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Centrifuge, MakerDAO Reshape DeFi Lending with Real-World Assets: Here's How

Thu, 08/05/2021 - 16:05
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Vladislav Sopov
Two projects introduce new liquidity pools, unveil instruments for real-world asset tokenization
Centrifuge, MakerDAO Reshape DeFi Lending with Real-World Assets: Here's How
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Two DeFi heavyweights advance their collaboration to integrate real-world assets into decentralized finances. The new phase of the partnership includes liquidity pool expansion and token listing.

Centrifuge advances liquidity pools ecosystem to integrate RWA into DeFi

The Centrifuge team is focused on bringing real-world assets (RWAs) into the cohort of instruments for DeFi protocols. In its collaboration with MakerDAO, RWAs are utilized as collateral for decentralized lending/borrowing modules.

Cetrifuge's platform for RWAs, Tinlake, now has four more pools. That said, the "debt ceiling" for mutual instruments has reached 40 million DAI.

With Centrifuge, Asset Originators (AOs) can access the requisite liquidity by minting non-fugible tokens representing real-world objects as collateral.

The collateral that can be used with Centrifuge includes outstanding invoices, real estate, revenue sharing agreements and a variety of other financial arrangements.

MakerDAO onboards Centrifuge's DROP tokens

Within MakerDAO's RWA Initiatives, Centrifuge's token, DROP, can be utilized as collateral to earn DAI, a USD-pegged algorithmic stablecoin.

Lucas Vogelsang, co-founder of Centrifuge, stresses that the integration between the two teams will bring a number of cutting-edge concepts to DeFi enthusiasts:

This move continues to connect DeFi to the trillions in assets in the real world. This cements how DeFi is moving to create a more open and fair financial system for everyone. Having onboarded the first asset class seamlessly back in April, the collaboration between MakerDAO and Centrifuge will continue to onboarded even more diverse assets to the space.

Sébastien Derivaux, head of real world assets at Maker, emphasizes the importance of RWAs for the DeFi segment as an instrument to hedge against crypto market volatility:

For the Maker protocol, we see RWAs as the way to decrease reliance on highly correlated crypto assets and ultimately make the protocol more resilient.

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About the author

Blockchain Analyst & Writer with scientific background. 6+ years in IT-analytics, 3+ years in blockchain.

Worked in independent analysis as well as in start-ups (, Monoreto, Attic Lab etc.)