What is Centrifuge? All about Centrifuge project and CFG token

• Overview of the Centrifuge . project
• What is Project Centrifuge?
• Basic Features of Centrifuge
• The advantages of Centrifuge
• How to make money in Centrifuge
• Centrifuge . Development Team
• Development plan
• Advisors, investors and partners of the Centrifuge . project
• Overview of the CFG . token
• What is CFG token?
• Token Finance Mechanism
• Functions of the CFG . token
• Where can CFG tokens be bought and sold?
• The future of the Centrifuge project. Should I invest in CFG tokens?
• summary

Overview of the Centrifuge . project 

What is Project Centrifuge?

Centrifuge is a financial backing protocol for decentralized assets. This protocol connects decentralized finance (DeFi) to real-world assets. Meanwhile, Centrifuge will still strive to reduce capital costs for small and medium-sized businesses, as well as provide investors with a stable source of income. The main goal of the project is to generate a profit stream that is not tied to volatile crypto assets. In addition, developers are pursuing the mission of transferring real monetary value from fiat to crypto.

Companies are using Centrifuge to access the liquidity that DeFi provides. They can tokenize real assets and use these tokens as collateral to access finance through Tinlake – a decentralized application (Dapp) lending protocol. The Centrifuge blockchain is built on Polkadot for speed and low fees, while its Tinlake financial Dapp is built for liquidity access in Ethereum.

Basic Features of Centrifuge

Users pay transaction fees in CFG tokens, Polkadot aggregators receive a portion of the data processing and storage fees. These measures, as well as the NPoS (Nominated Proof-of-Stake) mechanism and CFG token rewards, incentivize users to act fairly and choose data reconciliation nodes that can provide maximum censorship resistance. multi for the network.

In general, most of the project's security comes from Polkadot's Relay Chain. The use of Polkadot's protection mechanisms provides Centrifuge with a high level of security at a low cost.

How Centrifuge Works

A company, such as Paper Records, uses Centrifuge P2P to sign and send invoices to Spotify. Spotify verifies the receipt of the document and the authenticity of the signature, then Spotify sends back an updated (signed) version to Paper Records. The Centrifuge Chain is used for the identity of the nodes, allowing Paper Records to look up Spotify and for Spotify to verify Paper Records. Paper Records can then anchor the hash-encrypted document with both signatures to the Centrifuge Chain. 

Using the above factors, Paper Records can now mint an NFT on Centrifuge Chain to represent an outstanding invoice. This NFT can be used as collateral to access finance on other blockchains like Ethereum. Third parties, from traditional lenders to DeFi lending pools, can verify the value of NFTs using anchored credentials and on-chain verified identities, and are given access to documentation off-chain with authenticity, so that the information anchored on the chain can be verified.

On-chain security

Centrifuge Chain is operated and secured by the mechanisms of the CFG token. Users pay fees for transactions using CFG tokens. Collators, the transaction aggregator nodes for Polkadot's Relay Chain, receive a fraction of the fees for executing transactions as well as storing chain data. These fees, along with the NPoS staking reward mechanism and CFG token, incentivize the creation of an honest and distributed, censorship-resistant pool of matching nodes for the best performance of the network. The remaining CFG fees are burned at the rate established by the on-chain governance mechanism.

However, most of the security of the chain will come from Polkadot's relay chain, through the successful auction of a parachain position by locking DOT (Polkadot's native token). To ensure that there are sufficient DOT tokens for parachain auctions, Centrifuge will use a sustainable CFG auction mechanism. Using Polkadot's Relay Chain provides a higher level of Centrifuge security, at a lower cost than setting up independent validators.

This allows CFG tokens to be used to incentivize users to provide liquidity to pools on Centrifuge Chain's Tinlake.

The advantages of Centrifuge

The Centrifuge Protocol tokenizes real-world assets by converting them into non-fungible tokens (NFTs). These NFTs will then be financially supported through Tinlake. Tinlake is the first Dapp built on Centrifuge Chain. It was created to access liquidity on Ethereum, while the CFG token has its own bridge to Ethereum.

Centrifuge features integration with other DeFi protocols. These features allow Centrifuge users to obtain liquidity without delay, as well as protect DeFi protocols from volatile events (unrecognized collaterals added illegally. ). As a result, risks are reduced, and loan sharks and intermediary banks are replaced by smart contracts.

As of June 2021, Centrifuge has the highest total key value (TVL) on the Polkadot ecosystem. Furthermore, the project claims to be one of the first to launch parachain on Polkadot. When the development team designed the Centrifuge Chain, improving operational speed and optimizing costs were their top priorities.

How to make money in Centrifuge

To make money with Centrifuge, users have the following forms:

• Become a validator to do work on the chain and get paid for each block participating in verification
• Provide liquidity on Tinlake to get rewarded with CFG tokens
• Staking into existing validator nodes to receive rewards according to the NPoS consensus mechanism.

Centrifuge . Development Team

Centrifuge was founded in 2017 by Lucas Vogelsang and Martin Quensel.

• Co-Founder – Lucas Vogelsang: He is the founder and currently holds the position of CEO of Centrifuge company. Besides, Vogelsang co-founded e-commerce startup DeinDeal in 2010. After successfully selling DeinDeal to Ringier, he started working on another startup – KaufDA. Later, Vogelsang moved to Silicon Valley to join Taulia as chief technical officer. In October 2017, he co-founded Centrifuge.

• Co-Founder – Martin Quensel: He is the co-founder of Centrifuge and currently holds the position of COO here. Before Centrifuge, he co-founded Taulia. Quensel started his career at SAP as a software developer and architect.

• CTO – Jeroen Offerijns: He is currently the chief technology officer of Centrifuge. Previously, he co-founded 42 Education and Transvise, both of which are related to education. In addition, he has many years of experience as a software engineer at Gigster.

Development plan

Deploying parachain on Polkadot

• Time: Not announced yet
• Type: Specification
• Launching Centrifuge as a parachain on Polkadot's Relay Chain, and setting up a test chain and running on Kusama

RWA team on Maker

• Time: Not announced yet
• Type: Specification
• Launch of the first real-world asset pool to support MakerDAO's DAI

Deploy on Aave

• Time: Not announced yet
• Type: Specification
• Launch the first blended real-world asset portfolio on Aave
• Launch of the first real-world portfolio of assets on Aave

Acala and Celo Stablecoin Integration

• Time: Not announced yet
• Type: Strategic Cooperation
• Accepting Acala and Celo stablecoins in Tinlake pools

Tokens are guaranteed

• Time: Not announced yet
• Type: Specification
• Secured tokens for decentralized risk assessment, achieving better credit rates

Advisors, investors and partners of the Centrifuge . project

Advisor of Centrifuge

The project's advisors include:

• Demian Brener: Founder and CEO of OpenZeppelin

• Steven Becker: Chairman and COO of MakerDAO

• Ashleigh Schap: Business Development Manager at MakerDAO

Investors and partners of Centrifuge

The Centrifuge project has raised a total of $11.8 million in funding over 6 rounds. Their latest funding was raised on May 27, 2021 from an undisclosed round. The project's partners and investors include: Semantic Ventures, Mosaic, BlueYard Capital, SAP.iO, Inflection Capital, FinTech Collective, Fabric Ventures, Crane Ventures Partners, Atlantic Capital, Megala Ventures, ZBS Capital, TRGC, Rockaway Capital, Moonwhale Ventures, IOSG Ventures, HashCIB, Galaxy Digital, Fenbushi Capital and High Naut Capital.

Overview of the CFG . token

What is CFG token?

The CFG token is the native token of Centrifuge and it powers the entire operation in the network. This token is also used to reward liquidity providers on Tinlake. As of June 2021, the total supply of CFG tokens is 425,000,000 CFG tokens, growing at a rate of 3% per year.

• Symbol: CFG 
• Token type: Utility token, ERC20 . standard 
• Token price in ICO: 1 CFG = 0.55 USD
• Fundraising Target: 6,375,000 tokens ($19,000,000)
• Total token supply: 425,000,000
• Tokens for sale: 9.5%
• Accept: ETH, BTC, USDT, USDC
• The minimum/maximum for each attendee is: 100 USD/500 USD

The CFG token sale event took place on May 26, 2021 on Coinlist. The event is held in 2 phases and the token supply is capped at 17 million tokens per round

Token Finance Mechanism

The project's own token is the CFG token, which powers the Centrifuge Chain. Owning CFG tokens gives users a stake on the Centrifuge network. Besides, this token can also be used to pay transaction fees, stake stakes in validators, and participate in on-chain governance. Through the block generation reward mechanism, the CFG token will also incentivize more validators, nominees, and other positions to participate in the future.

The total supply of 425,000,000 CFG tokens is distributed as follows: 

• 27% to core contributors
• 17.1% for total supporters
• 7.3% for rewards and sponsorships
• 9.5% for the public sale event
• 11.8% for foundation funding
• 7.1% for community grants
• 10.8% for development grants 
• 8.3% for the original ecosystem.

CFG token's 10-year unlocking schedule:

Most Centrifuge tokens have a long-term key. Core contributors and early backers unlock gradually every month over 1 year starting July 2021. Core members of the development team have 48 months of lock-in when they join, with a 12-month lockout with no benefits. Rewards that have been distributed will not be locked.

An additional 3% of CFG tokens are expected to be minted each year as PoS block rewards, DOT lock rewards, and liquidity rewards. However, the transaction fees burned will stabilize the total supply of CFG tokens over time.

Functions of the CFG . token

There are 4 main use cases for CFG: 

• Staking
• Pay transaction fee (gas fee)
• Join the administration
• Rewards liquidity providers on Tinlake

Where can CFG tokens be bought and sold?

Recently, Centrifuge held a batch 2 crowdloan event on Polkadot:

• Contribution start date: 06/01/2022
• Donation end date: 08/01/2022
• Auction ends: January 13, 2022
• The winning result will be announced on 11/03/2022, and the parachain will be valid from this date to 12/01/2024 (2 years)

The current crowdloan bonus (January 13, 2022) is 26.9 CFG tokens per 1 DOT token. In addition, participants have the possibility to receive an additional 5% bonus for each of the following conditions:

• Referral Bonus: Applicable to both referrers and referred event participants
• Multi-Contribution Reward: For contributors over 5,000 DOT . tokens
• Loyal User Rewards: For contributors to crowdloan events on Altair and Centrifuge.

The future of the Centrifuge project. Should I invest in CFG tokens?

Centrifuge has the highest TVL in the Polkadot ecosystem, and at the same time, it will be one of the first projects to run parachain on Polkadot. Besides, Centrifuge is a market leader in the field of real world assets (RWA), so the development potential of the project is huge. If it succeeds with its idea of ​​bringing the real world into the DeFi market, Centrifuge can be on par with the big boys in DeFi.

summary

The Centrifuge project provides individual investors as well as institutional investors with easier ways to put their real-life assets on the blockchain. This is a potential project and is likely to develop in the future.

Readers join the project's communication channels to catch the latest information about Centrifuge in a timely manner:

Website | Project Information | Twitter | Telegram | Medium | Discord | LinkedIn

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