Centrifuge Defi- how does it work?

Imagine you hold assets, like loans, invoices, or video streaming royalties - documents which basically entitle you to FIAT in the future. With Tinlake you can turn these assets into non-fungible tokens (NFTs), create an asset pool (securitization), and then issue Tin tokens and Drop tokens. The process is similar to issuing a “junior tranche” and a “senior tranche” of securities. The junior tranche (Tin tokens) is riskier but can pay a higher return. The senior tranch (Drop tokens) is more stable and less risky with a lower rate.

Asset holders hold some amount of Tin tokens — to maintain some form of investment. Drop tokens, meanwhile, are meant for further use in the DeFi world. Highlighting this, centrifuge have teamed with Consol Freight and Paperchain. In each case, the project’s leaders have also entered proposals to the MakerDAO community to accept their Drop tokens as collateral for stablecoin loans making it possible for businesses to to use as collateral for cash loans. The possibilities in business and content creation are constantly evolving but unfortunately, this is not open to everyone yet but hopefully with time things will become more accessible.

That’s my understanding of it- let me know what you think!


Right on the dot and yeah since minimum amount of assets to be collateralized for future loan financing is actually more on the higher side…$10,000.00 worth to be precise…it’s gonna take a while for true major adoption.If they can kinda like lower down the amount bit more from that $10,000.00…then I think Centrifuge/Tinlake will really get the attention from the public.Just my 2 cents.


Ya, you make perfect sense. Hopefully they can achieve that before other platforms attract the attention of the masses.

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Yes completely agree with this. I noted this directly to the team as well.

They mentioned that this was a requirement from borrowers, and they anticipate this will be lowered with time.


That’s nice to hear Sprashere.