How do you ensure that a RWA has been converted to an NFT once, and not duplicated?

As a small business owner, the ethos of Centrifuge really resonates with me. But I can think of several ways an asset owner like me could become a bad actor. Could Centrifuge share how they plan to ensure these things don’t happen?

(1) How do you ensure that a single RWA has been converted to an NFT once, and only once? I could easily turn my single RWA into multiple NFTs across Centrifuge’s competitors.
(2) If I don’t pay back the loan for any reason, how do you seize my assets? Theoretically there’s no way for Centrifuge can seize my asset, because the asset is under my name in off-chain public records. Is there a real-world contract that’s enforcible across the globe? If not, how do you enforce it?
(3) Do you have human-in-the-loop everytime an RWA is converted to an NFT? What does this person/system do?


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Why hasn’t this post gotten a response from anyone?

The general flow of financing NFTs in Tinalke looks as follows:

  1. The Asset Originator sets up a legal entity - a special purpose vehicle - for each pool. The SPV keeps all financings remote and separate from the Asset Originator.

  2. The Borrower wishes to finance an asset such as an invoice or a property.

  3. The Asset Originator originates this RWA. The AO has a business relationship with the borrower and performs the underwriting. It then verifies the RWA and mints an NFT for the asset to be used as collateral on-chain.

  4. The Borrower enters into a financing agreement with the SPV and asks the Asset Originator to lock its NFT in the Tinlake pool tied to the SPV. As the NFT is locked in Tinlake, DAI is drawn from the Tinlake pool reserve, and either directly transferred to the Borrower’s wallet or the SPV’s wallet, which exchanges DAI for USD and does a bank transfer to the Borrower’s bank account. The SPV is set up in order to keep all financings remote and separate from the Asset Originator. Bankruptcy of the Asset Originator does not impact the SPV and therefore does not impact the financing. All financing transactions and payments are done directly between Borrowers, the SPV, and Investors and happen on-chain in Tinlake. The SPV is a pass-through entity without the aim to generate profits. It has no employees. Its sole purpose is to finance specific RWAs as underlying assets of one specific Tinlake pool. The SPV administers this pool and all its services are performed by third parties, upon instruction by the SPV, for a service fee. The SPV’s operations are defined in the Operating Agreement.

  5. The Borrower pays back the financing amount plus the financing fee at the maturity date of the NFT. This happens either directly on-chain in DAI, or the Borrower does a USD bank transfer to the SPV. The SPV exchanges USD for DAI and pays it to the Tinlake pool. The full repayment of the NFT unlocks the NFT, which is then returned to the Asset Originator where it can be burned.

NFTs in Tinlake are secured by a Special Purpose Vehicle (SPV) which is an independent legal entity. It has its own assets and liabilities, as well as its own legal status. Usually, SPVs are created for a specific objective, often to isolate financial risk. As an SPV is a separate legal entity, it carries even if its parent company goes bankrupt

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