What is Centrifuge (CFG)? In the current Defi (Dencentralized Finance) market, Lending and Borrowing solutions mostly only support mortgaging Crypto assets. While there are many types of real-life assets that can be mortgaged such as: Real estate, cars… Centrifuge was born to solve this problem.
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What is Centrifuge (CFG)?
Centrifuge is a project in the Credit Protocol segment that brings Real-world Assets to the Defi world. The purpose is to help reduce capital costs for Borrowers (Small and Medium Enterprises) while providing stable profits for Lenders (Lenders).
Operating Model
Centrifuge operates based on two main products
- Centrifuge Chain: Layer 1 belongs to the Polkadot ecosystem. Using Polkadot’s Substrate framework technology helps improve security and speed. Here borrowers can mint NFTs (Non-fungible Tokens) representing their Real-world Assets.
- Tinlake: The product is built on Ethereum providing Lending and Borrowing solutions.
How it works
- Step 1: After successful KYC, the borrower Mint NFT above Centrifuge Chain represent Real-world Assets their.
- Step 2: Lenders provide liquidity through Pool belong to Tinlake and receive stable interest rates.
- Step 3: NFTs on Centrifuge will do Bridge to the network Ethereumthen use it as collateral to borrow property on Tinlake App and have to pay a certain fee.
Project Highlights
- Centrifuge enters a niche market that very few projects on Defi can do.
- Possessing a large amount of TVL (Total Value Lock) reaching over $300M and still showing signs of increasing every day.
- Integrating many large DApps such as: Maker DAO, Aave ensures abundant liquidity.
Core Team
The Centrifuge team is a collection of many members from different organizations such as Microsoft, Goldman Sachs, Consensys…
Michael Ruzic-Gauthier: Chief Executive Officer & CEO
- He graduated with a master’s degree in biochemistry from Dalhousie University, Canada in 2013.
- He spent more than 2 years working as an investment collaborator at NetScientific PLC – A fund that invests in technology companies.
- He spent more than 2 years working as an analyst at Berenberg – One of the oldest banks in the world.
Romina Bungert: Chief Finance Officer & CFO
- Graduated with a master’s degree in management from ESCP Business School in 2015.
- Previously held the position of COO (chief operating officer) at Upvest – an investment application that raised $42M.
- Previously held the position of COO at DSTOQ – An application that allows global stock investment.
Investor
- After 6 rounds of capital, Centrifuge raised $15.8M from 25 different investors. Notably, there are Coinbase Venture, IOSG Ventures, Moonwhale Ventures…
Tokenomics
Centrifuge has 2 Tokens:
- CFG: Native Token on Centrifuge Chain.
- WCFG: Is the Wrapper Token version of CFG on Ethereum.
Overview of Centrifuge Token
- Name: Centrifuge
- Ticker: CFG, WCFG
- Blockchain: Centrifuge Chain and Ethereum
- Contract Ethereum: 0xc221b7E65FfC80DE234bbB6667aBDd46593D34F0
- Total supply: 425,000,000
Token Allocation
- Early Backers: 18.5% for early investors.
- Core Contributors: 29.2% is for the Project Team.
- Early Ecosystem: 9% is for early contributors to the system.
- Community Grants: 20.4% for the community.
- Foundation Endowment: 12.7% used as asset fund.
- Community Sales: 10.3% sold through Coinlist.co.
Token Release Schedule
- Core Contributors and investors soon will Unlock monthly starting from July 2021.
- Members who join the Team will be locked for 48 months after that Vesting within 12 months.
- Every year there will be 3% gain mint. mint out to pay Validators, Lock Dot participants in Parachain and liquidity providers.
Token Use Case
CFG is used for the following purposes:
- Project management.
- Project security: To become a Validator or Delegator, you need to hold CFG Token.
- Rewards for liquidity providers.
Exchanges
Currently CFG and WCFG assets are being traded on Coinbase, OKX, Coinlist, Uniswap…
Project Information Channel
- Website: https://centrifuge.io/
- Twitter: https://twitter.com/centrifuge
- Discord:
Summary
Centrifuge used to be a project that received a lot of attention from the community when selling Community Sale through Coinlist. Since then, it seems like the community no longer pays much attention.
However, looking at indicators such as TVL and TVL Growth, we can see that the project is developing very well. Join Hak research to follow the development of this project.