Centrifuge

Centrifuge is a decentralized protocol focused on asset financing that bridges decentralized finance (DeFi) with real-world assets (RWA). Its mission is to reduce capital costs for small and medium-sized enterprises (SMEs) while offering investors a stable income source. The project aims to generate returns unlinked to the volatility of typical crypto assets by facilitating the flow of real monetary value from fiat currencies into cryptocurrencies.

Businesses use Centrifuge to tap into DeFi liquidity by tokenizing real assets, which they then use as collateral to obtain financing via Tinlake — a decentralized lending application (DApp). The Centrifuge blockchain leverages Polkadot (DOT) to ensure fast transactions and low fees, while Tinlake accesses liquidity from Ethereum (ETH).

Centrifuge democratizes liquidity access, with investors earning income and rewards paid in CFG tokens. The protocol connects assets like invoices, real estate, and royalties to DeFi, allowing borrowers to finance real assets directly without relying on traditional banks or intermediaries.