Centrifuge is an asset financing protocol that operates in a decentralized manner. Its primary aim is to connect real-world assets with decentralized finance (DeFi) in order to reduce the cost of capital for small and mid-size enterprises (SMEs) and offer investors a stable income source. The project's main objective is to generate profits that are not dependent on the volatility of cryptocurrency assets, and the developers are working towards the transfer of real monetary value from fiat currencies to cryptocurrencies.
Centrifuge enables companies to access the liquidity provided by DeFi by tokenizing their real assets. These tokens can then be used as collateral to obtain financing through Tinlake, a decentralized application (DApp) lending protocol. The Centrifuge blockchain is built on Polkadot (DOT) for fast transactions and low fees, while Tinlake, the financial DApp, relies on Ethereum (ETH) for accessing liquidity.
Centrifuge offers liquidity to all participants, and investors receive income and rewards in the form of CFG tokens. It connects various assets such as invoices, real estate, and royalties with the world of decentralized finance (DeFi). Moreover, borrowers benefit from the ability to finance their real assets without the involvement of traditional banks or other intermediaries.
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