What is Centrifuge (CFG)?
Centrifuge is a project under Sector Tokenizing RWA (Real World Assets) and is the first protocol to connect DeFi with real-world assets. Businesses today are using Centrifuge to access the liquidity that Defi offers.
Centrifuge Its function is to promote economic opportunities and reduce capital costs for small and medium enterprises. Today global spending is up to 180 trillion dollars with an average payment period of 60 days and during which time businesses need financing. Especially, small and medium enterprises do not have abundant financial resources, so sustainable growth will be more difficult than large enterprises. Therefore, Centrifuge allows businesses to exchange invoices and tokenize assets for greater financial access. In addition, Centrifuge also provides Defi investors with a stable source of profit even in times of market volatility.
How it works
Centrifuge works based on 2 main components: Centrifuge Chain and Tinlake.
- Centrifuge Chain is the gateway for real-world assets to the Blockchain. Project built Centrifuge Chain on Substrate Parity with an original bridge to Ethereum. Centrifuge It is possible to develop a standardized bridge to Ethereum that can be reused by other projects, thus increasing interoperability.
- Tinlake is a Dapp on Ethereum that allows investors and borrowers to fund their own pool of assets. Tinlake’s smart contracts are open source and easily integrated into the DeFi ecosystem. Tinlake uses Centrifuge to create non-fungible individual assets that can be used as collateral for loans
Total value locked (TVL) doubles every month
Centrifuge has entered a new phase of real-world asset TVL growth. Once encrypted, real-world assets, such as bills, real estate, royalties, and others, have the potential to bring trillions of dollars in new assets to DeFi. Centrifuge tokenize real-world assets by converting them to NFTs above Centrifuge Chain. Total real-world asset-locked value measures the active real-world asset value used to fund on Centrifuge.
Pioneer project on Polkadot
Centrifuge has the highest TVL in the Polkadot ecosystem – is one of the first projects to run Parachain on Polkadot. Centrifuge is built on Polkadot for speed and low fees, while Centrifuge’s financial Dapp, Tinlake, is built to access the massive liquidity on Ethereum. $CFG token has its own bridge to Ethereum.
Integration with leading DeFi projects
Centrifuge is the first protocol to convert real-world assets into DAO by Maker DAO and is also evolving to be able to bring real-world asset markets to the Aave platform. Direct integration into other DeFi protocols allows users to Centrifuge get instant liquidity and make DeFi protocols more secure against volatility events by adding extraneous collateral.
Basic information about CFG
|Token name||CFG token|
|Token type||Governance, Utility|
|Token supply||425,000,000 CFG|
Token use cases
- $CFG is provided for chain security and rewards Liquidity Providers in Tinlate. $CFG is used to pay staking and transaction fees.
- Governance: $CFG Holders have the right to participate in On-chain voting and propose Proposals to govern CFG tokens.
Token Release Schudule
Most tokens are locked for a long time. Core team locks for 48 months and vesting tokens for 12 months from July 2021. Initial backers or core contributors will be paid monthly tokens.
Furthermore, 3% of $CFG is expected to be minted every year as a reward. Over time, the transaction fees burned out of circulation will also stabilize the total supply of $CFG.
The project team comes from many leading organizations in the world such as Goldman Sachs, Consensys, Credit Suisse, SAP, Microsoft, United Nation….
Centrifuge has prominent partners in the crypto industry such as Polkadot, AAVE, the Graph, Chainsafe, Chorus, Coinbase, Ledger, Databased….
There are quite a few large funds that invest in Centrifuge as Blue Yard, Crane, Semantic Ventures, Rockway, Fintech Collective…
Centrifuge is the Defi project on Polkadot with a vision of connecting trillions of dollars in real assets to Defi and encrypted through Centrifuge Chain from RWAs (real estate, vehicles…) and are traded as NFTs. $CFG is also the first token on the project’s platform. The project team comes from many reputable leading organizations as well as the project is invested by many large funds, so in my opinion, this is a potential project.
However, Centrifuge No specific roadmap has been given, but through the project’s blog, it can be seen that: Centrifuge is focusing on growing its ecosystem and will launch Parachain Polkadot when this feature is available on Polkadot.
Above is all the information that the GTA Research team has researched about the Centrifuge project. Hope this article will help you get the necessary information and give your personal opinion about the project.
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