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Real World Asset (RWA) Market Goes Live on Centrifuge and Aave

Wed, 12/29/2021 - 13:06
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Vladislav Sopov
RWA Market is designed to offset the gap between real-world assets and blockchains as technical basis for trading
Real World Asset (RWA) Market Goes Live on Centrifuge and Aave
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A new product will allow Centrifuge and Aave Finance users to trade real-world assets using cryptocurrency tokens. Its instruments are going to change the narrative in leveraging DeFi primitives in "classic" businesses.

Real World Asset market goes live, USDC depositors are welcome

According to the official announcement shared by novel project Real World Asset (RWA) Market, its ecosystem went live on Centrifuge platform and Aave Finance DeFi protocol.

With this release, markets can be created on Aave Finance (AAVE) to let crypto holders borrow multiple assets using their stablecoins  - starting with USD Coin (USDC) as collateral.

Also, the new protocol allows businesses to tokenize real estate, cargo invoices, wire transfers as well as to launch Branded Inventory Financing and Revenue Based Financing programs.

In terms of "yield farming," this release allows crypto enthuiasts to receive LP rewards against stable, uncorrelated real-world collaterals.

Stani Kulechov, founder and CEO of Aave, is excited about the opportunities this partnership unlocks for the entire Web3.0 segment and crypto adoption:

The RWA Market changes the landscape of what is possible not only for protocols such as Aave, but across DeFi as a whole. Creating various entry points into DeFi, making it more accessible, is a driving force of the Aave Companies' vision, and we are excited to see Centrifuge push this further through the collateralization of real-world assets.

TradFi has never been so close to DeFi

Lucas Vogelsang, CEO of Centrifuge, is sure that besides being revolutionary and capital-efficient, the RWA protocol can easily scale step by step:

The RWA Market bridges the regulated world of TradFi to the trustless world of DeFi. Creating an infrastructure to securely onboard RWA that is able to scale has been exciting and we’re proud to see this work pay off.

As covered by U.Today previously, starting from May 2021, Centrifuge allowed users to collateralize real-world assets in order to obtain Maker (MKR) tokens.

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

Simply put, the new release allows traders to build uncorrelated, flexible and stable portfolios to protect their gains from the volatility of the crypto and stock markets.

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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.)