top of page

How does Centrifuge open up "off-chain assets and on-chain circulation" so that DeFi can connect to

Tinlake is Centrifuge's first product, built on the Centrifuge protocol. It can be used to borrow on the chain through Collateralized Assets, which is completely managed by smart contracts.

In the Centrifuge architecture, NFTs anchor an unchangeable asset record and also represent an asset in the off-chain world. Through Tinlake, asset owners can mortgage their NFTs and convert them into ERC 20 tokens, and then use ERC 20 tokens to lend stablecoins, while investors engage in DeFi borrowing in accordance with contract rules.

With Tinlake as the center, Centrifuge develops the asset chaining process

To generate NFTs that can accurately represent a real-world asset, it is necessary to have a sufficient verification and counter-inspection mechanism for the asset to deal with the supervision or audit that the real world needs to face. Centrifuge tokenizes real assets through two steps to form the corresponding NFT:

1.Documents (Asset Originator) to Asset: Traditional assets come in many forms, such as invoices representing accounts receivable, or unpaid records of streaming media royalties. These physical assets are usually in the form of documents, and in the process design of the assets on the chain, a standard format must be established. Taking invoice assets as an example, it may contain the following information fields: invoice number, buyer information, supplier information, invoice amount and payment date, etc. Centrifuge uses a pre-defined schema to format traditional assets to ensure the uniqueness of assets.

2.Tokenization of Asset: Tokenization of real assets. It is mainly implemented by three modules, including Anchors, Identities and NFTs. The implementation of its smart contract is explained as follows: