Centrifuge
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Centrifuge

Dylan Dedi

Sep 2, 2020

4 min read

Start Earning CFG: Liquidity Mining for Tinlake

We are introducing Centrifuge Liquidity Rewards for Asset Originators and Investors in Tinlake Pools.

RAD has been renamed to CFG. This article was updated accordingly.

Introducing Centrifuge Liquidity Rewards for Asset Originators and Investors in Tinlake Pools

Centrifuge Tinlake is our protocol to bring real-world assets to DeFi. We want to reward asset originators and investors for becoming first adopters and bootstrapping the ecosystem with the token that will power the whole network: the Centrifuge (CFG) token.

This is the second iteration of this program. The pilot deemed successful in bringing Tinlake more investors. This time, we are opening to the public and incentivizing asset originators as well.

Learn more about the first CFG program in our retro summary on Discourse

The Centrifuge Liquidity Rewards is a token distribution mechanism to real users. We want to distribute the token to users who will power and use the platform: that’s why we are incentivizing asset originators, investors, and validators to hold our token and participate in the Centrifuge Network.

Who Are We Looking For?

Investors

Tinlake pools are now available for DeFi investors. Our Asset Originators usually ask for a minimum total commitment of $5,000. US investors must be accredited and KYC/AML will be conducted on all participants.

Asset Originators

We are seeking asset originators (AO) to deploy pools on Tinlake. The AO should be able to originate a diversified collateral pool totaling in a minimum of $250,000 to start spinning on Tinlake. We want to incentivize a broad range of companies to enter the Tinlake universe, including companies that extend finance for assets such as invoices, royalties, bill of ladings, purchase orders, and mortgages.

Deploy a Pool here |||| Invest in Pools here

CFG Rewards

We are announcing a Centrifuge Token Rewards Program to reward early Investors and Asset Originators with CFG for locking DAI and assets into the Tinlake protocol. The earliest participants will receive the highest rewards, using the Tinlake Dapp to claim rewards directly on-chain. DAI and assets must be locked for a minimum of 30 days in order to participate in the CFG Reward Program. The current reward for Investors is 0.0042 CFG/DAI locked/day and for Asset Originators is 0.0017 CFG/DAI originated/day. This means that 1 DAI invested for the minimum 30 day period will receive around 0.125 CFG. Rewards will likely follow a declining curve that is subject to governance [edit: the first governance proposal can be found here, valid until the first 2M CFG have been rewarded]. Furthermore, as token holders you can put your CFG to work by staking towards Validators to help secure Centrifuge Chain, as well as participating in on-chain governance for future chain upgrades.

Centrifuge Protocol Insights

Centrifuge Chain allows businesses to convert real-world assets (RWA) into Non-Fungible Tokens (NFTs). This enables asset originators to put up these NFTs as collateral in Tinlake pools on Ethereum. Centrifuge Chain is an open source PoS blockchain built for finance and powered by the Centrifuge (CFG) token. Tinlake taps into the Centrifuge ecosystem, including the Centrifuge Chain and a P2P messaging protocol, to bring DeFi to a consumer-ready interface.

Centrifuge operates on three key layers:

  1. A P2P messaging protocol, used to exchange information between investors, asset originators, data providers and others in a private, decentralized and trustless way;
  2. A purpose-built PoS chain, based on parity-substrate with its own native utility & staking token CFG;
  3. A set of smart contracts, we call Tinlake made to bundle these non fungible assets and make them DeFi native.

Tinlake creates pools of assets, allowing investors to diversify risk across many different asset originators. Each Tinlake Pool is grouped by asset class and risk profile for consistency across the portfolio. Tinlake mints two different tokens, the DROP token represents the senior tranche, it has a fixed interest rate and is protected from defaults by TIN token (the junior tranche). Asset Originators will ‘put skin in the game’ by allocating to TIN making the DROP token a safer and more stable asset for investors to invest in. Read more on how exactly our two tokens work in our recent post.

Visit https://tinlake.centrifuge.io/ to see the pools spinning