Centrifuge is a protocol connecting real assets worth trillions of USD with DeFi, helping businesses access DeFi liquidity while investors benefit from attractive yields.
Centrifuge allows tokenization of real assets into NFTs circulating on the blockchain, opening a breakthrough approach for financing, utilizing, and managing real-world assets in the digital age, increasing reliability and financial flexibility.
MAIN CONTENT
Centrifuge pioneers the introduction of real-world assets (RWA) onto DeFi, rapidly increasing TVL and enabling cross-chain connections.
Integration solutions with major projects like MakerDAO, Aave, expanding liquidity and reducing volatility.
The CFG Token system is both secure and supports governance, with a team and partners from leading financial–technology sectors.
What is Centrifuge?
Centrifuge is the world's first blockchain protocol that converts real assets such as real estate, commodities, vehicles… into digital assets that can be traded on DeFi platforms. According to Centrifuge's report, hundreds of businesses have used this protocol to access new capital, while investors receive stable yields exceeding many traditional financial products.
"Centrifuge enables every organization to convert physical assets into digital assets, lowering traditional barriers and promoting financial democratization."
Lucas Vogelsang, CEO of Centrifuge, at the Polkadot Decoded 2023 event, source: Centrifuge Blog
Thanks to this innovation, real assets — which were previously limited in liquidity or difficult to value — can now easily raise capital, participate in DeFi Liquidity Pools, and accelerate the digitization of global finance.
What are the highlights of Centrifuge?
Centrifuge stands out in its ability to tokenize real-world assets (RWA), growing TVL, and integrating with leading DeFi protocols, significantly expanding its application scope and liquidity.
How is the growth of Centrifuge's TVL?
The TVL (Total Value Locked) of Centrifuge has doubled steadily every month since launch, reflecting significant demand for converting real assets into digital assets on the blockchain.
Many types of assets such as financial invoices, real estate, royalties… are brought by businesses to Centrifuge to be tokenized into NFTs and used as collateral, opening a new cash flow for DeFi valued in billions of USD.
"The growth rate of Centrifuge's TVL shows market confidence and the potential to explore the RWA sector on the blockchain."
Eric Chen, CEO of Injective Labs, noted in the DeFi 2024 report, source: TinTucBitcoin
Notably, RWA TVL accurately measures the real value that organizations are collateralizing to finance or raise capital, creating an unprecedented level of transparency for the capital market.
What role does Centrifuge play in the Polkadot ecosystem?
Centrifuge is the platform with the highest TVL in the Polkadot ecosystem and is among the first projects to deploy parachains on Polkadot, helping to take advantage of fast processing speeds and low fees.
At the same time, Tinlake – Centrifuge's DApp – is designed to leverage the huge liquidity on Ethereum, creating an intelligent cross-chain bridge with the CFG Token that can move easily between blockchains.
"Centrifuge's construction on Polkadot and Ethereum optimizes both fee efficiency and scalability, attracting a large number of institutional investors."
Gavin Wood, Founder of Polkadot, in dialogue with TinTucBitcoin 2023
The choice to develop simultaneously on Polkadot and Ethereum helps Centrifuge rank among the top interoperability solutions, prioritizing user experience while ensuring speed and competitive fees for RWA transactions.
How does Centrifuge integrate with major DeFi projects?
Centrifuge collaborates with MakerDAO to bring real assets into the collateral mechanism of DAI and is building the first real asset market on Aave, helping to increase liquidity and reduce asset volatility for major DeFi protocols.
This integration brings dual benefits: Asset owners can quickly withdraw capital from DeFi while minimizing the risk of instability for the protocol thanks to collateral assets that are less volatile compared to coins and tokens.
"Expanding into the real asset markets such as real estate and invoices on DeFi will help the entire industry grow sustainably, minimizing the impact of cryptocurrency price volatility."
Danny Ryan, Ethereum Foundation research expert, answers CoinDesk 2024
This is also an inevitable development direction that helps DeFi become friendlier to traditional investors, opening a wave of blockchain adoption for the entire real financial system.
How does Centrifuge develop according to the Fintech model?
Centrifuge is a significant advancement in Fintech, transforming traditional centralized financial infrastructure, which prioritizes large banks, into an open finance model with blockchain that promotes equitable access to capital.
By using Smart Contracts, borrowers from all over can access online funding without going through banks, significantly shortening time and reducing capital raising costs.
Independent from banks: Businesses receive capital directly from DeFi through smart contracts.
Outstanding liquidity: The process of digitizing assets and providing digital funding has eliminated much of the bureaucracy, making it very fast even for small assets.
Flexible and transparent: Better data, transparent contracts, and pool investors can control assets at all times, minimizing risk through multiple verification layers.
According to a Deloitte survey in 2024, fintech solutions combining blockchain like Centrifuge will lead the trend of transforming the global financial world thanks to their automation, transparency, and potential to save 30-50% in intermediary costs compared to traditional models.
How does Centrifuge work?
Centrifuge operates based on two core components: Centrifuge Chain and the Tinlake DApp, creating a transparent and flexible ecosystem for tokenization, funding, and governance on the blockchain platform.
How does Centrifuge Chain operate?
Centrifuge Chain — built on Substrate Parity and directly connected to Ethereum — is the gateway to bringing real assets like contracts, invoices, real estate… to the blockchain in the form of unique NFTs, ensuring authenticity through automated protocols and expanding interoperability with various platforms.
"Centrifuge Chain uses Substrate to quickly integrate into the Polkadot ecosystem, while expanding to Ethereum and many other major blockchains."
Stefan George, CTO of Gnosis, commented at the ETHCC 2023 seminar
Practical process: A company like Paper Records signs and sends invoices to Spotify via the Centrifuge P2P network, receives electronic signature verification, then tokenizes the invoice into an NFT representing the receivable. This NFT invoice is introduced into the Centrifuge Chain, becoming collateral to optimize capital or rotate assets even between different blockchains.
One strength is that verification occurs on-chain and can be audited by stakeholders, ensuring reliability, preventing fraud, and providing transparency throughout the entire digitized asset lifecycle.
What is Tinlake and what role does it play in Centrifuge?
Tinlake is a DApp on Ethereum, connecting Centrifuge Chain with the global DeFi ecosystem, allowing investors and borrowers to co-fund, pooling assets into common Pools.
Tinlake operates on an open Smart Contract model, with automated approval, funding, and yield distribution processes, ensuring transparency and eliminating most traditional manual management costs.
"Tinlake opens up funding cooperation opportunities between global investors and small and medium enterprises, creating a more diverse, reputable, and stable asset base for DeFi."
Anna Carroll, DeFi analyst, The Block Research report, June 2024
In addition to the ability to integrate quickly into major Liquidity Pools (e.g., MakerDAO, Aave), Tinlake also allows for better risk distribution through multiple layers of financialization, helping both investors and businesses be flexible and optimize yields in the digital asset market.
Basic information about CFG Token
CFG is the utility and governance token of Centrifuge, issued on both Centrifuge Chain and Ethereum (in the form of WCFG ERC-20), with a fixed total supply and flexible governance rights.
Name: Centrifuge
Code: CFG
Platform: Centrifuge Chain
Token standard: ERC-20
Type: Utility, Governance
Total supply: 425,000,000 CFG
Circulating: Updating
What utilities does the CFG Token have?
CFG Token is used for staking to secure the network, pay transaction fees, earn rewards from Pools, and participate in project governance decisions through voting — factors that enhance transparency and decentralization.
It is used as transaction fees on the chain. This fee is burned — reducing the token supply, increasing the long-term value of CFG.
As rewards for Providers providing liquidity to Tinlake Pools.
Participate in governance: Voting on major system decisions.
WCFG ERC-20 facilitates easy movement between Ethereum and Centrifuge Chain via Bridge.
Additionally, Centrifuge aims to use on-chain governance to maintain a stable supply, minimize inflation risks, and help the Token develop sustainably.
How is CFG Token allocated?
Target group Percentage (%) Ecosystem 8.3% Development funding 11.8% Community funding 7.1% Project establishment fund 11.8% Community Sale 9.5% Core contributors 27% Investment funds 17.1% Rewards & funding 7.3%
This allocation reflects a balance between promoting ecosystem development, prioritizing the core team, and facilitating community contributions, as well as long-term participation from institutional investors.
How to securely store CFG Tokens?
With ERC-20 standards, CFG can be stored in prominent wallets such as Metamask, Trust Wallet, or any wallet that supports ERC-20 Tokens. For absolute security, users should prioritize Cold wallets like Ledger, Trezor, especially when holding large amounts over the long term.
What is the latest roadmap & updates of Centrifuge?
Although not publicly disclosing a detailed roadmap, Centrifuge openly focuses on developing strategic factors:
Expanding collaborations to bring RWA into large pools like Aave, receiving partners from outside the cryptocurrency field to grow TVL.
Ready to launch the official parachain on Polkadot when the technology is complete.
At the same time, Centrifuge continuously improves Smart Contract architecture, cross-chain bridges, and expands utility with partners outside the cryptocurrency industry, creating a solid foundation for long-term growth.
Who are the project team, investors, and partners of Centrifuge?
Centrifuge brings together a team of experts from top global corporations, investment funds, and organizations, along with a vast network of strategic partners in finance, fintech, and technology.
What is remarkable about the founding members and the Centrifuge team?
The founding and development team of Centrifuge includes personnel who have held key roles in organizations such as Consensys, Electric Coin Company, Parity, Goldman Sachs, Credit Suisse, SAP, Microsoft, Deloitte, United Nations, Federal Reserve…
"We gather a multidisciplinary team from finance, technology, law to risk management to build a standard RWA platform for the digital future."
Martina Grunwald, COO of Centrifuge, at the Polkadot 2024 seminar
The diversity and experience of this team is why Centrifuge is highly regarded by major investment funds for its development capabilities, governance, and driving financial innovation globally.
Who are the major investors in Centrifuge?
Top investment funds with strong portfolios in both technology and finance have chosen to support Centrifuge, notably:
Galaxy Digital
Fenbushi Capital
BlueYard Capital
Maven 11
IOSG Ventures
High-Tech Gründerfonds
Centuries Group
ConsenSys Ventures
BlockTower Capital
The participation of these major funds not only provides strong financial resources but also supports the network in connecting with projects and strategic partners globally.
Which partners are developing together with Centrifuge?
Centrifuge has strategic partnerships with many large projects and protocols, both inside and outside the cryptocurrency industry, including:
MakerDAO: Bringing RWA into the collateral asset portfolio of DAI.
Aave: Developing a diverse real asset market for the largest lending protocol in DeFi.
Polkadot: Technical support, expanding cross-chain connectivity.
Chainlink: Connecting and verifying off-chain data for digitized assets.
Centrifuge can continuously expand its ecosystem, increasing utility and long-term value for investors, businesses, and the global cryptocurrency community.
Summary: Is Centrifuge the future of RWA on DeFi?
Centrifuge is an innovative project that provides solutions for digitizing real assets using blockchain, promoting connections between traditional businesses and the DeFi sector. This protocol is highly regarded for its ability to bring RWA onto the blockchain in the form of NFTs, integrating with MakerDAO and Aave to increase TVL, reduce volatility risks, and enhance capital access for all.
"Centrifuge lays the foundation for the era of digitized real assets, opening doors for businesses of all sizes to effectively leverage DeFi capital like never before."
Comments from DeFi experts at TinTucBitcoin, May 2024
Despite market volatility, Centrifuge has a significant technological advantage, an experienced team backed by many investment funds, a realistic development roadmap, and continuous collaboration with leading organizations. This is a promising choice for long-term investors with expectations in the RWA sector on a modern blockchain platform.
Frequently asked questions
Is Centrifuge safe for business assets?
Centrifuge uses Smart Contracts, on-chain verification, and collaborates with Chainlink to minimize fraud risk, with security highly rated by blockchain and security experts.
What is driving the rapid growth of Centrifuge's TVL?
TVL has surged thanks to the ability to tokenize various types of real-world assets, integrating with large Liquidity Pools like MakerDAO, Aave, expanding capital sources and diversifying collateral assets.
Does the CFG Token have practical utility?
CFG is used for staking, paying transaction fees, earning rewards, and participating in governance, while ensuring transparent operations and long-term inflation resistance through reasonable distribution.
Does the project plan to expand to other blockchains?
Centrifuge has a standardized bridge to Ethereum and continuously develops connections with many major blockchains, increasing interoperability and cross-chain application.
Which organizations is the Centrifuge development team from?
Key members have experience from Consensys, Credit Suisse, Microsoft, Deloitte, United Nations, Federal Reserve, ensuring top technology and financial competency.
Is an audit required to participate in Tinlake Pools?
All Pools are verified, transparent on the Centrifuge Chain, and integrate external audits for large transactions, increasing trust and security for investors.
Is Centrifuge a good choice for long-term investors?
With extensive technology, strong growth rates, major partners, and high practical application, Centrifuge is a project worth considering for the long term in the RWA sector on blockchain.
Source: https://tintucbitcoin.com/centrifuge-cfg-la-gi/
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