Centrifuge(CFG) is a decentralized real-world asset financing protocol that aims to improve financing efficiency and reduce costs. It allows enterprises to more easily obtain DeFi liquidity by bringing real-world assets on-chain for tokenization. As an infrastructure in the RWA field, Centrifuge has become the leading TVL project in private credit. However, there are still problems such as low token liquidity and being in the early stages of the project.
TVL ranks first in DeFi private credit field
Centrifuge has cooperated with MakerDAO to create the world’s first RWA asset pool and helped Aave launch an RWA market. It has now become the leading TVL project in the private credit field, with a TVL of over $250 million. However, CFG itself has problems such as low on-chain activity.
Aims to capture more liquidity through partnerships
Centrifuge is building Centrifuge Chain to capture more liquidity from Layer 2 chains. It has also partnered with major players in the crypto industry to promote the development of the RWA industry.
CFG token has governance and staking functions
The CFG token has governance and staking functions. CFG holders can participate in governance and use CFG as collateral to obtain loans on the Centrifuge platform. The token economics design is not attractive enough for investors.
Centrifuge aims to bring real-world assets on-chain and capture DeFi liquidity. As an infrastructure in the RWA ecosystem, it has achieved certain success but still faces issues like low token liquidity. Its goal of expanding through partnerships may improve efficiency.