Centrifuge has been on my radar for several months. With the launch of Tinlake v3 this October the time to start investing finally has arrived. One of the biggest innovations of v3 is the introduction of revolving pools. The main idea behind revolving pools is as long as money flows into the pool from investors (the ones who provide liquidity through investments) and asset originators (those who provide and deposit assets) the pools stay open. This concept brings advantages for both asset originators and investors at the same time: investors who do not intend to withdraw their investment any time soon do not need to bother about their money and simply keep it as long as needed in the pool. The basic investment can be increased continuously and the risk is diversified through two tokens (DROP=gets paid back first and TIN=gets paid back last).
An asset originator on the other hand can provide assets continuously and adapt the size of the pool based on how the business is running. In addition a very attractive add-on for investors and asset originators is the Radial Rewards program where Centrifuge Radial Tokens (RAD) are earned for every DAI invested in the pool.
At the same time with Tinlake v3 the way of investor’s on-boarding has changed with Securitize ID. In the Securitize-account the whole process of KYC (“Know your customer”) to verify the identity is done step by step. The process is very well structured and self-explanatory and deals with all relevant information such as personal data, tax number and the Ethereum wallet address. In case of questions the Securitize-support responds real-time.
When the KYC is finished the favored investment pool needs to be chosen. I invested in the ConsolFreight series 4, a pool by a company which provides Freight Forwarding services. The last step which has to do with Securitize is to sign the subscription agreement. For me this was by far the most time-consuming part because I had to read the agreement very carefully and make sure that every information was thorough.
After the subscription agreement was signed and accepted by ConsolFreight I could finally invest into their pool.
The investment can only be done, when the KYC is finished and the subscription agreement is signed and accepted. It is done directly in the Tinlake app in a separate tab. As a basic requirement a web3-wallet (such as Metamask which I used) is needed. The whole technical requirements and a very helpful step-by-step guide is given in the Tinlake investor guide.
The actual investing in Tinlake is pretty simple. After the amount in DAI is entered, the total is locked (this takes up to 24h, during this period the order can get cancelled at any time) and when the order is successfully executed the DAI are converted into DROP-tokens (at the time of writing my pool ConsolFreight 4 offered DROP-tokens only). At the end interest finally started to accrue and I can track the progress of my investment in Tinlake any time I want.
This was the first time I had to go through KYC to verify my identity. Although this was an unfamiliar situation, with the help of Securitize and Centrifuge it wasn’t a big deal. For the actual investing in Tinlake a fundamental understanding of Crypto and how to deal with a web 3-wallet is beneficial. Nonetheless with the investor guide and the support of the team first-time investing is pretty simple.
My personal experience (so far) and persuasion is that Centrifuge will be successful in the long run because the team’s development and on-boarding of new investors is moving forwards continuously. The possibility to obtain Centrifuge Radial Tokens through the Radial Rewards Program was a huge benefit for me as an investor and a step forward to participate in the long-term success of Centrifuge.
So I heard you need a minimum of 10,000 USD to invest in the Tinlake pools. Is that the case? Is it too late to earn Rads that way? I am living in the Czech Republic and not sure how it works. Thanks for any info.
Hi, to invest into a pool you need at least 10K DAI and it is not too late (my opinion). The important question is: are you from the US? If so you need to be an accredited investor
I am but I’m a duel citizen of Ireland and I think my girlfriend could do the investing and she is from Czech Republic. Not sure what would be best.
It should be alright I guess. Europeans need to go only through KYC. If you are interested you should get in contact with Centrifuge
Thanks very much for sharing your experience investing in one of the Tinlake pools and for outlining the specific steps and features. Much appreciated from someone who hasn’t been able to invest to this stage and is encouraged by your experience.
Hi @doobs every asset originator on Tinlake launches their own pool and sets their own terms. As of right now, all pools on Tinlake have a 10k DAI minimum. Their offerings are US based Reg D/Reg S 506c private placements, which means that if you are a US citizen (Reg D), then you must be accredited whereas non-US investors (Reg S) do not have to go through accreditation. All investors, regardless of where you live, must go through KYC/AML. We use Securitize for both KYC/AML as well as accreditation (for Reg D). Here are the primary steps to take before investing:
- do your research - read Discourse, visit the websites of the asset originators, participate in our community calls and AMAs with asset originators, visit the Asset Originator pages on Tinlake
- if possible, consult with your own tax advisor, legal council, or wealth advisor about how this investment will impact your financial portfolio.
- select a pool on Tinlake and follow it to Securitize to go through the KYC/AML/Accreditation process
- do more research - read the subscription documents that are made available through Securitize after indicating your interest to invest in a pool; ask more questions on our forums
- when you are ready, sign the subscription docs (the asset originator will countersign)
- invest into the asset originator pool on Tinlake
You can start you process here: https://tinlake.centrifuge.io/
If you have questions please ask them here or on our Telegram channel.
Happy holidays and good luck with your investments!
You are welcome, Elias Feel free to ask if you need some help
thanks. I am going to try to do my research and detail the process in a blog post. Looking forward to the process.
hi @Tjure07 ,
Are subscription documents in any way legally binding or can I download subscription docs for all the pools? (I am verified on securitize)
as far as I know they are. You have to sign a subscription agreement for each pool you want to invest in. For example: if I want to invest in another pool I have to sign a new subscription agreement too.
Pozdrav iz Berlina!
Koje ugodno izenađenje
But I can read them without signing anything?
Pozdrav iz Zagreba
I need some clarification on this matter. I have already connected my wallet and locked my DAI in for investment as the per attachment. But has the epoch already been executed? It has been 24 hours and I’m unsure if I have enrolled in the investment. Please help out I appreciate it!
Hi @SoraAoiX ,
From the pictures above I figured which pool is in question and one of the thing I noticed is that their reserve is really close to the maximum (972,985DAI / 1,000,000DAI) and on the left side of epoch details you can see that total pending investment is 137,577DAI and on the right side you can see total epoch investment capacity which is 27,015DAI which tells me that this pool will be oversubscribed when the epoch ends. Now we have two ways of thinking, either they will accept only 27,015DAI as this is the maximum epoch capacity or they will accept all of the pending investments(137,557DAI). If it’s the latter then your investment will be executed at the end of the epoch. But if they are only accepting 27,015DAI then the main question is whose investments from 137,577DAI will be used to finance the available 27,015DAI but I believe that this will be sorted on a first come first served basis.
Hope this helps,
I appreciate that you took your time to look into this. Well in this case does it mean that my DAI will be sitting idle there for as long as they take to accept / decline all the pending investments? ( 137,557 DAI )? Thank you in advance! Cheers
That’s the general idea as long as your investment is not accepted your DAI will be sitting idle until they accept it into the pool. I think that your investment is accounted in the 137,557DAI pending investment but as I mentioned earlier investment capacity for this epoch is 27,015DAI and I think that those investors who were the first to lock DAI (to the maximum amount of 27,015DAI) will get accepted into the pool and the rest (137,557-27,015=110,542DAI) of the DAI will have to wait for AO to originate more assets.