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About Centrifuge
Key Points:
- Centrifuge is a decentralized asset financing protocol connecting DeFi with real-world assets.
- It aims to lower the cost of capital for SMEs and provide investors with a stable source of income.
- Companies can tokenize real assets and use them as collateral to access financing through Tinlake.
- Centrifuge provides liquidity to everyone, and investors receive income and rewards in the form of CFG tokens.
Founders:
- Lucas Vogelsang (CEO and founding engineer)
- Martin Quensel (COO and co-founder)
Unique Features:</h3
About Centrifuge
At the forefront of decentralized finance, Centrifuge is a pioneering platform that converges traditional finance with the vast potential of blockchain technology.
Introducing Centrifuge (CFG): A Comprehensive Overview
Centrifuge is a decentralized asset financing protocol that bridges the gap between decentralized finance (DeFi) and real-world assets (RWA), with the ultimate goal of reducing the cost of capital for small and mid-size enterprises (SMEs) and providing investors with a stable source of income. By doing so, the project aims to generate profits that are decoupled from the volatility of crypto assets, thereby facilitating the transfer of tangible monetary value from fiat to cryptocurrencies.
Companies are leveraging Centrifuge to tap into the vast liquidity offered by DeFi. By tokenizing real-world assets, they can utilize these tokens as collateral to secure financing through Tinlake, a decentralized lending protocol. Notably, the Centrifuge blockchain is built on Polkadot (DOT), ensuring swift and cost-effective transactions, while its financial DApp, Tinlake, is designed to seamlessly access Ethereum (ETH) liquidity.
Centrifuge democratizes access to liquidity, empowering investors to reap income and rewards in the form of CFG tokens. By bridging the gap between traditional assets – including invoices, real estate, and royalties – and decentralized finance (DeFi), Centrifuge unlocks new opportunities. Furthermore, borrowers can bypass traditional intermediaries, such as banks, and secure financing for their tangible assets.
The Visionaries Behind Centrifuge: Meet the Founders
In 2017, Centrifuge was founded by Lucas Vogelsang and Martin Quensel, marking the inception of a pioneering endeavour.
Lucas Vogelsang, the visionary founding engineer and CEO of Centrifuge, boasts an impressive entrepreneurial pedigree. In 2010, he co-founded DeinDeal, a pioneering e-commerce startup, which he successfully sold to Ringier. Subsequently, Vogelsang went on to establish KaufDA, another innovative venture. Following a stint as technical manager at Taulia in Silicon Valley, he co-founded Centrifuge in October 2017, marking the beginning of a new chapter in his illustrious career.
Martin Quensel, a visionary entrepreneur, serves as the co-founder and current Chief Operating Officer (COO) of Centrifuge. His illustrious career is marked by the co-founding of Taulia, a testament to his innovative spirit. Quensel’s professional journey commenced at SAP, where he honed his skills as a software developer and architect, laying the foundation for his future successes.
Unveiling the Unparalleled Attributes of Centrifuge (CFG)
The Centrifuge protocol pioneers the tokenization of real-world assets, seamlessly converting them into unique non-fungible tokens (NFTs). Subsequently, these assets are financed through Tinlake, the inaugural decentralized application (DApp) built on the Centrifuge chain. Notably, Tinlake was designed to tap into Ethereum’s liquidity, while CFG boasts its own dedicated bridge to Ethereum, facilitating seamless interactions.
The hallmark of Centrifuge lies in its seamless integration with other DeFi protocols, thereby enabling users to access liquidity without interruptions. This synergy also serves as a safeguard, shielding DeFi protocols from destabilizing events by introducing uncorrelated collateral, which in turn mitigates cumulative risks and supplants traditional predatory lending and banking systems with smart contracts.
As of June 2021, Centrifuge boasts the highest total value locked (TVL) within the Polkadot ecosystem, a testament to its remarkable success. Notably, the project takes pride in being one of the pioneers to launch a parachain on Polkadot. During the design phase of the Centrifuge chain, the team placed a strong emphasis on optimizing operational speed and minimizing fees.
What Is the Circulating Supply of Centrifuge (CFG) Coins?
CFG, the native token of the Centrifuge, serves as the linchpin of the entire network. It has three primary use cases: facilitating staking, covering transaction fees, and enabling governance participation. Additionally, CFG is utilized to incentivize liquidity providers on Tinlake. As of June 2021, the total supply of CFG stands at 425,000,000, with a yearly growth rate of 3%.
The total supply of CFG tokens is allocated as follows: 27% is reserved for core contributors, 17.1% is designated for our esteemed backers, 7.3% is earmarked for rewards and grants, 9.5% is allocated to the community sale, 11.8% is set aside for the foundation endowment, 7.1% is dedicated to community grants, 10.8% is allocated to development grants, and 8.3% is reserved for the early ecosystem.
The CFG token sale was successfully conducted on May 26, 2021, via Coinlist, featuring a two-stage event with a limited token supply of 17 million for each round.
The Security Architecture of the Centrifuge Network
Users are incentivized to act in good faith, as they incur transaction fees denominated in CFG tokens. Meanwhile, transaction aggregators on Polkadot are rewarded with a share of the fee for their role in processing and storing data. This synergy, coupled with the NPoS (Nominated Proof-of-Stake) mechanism and the CFG rewards, fosters a culture of fairness, encouraging users to select data collators that prioritize censorship resistance.
Notably, the majority of the security stems from the Polkadot relay chain. By leveraging Polkadot’s robust protective mechanisms, Centrifuge is able to achieve a high level of security while keeping costs remarkably low.
Where to Acquire Centrifuge (CFG): A Comprehensive Guide
As of June 2021, CFG tokens have been successfully listed on the esteemed BitZ platform, thereby facilitating seamless trading opportunities for investors.
For those interested in delving deeper into the world of cryptocurrency investment, we invite you to explore our comprehensive guide, where you’ll discover the intricacies of buying crypto.
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