
Centrifuge is a decentralized finance protocol designed to bridge real-world assets onto the blockchain to provide liquidity for businesses. By tokenizing assets like invoices, real estate, and trade finance, the platform allows issuers to access capital from a global pool of investors while providing lenders with yield backed by tangible collateral. The protocol operates on its own blockchain, Centrifuge Chain, built using the Substrate framework, which ensures interoperability with the broader Polkadot ecosystem. Users interact with the platform through the Centrifuge dApp, where they can finance assets or invest in liquidity pools to earn returns. The native CFG token serves as the primary utility asset, facilitating governance, transaction fee payments, and staking for network security. This infrastructure addresses the traditional funding gap for small and medium-sized enterprises by removing intermediaries and lowering the cost of capital. As the RWA sector matures, Centrifuge's focus on institutional-grade compliance and transparent asset verification positions it as a critical layer for on-chain credit markets.
Centrifuge is a decentralized protocol that enables the tokenization of real-world assets to facilitate on-chain lending. It functions by converting illiquid assets into non-fungible tokens (NFTs) that represent legal claims, which are then used as collateral to mint stablecoins or borrow capital. This process allows businesses to unlock liquidity from their balance sheets without relying on traditional banking institutions.