Centrifuge and MakerDAO Continues Collaboration Connecting DeFi Lending With Real-World Assets

Centrifuge and MakerDAO Continues Collaboration Connecting DeFi Lending With Real-World Assets
  • Centrifuge and MakerDAO are continuing with their collaboration.
  • Allow borrowing more than 40M DAI along with physical world collateral.
  • Aos agreed to repay users of two types of tokens related to the Vault.

Centrifuge, decentralized asset finance, and the MakerDAO community are continues collaboration, building a bridge between DeFi lending with real-world assets. By this process increasing the initial debt ceiling for four more Tinlake pools to allow borrowing more than 40M DAI along with physical world collateral.

More so, Asset Originators (AOs), real businesses that onboarded onto the Tinlake platform can finance their business in Centrifuge by sourcing crypto liquidity and tapping into MakerDAO liquidity.

Asset Originators (AOs) can able to furnish financing by creating a non-fungible token (NFT) representing the real-world property. The type of property may be outstanding invoices, real estate, revenue sharing agreements, real-world loans, or other kinds of finance arrangements.

Furthermore, Aos agreed to repay users of two types of tokens related to the Vault, the DROP, and TIN tokens. Comparatively DROP holders receive a lower rate of interest in exchange for this assurance. While holders of TIN can obtain higher returns at the cost of higher risk.

Henceforth, for the Maker’s Real-World Asset (RWA) initiative, the decentralized finance (DeFi) is integrating Centrifuge’s DROP tokens as a collateral type, enabling users to create DAI backed by the tokens. DAI is a decentralized cryptocurrency created and regulated by Maker DAO. This onboarding will hugely increase the total liquidity available to AOs on the Tinlake platform.

The Co-founder of Centrifuge, Lucas Vogelsang said,

“This move continues to connect DeFi to the trillions in assets in the real world. This cements how DeFi is moving to create a more open and fair financial system for everyone”.

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