Centrifuge (CFG)

Last updated 12/11/2022

Official Website: https://centrifuge.io/

Introduction to Centrifuge (CFG)

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.

Founders

Roadmap

April 2020 - released the mainnet for Centrifuge Chain, which was built on Substrate and has 32 validators right now, including ChorusOne, Pure Stake, Staked.us, Stake Capital, and StakeFish.
May 2020 - There are presently nine real-world asset pools in the Tinlake securitization Dapp, which launched on Ethereum, and TVL is likely to cross $7 million for Tinlake v3 ($10 million overall).
October 2020 - released Tinlake version 3 with revolving asset pools.

What’s coming next:

Set up a test chain on Kusama and release Centrifuge Chain as a parachain on the Polkadot Relay Chain
Launching the first asset pool in the real world to support MakerDAO's DAI
Release of the first merged real estate asset portfolio on Aave
Accept the Acala and Celo stablecoins in Tinlake pools
Decentralizing risk assessment using an underwriter token will increase the price of credit

Where to Store Centrifuge (CFG)

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.

Centrifuge (CFG) Resources

Website: https://centrifuge.io/

Block Explorer: https://centrifuge.subscan.io/

Twitter: https://twitter.com/centrifuge

Medium: https://medium.com/centrifuge

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.