The Centrifuge is planning to launch its native token soon
Centrifuge is a decentralized asset financing protocol. It bridges real-world assets into DeFi, aiming to bring down the cost of capital for SMEs and simultaneously provide investors with a stable source of yield. The protocol’s goal is to bring profit uncorrelated from volatile cryptocurrency assets.
Using Centrifuge, companies can tokenize real-world assets. Afterward, they use these tokens as collateral to access financing through Tinlake, the protocol’s asset-backed lending Dapp.
Tinlake connects its users to the DeFi ecosystem. It also enables them to borrow from many other protocols. The Centrifuge (CFG) token powers the chain. Furthermore, the token empowers its holder with governance, thus provides the incentive for validators to operate it. As a result, any business can originate their real-world asset on-chain thanks to Centrifuge and Tinlake, along with accessing liquidity through the protocol.
The Centrifuge is launching the CFG token’s ICO on May 27, 2021, and the sale will end on May 31, 2021. The company aims to raise $2,422,500 by trading 6,375,000 tokens, and the ICO price is $0.38 per token. Users can trade BTC, USDC, ETH, and USDT for CFGs.
What other advantages does this platform offer?
According to Centrifuge, it has recently entered real-world asset TVL – a new category of Total Value Locked growth. After tokenizing, real-world assets, such as real estate, royalties, invoices, and other assets, can potentially bring trillions in new assets to DeFi. This particular protocol tokenizes real-world assets by converting them into NFTs on its Chain. Furthermore, real-world asset TVL measures the active RWA value being used for financing on Centrifuge.
Currently, the company has the highest TVL in the Polkadot ecosystem. It will also be among the first to launch a Parachain on Polkadot. The team decided to build Centrifuge chain on Polkadot for low fees and speed, while Tinlake, its financing Dapp, is built to access the massive liquidity on Ethereum. On the other hand, CFG has its own bridge to Ethereum.
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