A closer look at Centrifuge

The market for real-world assets has been rapidly developing, as covered in a prior research piece. Most of these protocols typically document the process of how tokenized assets can be used as collateral for loans and how investors can choose to pool funds (typically stablecoins) to lend to borrowers, earning a yield in the process. An often-overlooked key aspect of real-world assets tokenization is the initial process of getting these assets tokenized on-chain.

This process typically involves a custodian and can have significant trust assumptions. For this research piece, we will look into how Centrifuge onboards real-world assets onto its native Centrifuge chain first before bridging them to Ethereum, where they can be used as collateral on Tinlake.