Centrifuge: In this article, we cover a detailed review of Centrifuge. How does Centrifuge Crypto work & Are important features?
About Centrifuge
Centrifuge is a decentralized asset financing protocol. It connects decentralized finance (DeFi) with real-world assets (RWA) while trying to lower the cost of capital for small and mid-size enterprises (SMEs) and provide investors with a stable source of income. The main goal of the project is to generate profits that are not tied to volatile crypto assets; the developers are pursuing the task of transferring real monetary value from fiat to cryptocurrencies.
Companies are using Centrifuge to access the liquidity that DeFi has to offer. They can tokenize real assets and use these tokens as collateral to access financing through Tinlake, a decentralized application (DApp) lending protocol. The Centrifuge blockchain is built on Polkadot (DOT) for speed and low fees, while its financial DApp Tinlake is built to access Ethereum (ETH) liquidity.
They provides liquidity to everyone and investors receive income and rewards in the form of CFG tokens. They links assets such as invoices, real estate and royalties with decentralized finance (DeFi). Additionally, borrowers benefit from the fact that they can finance their real assets without banks or other intermediaries.
Centrifuge Coin Price
| Coin Basic | Information |
|---|---|
| Coin Name | Centrifuge |
| Short Name | CFG |
| Circulating Supply | 473,746,063 CFG |
| Total Supply | 526,620,610 CFG |
| Support | 24/7 |
| Official Project Website | Click Here To Visit Project Website |
The Price Live Data
The live price today is $0.683503 USD with a 24-hour trading volume of $1,101,166 USD. They CFG to USD price in real-time. This is up 2.16% in the last 24 hours. The current ranking is #197, with a live market cap of $323,806,025 USD. It has a circulating supply of 473,744,910 CFG coins and the max. supply is not available.
Who Are the Founders of Centrifuge?
Centrifuge was launched in 2017 by Lucas Vogelsang and Martin Quensel.
Lucas Vogelsang is the founding engineer at Centrifuge and holds the position of the company’s CEO. Vogelsang co-founded e-commerce startup DeinDeal in 2010. After successfully selling DeinDeal to Ringier, he started working on another startup — KaufDA. Later, Vogelsang relocated to Silicon Valley to join Taulia as technical manager. In October 2017, he co-founded Centrifuge.
Martin Quensel is a co-founder at Centrifuge and its current COO. Prior to Centrifuge, he co-founded Taulia. Quensel began his career at SAP as a software developer and architect.
How it works
Borrow
Finance your real-world assets by accessing affordable DeFi capital without banks or other intermediaries.
Lend
Gain access to a more diversified and stable junior and senior yield backed by productive assets from the real-world – invoices, real-estate, revenue-based financing, and more.
Vote
Become active in protocol governance to help shape the future of Centrifuge through active participation and voting.
How Many Centrifuge (CFG) Coins Are There in Circulation?
CFG is the native token of the Centrifuge and it powers the entire network. There are three major use cases for CFG: staking, paying transaction fees and governance participation. The token is also used to reward the liquidity providers on Tinlake. As of June 2021, the total supply is 425,000,000 CFG, growing at a rate of 3% per year.
The total supply of CFG tokens are distributed as follows: 27% to core contributors, 17.1% to total backers, 7.3% to rewards and grants, 9.5% to the community sale, 11.8% to foundation endowment, 7.1% to community grants, 10.8% to development grants and 8.3% to the early ecosystem.
CFG sale took place on May 26, 2021, on Coinlist. The event was held in two stages and the supply of tokens was limited at 17 million for each round.
The platform for onchain finance
Transparency
Obtain end-to-end transparency as the entire capital structure, securitization, and servicing of debt facilities is brought onchain — multi-tranching, NAV, privacy-first tokenization, securitization, reporting, and more.
Lower cost of capital
A decentralized infrastructure that compresses costs of traditional off-chain securitization and uses open-source services to reduce the intermediary costs and complexity of TradFi
Equal & open participation
Decentralized onchain governance provides equal, open access to all parties in the securitization process — new issuer proposals, underwriting, servicing, and more.
DeFi liquidity access
Leverage the entire capital stack by accessing senior and super senior capital from the leading DeFi stablecoin protocols.
Diversification
Diversify stablecoin and treasury collateral with yield correlated to real-world assets, stabilizing long-term value and protocol health.
Security
A protocol with legal recourse and strong regulatory and compliance requirements — KYC, sanctions screenings, accredited invester checks – as well as robust technical audits.
What Makes Centrifuge (CFG) Unique?
The Centrifuge protocol tokenizes real-world assets by converting them to non-fungible tokens (NFTs). After that, they are funded through Tinlake. Tinlake is the first DApp built on the Centrifuge chain. It was created to access liquidity on Ethereum, while CFG has its own bridge to Ethereum.
The features of Centrifuge include integration with other DeFi protocols. This feature allows Centrifuge users to get liquidity without slowdowns and protects DeFi protocols from destabilizing events by adding uncorrelated collateral. As a result, the cumulative risks are reduced and predatory lending and banks are replaced by smart contracts.
As of June 2021, Centrifuge has the highest total value locked (TVL) on the Polkadot ecosystem. Moreover, the project claims to be among the first to launch a parachain on Polkadot. When the team designed the Centrifuge chain, operational speed and low fees were prioritized.
How Is the Centrifuge Network Secured?
Users pay transaction fees in CFG tokens and transaction aggregators on Polkadot receive a share of the fee for processing and storing data. These measures, as well as the NPoS (Nominated Proof-of-Stake) mechanism and the CFG rewards, encourage users to operate fairly and select data collators that provide censorship resistance.
Overall, most of the security comes from the Polkadot relay chain. The use of Polkadot’s protective mechanisms provides Centrifuge with a high level of security at a low cost.
Conclusion: Centrifuge
In conclusion, They emerges as a pioneering force in the realm of decentralized asset financing protocols, bridging the worlds of decentralized finance (DeFi) and real-world assets (RWA). Its primary objective revolves around democratizing access to capital for small and mid-size enterprises (SMEs) while concurrently furnishing investors with a dependable income stream. By striving to mitigate the cost of capital for SMEs and providing a stable avenue for investors, Centrifuge not only enhances financial inclusivity but also fosters a more resilient and diverse financial ecosystem.
At its core, the project’s overarching aim is to extricate profits from the caprices of volatile crypto assets, thereby anchoring them to more stable foundations. Through this endeavor, the developers are committed to orchestrating the seamless transition of tangible monetary value from fiat currencies to cryptocurrencies, thereby fortifying the decentralized finance landscape.
As they continues to evolve and garner traction within both the DeFi and traditional finance spheres, it stands as a testament to the transformative potential of blockchain technology. With its innovative approach and steadfast dedication to driving financial empowerment, This is poised to redefine the dynamics of asset financing and pave the way for a more equitable and resilient financial future.
Centrifuge FAQ
What is Centrifuge?
This is a decentralized asset financing protocol that acts as a bridge between decentralized finance (DeFi) and real-world assets (RWA). It aims to lower the cost of capital for small and mid-size enterprises (SMEs) while offering investors a stable source of income.
How does Centrifuge work?
They enables users to tokenize real-world assets, such as invoices, real estate, or other forms of collateral. These assets are then represented on the blockchain as non-fungible tokens (NFTs) or other cryptographic assets, making them tradable and usable within the DeFi ecosystem.
What problem does Centrifuge solve?
They addresses the challenge of accessing affordable capital for SMEs by providing a platform where these businesses can tokenize their assets and access liquidity without relying on traditional financial intermediaries. It also offers investors an opportunity to diversify their portfolios with assets that generate stable returns.
How does Centrifuge lower the cost of capital for SMEs?
By tokenizing real-world assets, they enables SMEs to access liquidity without the need for expensive intermediaries or traditional financing arrangements. This can reduce the cost of capital for SMEs by streamlining the borrowing process and opening up access to a wider pool of investors.
What are the benefits for investors?
Investors using they can gain exposure to a diversified range of real-world assets while enjoying a stable source of income. Unlike investments tied to volatile crypto assets, Centrifuge assets offer a more predictable return profile, making them attractive for investors seeking stability in their portfolios.