Centrifuge and Tinlake are very interesting platforms and I’ve eagerly followed the developments in the last couple of months.
During that time I found that some things regarding Tinlake’s unique value proposition are still unclear to me.
Everything that follows comes from a good place and I hope that jointly answering these questions can be part of the success of these brilliant initiatives.
Challenge #1: How is the risk assessment quality of investment opportunities in Tinlake ensured?
Basically Tinlake allows for a digitalized variant of trading CDOs [=> Please correct me if you see this differently].
This is something that exists already in the traditional finance world and was, among other things, a trigger for the 2008 financial crisis due to opaque and poorly understood risks.
To attract a large number of investors, Tinlake must offer very solid, high quality risk assessments better than existing companies do - how can that be achieved?
Challenge #2: What unique benefits do investors and asset originators get on Tinlake compared against traditional collateralized debt investment solutions?
It is clear to me that a crypto-based gateway to real world assets will generate value at some point due to the automatable connection of smart contracts & DeFi applications - i.e. Centrifuge is a necessary addition to the crypto space imo.
However, I would like to have some more specific examples what these benefits could be for the Tinlake use case.
Here’s what I can imagine:
- automated risk management through pooling into different risk classes + automated insurance acquisition
- better transparency (& auditability) of asset originator track record
- … what else?
Hoping for a lively discussion!