Centrifuge, the DeFi protocol that connects you to the real world. We enable you to unlock liquidity for real world assets. Get all the information now.
Centrifuge allows you to transfer assets such as invoices, real estate and royalties to DeFi.
What is Centrifuge?
Centrifuge is a parachain of the Polkadot network that enables Real World Assets (RWAs) to be represented on the blockchain via tokenization. This project defines itself as an agnostic protocol that enables the tokenization of any asset class (real estate, treasury bonds, equities, etc.).
Tokens issued on the Centrifuge blockchain are accessible in pools to optimize market efficiency, transparency and liquidity, notably by reducing the number of intermediaries normally solicited within traditional finance.
By facilitating access to real-world assets on blockchain, Centrifuge also addresses the problem of companies unable to obtain bank financing, by offering them private loans.
The Centrifuge protocol enables companies to immobilize their tokenized assets as collateral in pools in which users can invest to lend their liquidity in exchange for returns. Centrifuge brings together 3 main players:
- Real-world companies seeking financing;
- Stablecoin issuers, who facilitate credit;
- Investors, suppliers of liquidity.
This blockchain is compatible with the Ethereum Virtual Machine (EVM). This means it is possible to interact with Centrifuge from an EVM-compatible wallet such as MetaMask, or via a Polkadot wallet.
Centrifuge at a glance:
This ecosystem provides a network that gives small businesses access to fast, cheap capital, and investors stable returns.
Tinlake is Centrifuge’s investment app that acts as an open marketplace of real-world asset pools. Investors can look through the pools provided by Asset Originators and invest in the ones that work for them.
Centrifuge Chain, Centrifuge Chain is the home for real-world assets (RWA) on-chain. It is a Proof-of-Stake blockchain built on Substrate that enables users to bring their assets on-chain as non-fungible tokens (NFTs). This is the starting point to unlock financing for any type of asset through DeFi. Centrifuge Chain is bridged to Ethereum, but uses its own native token – the Centrifuge (CFG) token.
Centrifuge token (CFG) is a crypto economic primitive and a native token that utilizes a nominated-Proof-of-Stake consensus algorithm to stake validators and provide incentives for Centrifuge adoption. CFG empowers holders to guide the development of the platform through on-chain governance.
Centrifuge, in a nutshell, how is it useful?
Centrifuge bridges the gap between real-world assets and DeFi (« Decentralized Finance« ) to lower the cost of capital for SMEs and provide DeFi investors with a stable source of return uncorrelated to volatile crypto assets.
In the current financial system, only the largest companies have direct access to liquid capital markets. Most rely on banks for their capital needs. The lack of an open and transparent market denies these smaller companies access to competitive interest rates, primarily due to market inefficiencies and transaction costs.
DeFi is a growing financial system without any barriers of entry. The platform wants to bring this benefit to all borrowers that until now had no access to DeFi liquidity.
With our first user facing product – Tinlake – Centrifuge allows anyone to launch an on-chain credit fund creating collateral-backed pools of loans. Tinlake offers an easy way into DeFi liquidity for any business. For DeFi investors, these assets will create a safe, stable yield for their money uncorrelated from attractive yet volatile returns in crypto markets. Through CFG Rewards, investors can farm additional yield and participate in the ecosystem.
Tinlake is currently built on Ethereum, however going forward it will be fully migrated to our Centrifuge Chain and our secure p2p protocol. This will allow accurate pricing and risk assessment of any kind of assets (be that your future revenue as a business, a house or some farm land) and create liquid markets for these assets. As this ecosystem grows, more data will be on chain reducing the trust in the off-chain world and reducing the dependence on a single point of failure.
We believe that Tinlake is only the first step. The Protocol we are building will enable use cases such as Deep Tier Finance fulfilling our vision to foster economic opportunity everywhere.
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