Centrifuge: Connecting Polkadot to a Limitless Market
What will a Centrifuge parachain mean for the Polkadot ecosystem?
It has never been more clear that interoperability will be key for the future of blockchain, and the Polkadot parachains will be a massive leap in advancing the technology and eventually reaching mass adoption.
Let’s paint a picture of what we’re bringing to both the Polkadot ecosystem as well as the entire Decentralized Finance space.
Centrifuge has been live since May 2020, reaching nearly $50M in TVL with $64M of assets financed all-time. Our mission is to unlock economic opportunity for all, and to allow everyone access to financing without using a third party or intermediary (looking at you, banks 👀).
So far Centrifuge has been tapping into liquidity on Ethereum, meaning users can already access the largest DeFi ecosystem. We have integrated with two of the biggest DeFi protocols in Ethereum: MakerDAO and Aave (launching soon!). But in order to scale and unlock liquidity, a parachain to the Polkadot ecosystem is key for this step in the future of DeFi.
Centrifuge will be connected to both the Ethereum and Polkadot ecosystems, positioning Centrifuge as the #1 real-world asset protocol in the crypto multiverse.
The home for Real World Defi on Polkadot
Polkadot addresses scalability issues found in the Ethereum network. It derives in part from allowing projects to deploy their own parachains: blockchains that run parallel and connect to the main Polkadot “Relay Chain”. As a result of Ethereum’s scaling troubles, gas fees are higher and transactions are slower (although still faster than many Tradfi transactions 😝). Centrifuge on Polkadot fixes this.
Once Centrifuge connects to the Polkadot network as a parachain, transaction fees will be cheaper and faster, enabling us to scale to limitless potential. Centrifuge will bridge liquidity between chains, and increased interoperability means we can grow DeFi liquidity across the entire blockchain multiverse.
Centrifuge will grow DeFi liquidity across the entire blockchain multiverse
But it is not just Centrifuge that will scale. DeFi will grow on Polkadot at a massive pace. And DeFi in its entirety will be able to reach TVLs in the hundreds of billions. More people will be able to borrow and have access to finance, more businesses will be able to get financing — at a competitive rate, and investors will be able to get access to more diverse assets — at a more stable yield compared to other crypto assets. You see where we are going with this…
Just imagine…
Let’s complete that picture with real use cases that can happen once Polkadot and Centrifuge are connected. First up: Moonbeam. The most exciting dapps on Ethereum are going to be building on Moonbeam, an Ethereum compatible smart contract parachain — making it easy for the Centrifuge parachain to tap into new sources of DeFi liquidity through the Polkadot Network! Imagine Sushi, Aave, and more. Moonbeam gives them the tools to get spun up into the Polkadot ecosystem quickly, making it easier than ever for everyone to access financing.
What’s next? Acala! DAI is the current stablecoin used to finance pools on Centrifuge. Once Centrifuge moves onto Polkadot, pools can be financed using Acala’s aUSD stablecoin. Through a Centrifuge parachain, pools could mint new aUSD that can be used in the PolkaDeFi world, from a house, invoice, inventory (or any other asset) you’ve collateralized and financed on Centrifuge.
Polkadot Real World DeFi coming to a parachain near you!
Realising Real World DeFi on the Polkadot Network will require Centrifuge to win a parachain in the next batch of auctions, and we are opening the crowdloan on the 15th December! By the end of the auctions in batch 2, Acala and Moonbeam will both have live parachains so the interoperability can commence in March — if YOU help us win a parachain slot so the Centrifuge parachain can go live!
If you want to contribute to expanding the Polkadot Network to a limitless potential, then sign up here to be the first to find out information about our upcoming crowdloan.
