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DeFi Workflows

Centrifuge brings real-world assets into the DeFi ecosystem. Because share tokens are standard ERC-20s, they can be integrated into various DeFi protocols to unlock liquidity and utility.

Lending & Borrowing​

Tokenized assets can serve as collateral in lending markets.

  • MakerDAO: Centrifuge assets have been used as collateral to mint DAI.
  • Aave / Compound: Potential integration allows share tokens to be supplied as collateral to borrow stablecoins.

Yield Aggregation​

DeFi protocols can aggregate yield from Centrifuge pools.

  • ERC-4626 Vaults: Protocols can deposit stablecoins into Centrifuge synchronous vaults to earn RWA yield programmatically.

Secondary Markets​

While primary issuance happens through the pool, secondary trading can occur on AMMs if permissions allow.

  • Liquidity Pools: Restricted share tokens can be traded on permissioned liquidity pools.
  • OTC: Large blocks can be traded over-the-counter between whitelisted institutions.

Automating Strategies​

Smart contacts can be written to:

  1. Rebalance portfolios between different RWA vaults.
  2. Automatically reinvest yield.
  3. Programmably redeem based on risk parameters.