Centrifuge (CFG)

 Basics

• Started in: 2018
• Mainnet release: 26-5-2020
• Based in:
• Decentralized asset financing protocol.
• From The Defiant (28-8-2020):

"Centrifuge lets businesses get the money that they need to run, without using a bank. We created an open place that anyone can use to lock up assets (ex. a house or an invoice) to get a loan."

Token

Utility

• From The Defiant (28-8-2020):

"The Radial (RAD) token directly empowers users to operate, control, and gain value from the system. RAD functions differently and is used for both standard network functions such as chain security and transaction fees, as well as Centrifuge-specific utility, including on-chain governance and rewards to incentivize users to provide liquidity to Tinlake pools."

• From The Defiant (27-5-2020):

"NFTs representing real-world assets are pooled together. Next, two sets of ERC20 tokens are issued against them, TIN and DROP. TIN takes the risk of default first but also receives higher returns. DROP is protected against defaults by the TIN token and receives stable and usually lower returns. Investors can purchase TIN and DROP tokens with Dai or USDC. The user who put up the collateral takes the stablecoins used to buy TIN and DROP as a loan. TIN and DROP holders receive interest asset holders pay for their loan."

Stablecoin

• From their announcement (26-5-2020):

"DROP and TIN are the ERC20 tokens Tinlake issues against a loan portfolio. These tokens are stable, backed by the individual loans, but also interest-bearing: this creates a new way to stake in DeFi"

Tech

• Whitepaper can be found [insert here].
• Code can be viewed [insert here].
• Built on: Substrate parachain
• Programming language used:

Transaction Details

• Capacity (TPS):
• Latency:

How it works

• From The Defiant (27-5-2020):

"The system enables users to tokenize real-world assets in the form of non-fungible tokens (NFTs), which they can then use as collateral to take out loans. Meanwhile, investors can buy tokens representing this collateral and expect returns that are less correlated with cryptocurrencies than most or all other assets in DeFi.

Centrifuge has two parts: Centrifuge Chain and Tinlake. Centrifuge Chain is a proof-of-stake blockchain built with Parity Technologies’ Substrate framework, which is where assets are tokenized. It had 10 validators at launch. Tinlake is an open source Ethereum app which enables the creation of asset pools for users to borrow against and invest in.

Centrifuge submitted two MIP6 applications for MakerDAO to include asset pools as collateral for Dai. MakerDAO opened up Dai to different types of collateral to make sure there’s enough liquidity to back the stablecoin. It has already included trusted assets like USDC and wBCT as collateral, and tokenized real-world could very well come next." 

Interoperability

• From The Defiant (28-8-2020):

"Centrifuge Chain enables users to bring their assets on-chain as non-fungible tokens (NFTs). NFTs are easily bridged to Ethereum from day one. This enables businesses to put up these NFTs as collateral in Tinlake pools, our asset-backed financing Dapp on Ethereum."

Their Other Projects

Tinlake

• From their announcement (26-5-2020):

"Tinlake is our securitization Dapp on Ethereum which lets investors and borrowers finance their own asset pools. Tinlake’s smart contracts are open source and integrate easily into the DeFi ecosystem. Tinlake uses Centrifuge Chain to originate individual non-fungible assets used as collateral for loans."

• From CoinDesk (23-4-2021):

""Real world" assets have entered DeFi, as the Maker protocol reportedly just minted $38,000 of dai stablecoins to finance a mortgage loan. The proposal, passed April 14 and executed two days later, allows the Tinlake blockchain protocol to serve as a bridge between New Silver, a real estate loan company, and MakerDAO. Two tranches of interest-bearing tokens will be issued under the Ethereum blockchain’s ERC-20 token standard – DROP and TIN – against non-fungible tokens (NFTs) based on individual deposits from New Silver."

Roadmap

• Can be found [Insert link here].

Audits

• Bug bounty program can be found [insert here].

Usage

Projects that use or built on it

• From their announcement (26-5-2020):

"ConsolFreight funded 49 freight invoices so far totaling 278k Dai. Their pool for freight shipping invoices is now open for investment, check out more here.

Paperchain finances streaming revenue to artists & labels. Their pool for Spotify invoices is now open for investment, check them out here."

Team, Funding, Partners

Team

• Full team can be found [here].

Funding

• Raised $4M (2-11-2022) from Coinbase Ventures, BlockTower Capital, Scytale, L1 Digital

Partners

• Acala's aUSD Ecosystem Fund; one of the founding parachains to grow the Acala stablecoin (23-3-2022)