The DeFi platform Centrifuge amalgamates real-world assets (RWAs) with blockchain technology to offer a unique approach toward liquidity and financing. Here are the key features and objectives:
- Tokenization of Real-World Assets: Centrifuge enables users to tokenize real-world assets such as invoices, real estate, and royalties. These assets are represented as NFTs, making them usable in the DeFi ecosystem.
- Decentralized Protocol: It operates on a decentralized network that ensures security, transparency, and innovation. Open protocols are maintained by developers to build financial applications.
- Integration with DeFi: Through Tinlake, an application built on Ethereum, Centrifuge integrates RWAs with DeFi platforms. This setup allows for the extraction of liquidity and investment into RWAs.
- Yield Generation and Financing: The platform opens new financing avenues for asset holders and provides pooling of tokenized assets and yield opportunities for DeFi investors.
- CFG Token: Centrifuge’s native token, CFG, is used for governance, rewarding validators, and incentivizing network participation.
Centrifuge aims to bridge traditional finance with DeFi, enabling real economic activity on the blockchain while addressing regulatory compliance and sector adoption. Developed within the Polkadot ecosystem, it enhances its capabilities for interoperability and potential to revolutionize finance.