Buy Centrifuge

Centrifuge (CFG) is a DeFi platform that creates an innovative bridge between traditional financial assets and blockchain technology. Centrifuge's goal is to enhance credit access for small and medium-sized enterprises while allowing investors to achieve stable returns, without exposure to cryptocurrency volatility. This is accomplished by tokenizing real-world assets (RWA) such as invoices, mortgages, and royalties and converting them into non-fungible tokens (NFTs). These can then be utilized over the blockchain, offering numerous new opportunities.

Through Tinlake, Centrifuge's primary decentralized application (dApp), businesses can leverage their tokenized assets as collateral to obtain financing. Tinlake serves as a marketplace where companies gain access to liquidity, provided by investors in exchange for an attractive return.

What makes Centrifuge unique is the combination of multiple blockchain networks. The platform is built on Parity Substrate, allowing seamless integration with the Polkadot ecosystem. At the same time, it uses Ethereum standards for NFT development and the Tinlake protocol. This hybrid approach provides users with the benefits of both networks: scalability and security via Polkadot, and the flexibility of Ethereum.

The Centrifuge token (CFG) plays a central role within the ecosystem. It is used for transaction fees, staking, and governance. CFG token holders can vote on important decisions, such as protocol changes and transaction fees, making it a community-driven project. The Proof-of-Stake consensus mechanism simultaneously ensures the network's security.

Centrifuge is appealing to businesses that wish to leverage blockchain technology without being exposed to the volatility of cryptocurrencies. For investors, the platform offers a choice between higher risks and returns via TIN tokens, or more stable returns with lower risks via DROP tokens.

Who are the founders of Centrifuge?

Centrifuge was established in 2017 by a German team led by Lucas Vogelsang, an experienced entrepreneur with a strong background in technology and fintech. Vogelsang was previously involved with DeinDeal and Taulia, a fintech company specializing in working capital solutions.

The team behind Centrifuge comprises experts in blockchain technology and financial innovation. Centrifuge is backed by prominent investors, including Galaxy Digital and IOSG Ventures, highlighting the project's credibility and ambitions.

Centrifuge offers various applications that appeal to both businesses and investors:

• Asset financing: Companies can tokenize their real-world assets and use them as collateral for loans.
• Access to DeFi liquidity: Investors can achieve stable returns by investing in Tinlake pools, without direct exposure to crypto volatility.
• Asset tokenization: Developers can convert traditional assets, such as invoices and mortgages, into NFTs, which are transparently managed on the blockchain.
• Staking of CFG tokens: Users can stake CFG to secure the network and earn rewards.
• Governance: CFG token holders have a say in protocol changes and updates, contributing to the democratic development of the platform.

Tokenizing real-world assets is a process that starts with converting real-world assets into NFTs. On the blockchain, NFTs are tokens that are unique and distinguishable from each other. Additionally, smart contracts can be embedded in NFTs, enabling the tokenization of real-world assets.

This tokenization includes assets such as invoices, mortgages, and royalties, with ownership and authenticity recorded on the blockchain. This increases transparency and enables these assets to be used as collateral for loans. The assets can also be easily transferred between users, improving their accessibility.

Tinlake: The Financial Marketplace

Tinlake is the decentralized application where businesses can obtain financing. Companies add their tokenized assets to Tinlake pools as collateral. Investors can provide capital by depositing stablecoins such as DAI into these pools and receive:

• TIN tokens: For those who accept higher risks and returns. These investors bear the first loss in case of default.
• DROP tokens: For those seeking more stable returns with lower risks, protected by the TIN holders.

This structure makes Tinlake flexible and attractive for investors with diverse risk profiles and experiences.

Connection with Polkadot and Ethereum

Centrifuge builds bridges between different blockchain networks. The platform uses its own blockchain for independence while simultaneously utilizing Ethereum standards for Tinlake and NFT creation. By integrating with Polkadot, Centrifuge benefits from this ecosystem's scalability, interoperability, and security.

The Centrifuge Token (CFG) forms the foundation of the Centrifuge ecosystem and fulfills multiple essential functions. Users utilize CFG coins for paying transaction fees, such as minting NFTs and performing activities within the Tinlake protocol. Additionally, CFG plays a significant role in governance, where holders can vote on platform updates and protocol changes, such as the percentage of transaction fees that are burned.

Another core function of CFG is staking. Users can stake their tokens to secure the network and receive rewards for doing so. This encourages active participation on the platform and enhances the system's stability.

With a maximum supply of 425 million CFG tokens, a significant portion of which was issued during the Coinlist token sale in 2021, Centrifuge combines a limited supply with wide functionality. This scarcity can contribute to the token's value and investment potential.

Centrifuge stands out from other blockchain and crypto projects thanks to several unique features:

• Real-world assets via NFTs: Centrifuge enables the tokenization of physical assets like invoices and mortgages, allowing them to be directly used as collateral. This lowers the barrier for businesses to obtain financing.
• Focus on SMEs: Unlike many other platforms, Centrifuge specifically targets small and medium-sized enterprises, which often have limited access to traditional financing.
• Dual blockchain compatibility: Centrifuge combines the scalability and security of Polkadot with the flexibility and wide adoption of Ethereum, creating a powerful interoperable ecosystem.
• Risk differentiation with TIN and DROP tokens: Investors can choose between higher risk with variable returns (TIN tokens) or more stable returns with lower risks (DROP tokens).
• Elimination of intermediaries: By utilizing smart contracts and blockchain technology, Centrifuge removes traditional financial intermediaries, leading to lower costs and greater transparency for users.

Purchase Centrifuge (CFG) via Bitvavo. Whether you’re a beginner or an experienced trader, buying CFG tokens is just a few steps away:

1. Create a Bitvavo account or log in to your existing profile.
2. Add euros to your account by clicking "Deposit" and selecting your preferred payment method.
3. Navigate to the Centrifuge (CFG) buy page.
4. Enter the amount in euros you wish to invest or select the number of CFG tokens you wish to buy.
5. Click "Buy" to complete your transaction.

You can safely store your CFG tokens in your Bitvavo account, where the majority of funds are kept in offline cold wallets. This storage method provides extra protection against digital attacks and other security risks. For even more safety, you can enable two-factor authentication (2FA). This adds an additional security layer to your account, requiring you to enter a unique code along with your password when logging in.

Prefer to manage tokens yourself? You can easily transfer them to a software or hardware wallet that supports CFG. Make sure to verify the wallet address before executing a transaction. Once everything is confirmed, you can safely and quickly transfer your tokens to an external wallet, giving you full control over your crypto assets. With an external wallet, you not only maintain maximum control but also enhance the autonomy and security of your investments.