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Centrifuge is a DeFi project designed to be compatible with both Ethereum and Polkadot using the Substrate framework.
The Centrifuge ecosystem consists of two main products: Centrifuge Chain and Tinlake. The former is a primary blockchain driven by its native governance token called Radial (RAD), while Tinlake is a dApp that uses smart contracts for asset securitization.
The project aims to bridge the fintech and decentralized finance spaces, allowing businesses to tokenize real-world non-fungible assets (NFTs) such as invoices, licensing fees, and collateralized loans to raise capital and gain liquidity without traditional banking involvement.
To achieve this goal, investors provide liquidity to Centrifuge's funding pools using two different token structures: TIN and DROP. Both tokens represent liquidity provided by users to Centrifuge's pools and offer interest to holders over time. However, TIN carries more risk with the potential for higher yields, while DROP provides protection against defaults and offers lower returns to investors.
In addition to empowering the DeFi space with NFTs, Centrifuge enables businesses to add liquidity to assets that typically lack liquidity and access more funds without going through the expensive traditional process of securitization. |
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Post time 10-10-2023 06:32:04