for their specific parachains, leading to redundant development efforts and inefficient allocation of resources across the ecosystem. A wider supply of generic and unified tooling would significantly enhance the Developer Experience on Polkadot which in most cases translates into an improved UX for end-users.

Lastly, the existing mechanisms for infrastructure providers and tooling developers to engage with the ecosystem are complex and uninviting. These teams are currently channeled through OpenGov, requiring them to navigate a steep learning curve to secure community approval for their proposals. This cumbersome process creates substantial barriers to entry for teams capable of contributing valuable products and solutions to the Polkadot ecosystem.

Proposed Solution
The purpose of this bounty is to streamline the allocation of treasury funds for developing and integrating essential tools, SDKs, UIs, and APIs needed to overcome current barriers to Polkadot adoption as well as to fund the necessary infrastructure for AssetHub and BridgeHub. It benefits from a proposed curator set of prominent community members who possess a deep understanding of these challenges and their solutions. These individuals will actively oversee the progress of selected builders and service providers, ensuring a wise and effective use of treasury funds.

The bounty’s operational framework draws inspiration from the Web3 Foundations Grants but with a more targeted focus. Leveraging the insights and expertise of parachain founders and builders within our curator set, Velocity Labs will initiate the process by publishing Request-for-Proposals (RFPs) that provide specific details on the tooling or infrastructure projects intended for funding. Velocity Labs will actively seek out capable teams, both from within and outside our ecosystem, to ensure that the most qualified teams are applying for the bounty. The selection process will be merit-based, relying on a comprehensive application submissions that include details on proposed development, milestone plans, relevant prior experience, available resources, and funding requests. Chosen applicants will receive feedback from the curators, and Velocity Labs will conduct code reviews and testing to ensure that deliverables meet the expected standards before disbursing funds from the Bounty.

Complementing the primary scope, the bounty will also allocate funding for maintenance requests for tooling with demonstrated broad use and adoption. Additionally, teams willing to develop documentation for new and existing tooling will receive support. With this we attempt to encompasses the entire development lifecycle, ensuring that not only the right solutions are developed and maintained but also that these solutions are effectively brought to market to maximize their impact within the Polkadot ecosystem.

Proposed Curator Set

  • Velocity Labs (Nicolas Arevalo)
  • Moonbeam (Alberto Viera & Derek Yo)
  • Acala (Bryan Chen)
  • Centrifuge (Lucas Vogelsang & Jeroen Offerjins)
  • HydraDX (Jakub Gregus)
  • Novama Technologies (Leemo)
  • Giotto

If you’re interested in digging into the details of the proposal you can find the full proposal on this link.

We’re looking for community feedback to make sure we don’t leave any stone unturned when submitting the bounty for referendum. We’re happy to answer any questions or comments as well in case something isn’t clear enough.


Hey @Velocity_Labs , great idea!
We would like to give to your attention, that there is a tooling to unify experience for developers. It is called ParaSpell - ParaSpell · GitHub

We have developed multiple variations to suit as many teams as possible.
XCM SDK - Core tool, that allows you to build XCM calls within one line and in a few seconds
XCM ROUTER - The tool allows you to send one currency and receive another on the destination chain, all within one call and 3 signatures.
XCM API - Groups both XCM SDK and XCM Router to free API that allows you packageless implementation of both tools.

All 3 tools will soon be grouped into Monorepo for easier access and usage.

Forum post explaining tools further: Introducing revolutionary set of XCM Tools for dApp developers - ParaSpell✨ - #2 by dudo50

We are in support of this bounty and are open to building more cross-chain capabilities.


Hey @dudo50!

Thanks for the support. We’re well aware of ParaSpell and your success in securing funding through the treasury. You understand better than most the challenges builders face in obtaining the funding they deserve for developing essential tooling. With this Bounty, we’ll not only be able to fund new tooling with guidelines and oversight but also cover maintenance costs for tooling that has been providing value to the ecosystem through their developments and updates

With the expertise of our curators, we’ll streamline maintenance proposals for widely-used tools and prevent funding for tools that aren’t delivering value.

We appreciate your comment here and look forward to working closely with you to ensure that the DeFi Infra and Tooling bounty delivers the value we believe it can provide.


Hey everyone!

We are excited to share our progress with regards tor the DeFi Infra and Tooling Bounty. Together with the Bounty curators, last week we submitted our first child bounties that went through the our Bounty’s internal voting process:

Project Name: KuCoin

Type: Centralized Exchange

Deliverable: Asset Hub integration with support for USDT deposits/withdrawals

Child Bounty Size: $63,000 USD

Ecosystem Benefit: One of the goals of this bounty was to incentivize infrastructure providers like CEXs and On/Off Ramps to support Asset Hub with their services. This has several benefits to Polkadot including the improvement of accessibility to our ecosystem, specifically for stablecoin liquidity in the form of USDT and USDC. KuCoin is one of the leading CEXs , providing the Polkadot ecosystem with a significant number of users.

Status: The integration was completed back in March 2024 with the official announcement HERE. The bounty wasn’t active back then, thus Velocity Labs funded the initiative, in order to expedite production. This child bounty was awarded to Velocity’s official wallet, reimbursing the funds previously spent. Proof of the payments to KuCoin was provided to the curators before the vote.

Project Name: Ramp Network

Type: On/Off Ramp

Deliverable: Asset Hub integration with support for USDT, USDC and DOT deposits.

Child Bounty Size: $60,000 USD

Ecosystem Benefit: Similar to the one mentioned above for KuCoin but with the added benefit that Ramp will be supporting more assets. Ramp Network provides its users with easy ways of onramping from fiat to crypto in a simple and cost efficient way. Although CEXs provide cheaper alternatives, Onramps are able to offer a diverse set of payment options. In addition to that, Ramp has committed to working on the integration of Asset Transfer API into their systems to be able to offer direct-to-parachain on-ramps. They are currently in talks with both Polimec and Moonbeam to enable these. Velocity Labs will be supporting them in order to continue expanding their reach.

Ramp would be the first service provider to enable these userflows finally materializing the Asset Hub vision while abstracting it away from the user and providing infra providers with a scalable way of supporting the ecosystem without having to integrate each parachain independently. We’ll be providing more updates as Ramp communicates them to us.

Status: This was delivered and announced back in April (announcement HERE) with the direct-to-parachain on ramps still pending development.

Project Name: Zapper

Type: DeFi Explorer

Deliverable: Integration of 4 EVM parachains (Astar, Hydra, Moonbeam, Acala, Hydration) into their Zapper platform.

Child Bounty Size: $118,000 total, split into 3 deliverables. This specific child bounty is for MS1 which was $5,000.

Ecosystem Benefit: Zapper is one of the most widely used Portfolio Management and DeFi explorer tools in the Ethereum ecosystem. They provide on-chain events related to DeFi (memecoins, DEXs, NFTs) in a human-readable way while adding a social component to the experience: through Zapper, you can see what “whales” or high profile accounts are doing. Although they have firstly kept their chain support limited to Ethereum Mainnet and the main L2s, they have now decided to branch out. Having Polkadot parachains being exposed in Zapper will provide an exposure to user bases that wouldn’t otherwise be aware of activity within Polkadot. This will create the opportunity for the initial supported parachains to acquire new users from the Ethereum world. Pending on the success of this integration, Zapper committed to making a follow-on proposal for other non-EVM parachains in the future.

Status: Zapper are currently doing both technical and product research on each of the mentioned parachains to scope out what dApps and events will be exposed in their webapp. This is a part of the first milestone, corresponding to the submitted child bounty. The rest will follow upon completion and attestation by Velocity Labs.

Hey @Velocity_Labs,

Congrats on getting the bounty approved! :muscle:

I’ve developed the library mentioned below:

And was encouraged by one of your team members to apply for this bounty once it was approved. :blush:

I’m excited to see what will come of this initiative. Can’t wait! :pray: