Last updated 12/11/2022
Official Website: https://centrifuge.io/
A decentralised asset financing protocol is called Centrifuge. In an effort to minimise the cost of funding for small and mid-size firms (SMEs) and give investors a steady source of income, it links decentralised finance (DeFi) with real-world assets (RWA). The project's main objective is to make money unrelated to the volatility of cryptocurrency assets; the developers are working to convert actual money from fiat to cryptocurrencies.
Centrifuge is being used by companies to gain access to the liquidity DeFi offers to provide. Through Tinlake, a decentralised application (DApp) lending protocol, they can tokenize actual assets and utilise these tokens as security to get financing. Polkadot (DOT) is used in the CFG blockchain for speed and cheaper fees, while Tinlake, its financial DApp, is built to access ETH liquidity.
Everyone has access to liquidity thanks to Centrifuge, while investors profit and gain incentives in the form of CFG tokens. Centrifuge connects decentralised money with assets like bills, properties, and royalties (DeFi). Borrowers also gain from being able to finance their real estate without the use of banks or other intermediaries.
Real-world assets are turned into non-fungible tokens by the Centrifuge protocol to tokenize them (NFTs). They then receive funding from Tinlake. The first DApp created on the Centrifuge chain is called Tinlake. While CFG has its own bridge to Ethereum, it was developed to utilise Ethereum liquidity.
Integrating Centrifuge with other DeFi protocols is one of its features. By adding uncorrelated collateral, this innovation enables Centrifuge users to obtain liquidity without delays and protects DeFi protocols from destabilising events. As a result, the overall risks are diminished, and smart contracts take the role of predatory lending and banks.
The Polkadot ecosystem's Centrifuge has the largest total value locked (TVL) as of June 2021. The project also boasts that it was one of the first to introduce a parachain on Polkadot. Operational efficiency and affordable prices were given top consideration when the Centrifuge chain was created.
What’s coming next:
Since the Centrifuge chain is a component of the Polkadot ecosystem, the Polkadot Portal, a browser extension available for Chrome, Firefox, and the Brave Browser, is the appropriate place to store Centrifuge CFG Tokens.
Block Explorer: https://centrifuge.subscan.io/
Disclaimer: The information provided in this article is intended for informational purposes only. It is the readers responsibility to complete their own research and due diligence.