2023-February Centrifuge Monthly Summary
Welcome to our monthly summary of developments, events and governance updates from the Centrifuge Ecosystem for February!
After the TVL in Tinlake surpassed $100M in January, only a few weeks later, another milestone with $150M in assets locked has been reached! It shows the high trust from both issuers and investors in the protocol! This and more exciting news can be found in this newsletter!
- The TVL locked in Tinlake exceeded $150M!!
- The proposal to turn on protocol fees has passed
- Governance is gaining speed at Centrifuge
- Introduction of the Credit Group in the Centrifuge governance call
- Centrifuge wants to back Aave’s GHO stablecoin with RWAs
- Stablecoin Management and Collateral: Challenges and Opportunities 🕮
- Total Value Locked: $149.7M (MakerDAO: $79M; RWA Market: $4.1M)
- Total Active Loans: $147M
- Total Assets Originated: $295M
- Total Assets repaid: $3.9M
The Ecosystem is focused on educating the world about Centrifuge, creating visibility and opportunity for RWAs, and sharing the narrative of how the world’s credit will be financed through DeFi.
February highlights include:
- Real World Assets are here to stay: Forbes covered the Top 5 Tech Trends to transform real estate and Centrifuge is mentioned as one of the leading RWA-protocols having an impact on RWAs
- Over the past years, the crypto market has seen the rise of new protocols tapping on credit markets in traditional finance and Coingecko dives into the biggest players in the market so far and explicitly mentions Centrifuge.
- A mega thread is on the horizon and it is called Real World Assets! This is a great blog with all the important Q&As written by ChainLinkGod
- Some key takeaways from last month’s AMA with Centrifuge and Credix summarized in the Credix January newsletter
- Thanks to the Kusamarian with his thread about Centrifuge and his coverage in the latest edition in the series Alpha shots
The Community is represented primarily by individuals and organizations that are actively participating in governance, contributing to processes and discourse, and are economically tied to the success of Centrifuge.
- Here is an interesting piece of work written by our DeFi Politician Asad and he deep dives into Stablecoin Management and Collateral where he covers the challenges and opportunities of stablecoins for DeFi and Centrifuge in particular. Some of the highlights: (1) Stablecoins are the foundation in the crypto industry and they have a critical function as well use case, (2) RWAs can help to manage the asset-liability exposure of a stablecoin and provide uncorrelated revenue streams, (3) onboarding RWAs is a complex challenge of any portfolio development and management and (4) Bringing assets on-chain must be a critical aspect of any RWA-strategy
- Two governance updates from Aave and Maker: the MIP105: The Real World Asset Collateral Framework defines the principles and processes related to the implementation of RWA-collateral allocation including direct exposure to stablecoins.
As well the governance discussion kicked off by Asad on a GHO Real World Asset Facilitator where he talks about the proposal of Centrifuge becoming the first RWA facilitator for the GHO stablecoin. For more insights please see the thread below
@FinTech_Khan: I wanted to share some thoughts on how to think about onboarding RWA as a stable
And more news from Polkadot:
@Polkadot: Interested to learn about Polkadot OpenGov, the network’s next-gen governance system?
Save the date:
Centrifuge Active Contributors Call on March 8! This is a new call for active contributors in the Centrifuge DAO.
Centrifuge governance call #15 on March 16
I want to start the governance section with the proposal to turn on Protocol fees which passed recently after the governance vote! Thanks to everyone who participated in the discussion and who voted.
By the time of writing this summary there are three important proposals open to be voted on to be specific: the founding documents of the Centrifuge DAO, the roadmap for the Process & Protocol Engineering Group and the Pool Onboarding Process V2.
The links to all three polls on OpenSquare can be found in the governance update for February.
Please actively participate in the governance process, leave your comments and remarks in the RFCs and vote on polls:exclamation:
The Centrifuge governance call #14 gave the members of the newly introduced Credit group the opportunity to introduce themselves and this caused big interest with intensive discussion amongst the audience. This is exactly how active governance should be! Other important topics, as can be seen in the recording of the call (three batched proposals plus a quick guide on how to vote in polls).
The Centrifuge governance showed tremendous growth over the past 6 months and the community can - and should - actively influence the direction of the protocol. Here is a small recap how to get involved and why governance is so important
For all proposals and snapshot votes please take a look into this overview by our governance facilitators.
The Protocol is represented primarily by organizations that are actively using Centrifuge’s technology to facilitate the underwriting, structuring, and financing of RWAs.
Product & Engineering
- With this transaction, the first complete successful tests on the Moonbase Alpha testnet were finished, which officially transferred the first bunch of tokens from the Centrifuge chain to the Moonbase EVM
- Here is a good overview on the different fee structures of existing RWA-protocols provided by Wallfacer Labs as well as a discussion of an improved fee model for TrueFi based on the Centrifuge protocol fees. It’s good to see, there is constructive competition in the market and protocols can learn from each other!
- Due to the recent high demand for tokens associated with RWAs, James introduced a cool dashboard on Dune analytics to track the most important protocols - amongst others wCFG
Stay tuned for the next monthly update with more news, updates and developments from the ecosystem!
What are your thoughts and your feedback? Please leave them in the comments below or you can get in touch with the team, our ambassadors or moderators in Discord!