Centrifuge

cfg

### Technical Analysis of Centrifuge (CFG) #### **Blockchain Infrastructure & Consensus Mechanism** Centrifuge originally operated on a **Polkadot parachain** optimized for RWA transactions, achieving high throughput and low fees. Its consensus mechanism used **proof-of-stake (PoS)** to secure the network. With the **Centrifuge V3 migration (CP141)**, the protocol now operates as a multi-chain EVM system, supporting deployments on Ethereum, Plume, and other EVM-compatible chains. This shift enables seamless integration with DeFi ecosystems while retaining cross-chain capabilities via Wormhole and Plume’s RWA Launchpad. The consensus mechanism aligns with the EVM chain’s requirements, leveraging native security (e.g., Ethereum’s PoS, Plume’s custom consensus). #### **Core Use Cases & Token Utility** - **Tokenized Financial Products**: Centrifuge standardizes RWA issuance, offering asset managers tools to tokenize structured credit, real estate, carbon credits, and more. - **CFG Token Utility**: - **Governance**: Voting on protocol upgrades (e.g., V3 migration) via Snapshot and on-chain mechanisms. - **Protocol Fees**: Proposals exist to introduce fees paid in CFG, accruing to the DAO treasury for grants, burns, or ecosystem growth. - **Staking**: Emerging discussions around staking CFG to.curate pools, earn yield, or participate in conviction voting with multipliers. - **Cross-Chain Composability**: ERC-7540 support enables asynchronous deposit/withdrawal flows, aligning RWA vaults with DeFi standards like ERC-4626. #### **Development Team & Partnerships** - **Team**: Led by **Bhaji Illuminati** (CEO), **Jeroen Offerijns** (CTO), and **Anil Sood** (Chief Strategy Officer). Founding members include contributors from k/factory and Centrifuge Network Foundation. - **Key Partnerships**: - **Plume**: Hosts Centrifuge V3’s native integrations and Anemoy’s RWA Launchpad. - **Anemoy**: Manages regulated funds (e.g., Janus Henderson Anemoy Treasury Fund). - **BlockTower/Aave/MakerDAO**: Institutional credit and DeFi collateral partnerships. #### **Tokenomics** | Metric | Value | |----------------------|-----------------------------------| | Total Supply | 560M CFG (pre-V3) → 675M CFG | | Circulating Supply | ~510M CFG | | Inflation Rate | 3% annual supply via block rewards| | DAO Treasury | ~23.7M CFG (10.7M at 0.45) | | Use Cases | Governance, fees, staking, burns | *Note: V3 migration adds 115M CFG to the Centrifuge Network Foundation for ecosystem development.* #### **Smart Contracts & Integrations** - **Tinlake (Legacy)**: Ethereum-based contracts for securitization pools, handling tranches, epochs, and NAV calculations. - **ERC-7540**: Standards for RWA vaults, enabling asynchronous investment/withdrawal requests across EVM chains. - **Multi-Chain Liquidity Pools**: Bridged assets (e.g., wCFG on Base/Plume) allow DeFi protocols to invest without leaving their native chain. - **Security**: 16+ security audits (Spearbit, burraSec) and immutable, timelocked smart contracts. #### **Tech Updates & Roadmap** - **Recent**: - **V3 Launch**: Full EVM compatibility, Plume integration, and composable RWA infrastructure. - **Migration Deadline**: CFG holders must migrate to EVM by November 30, 2025. - **Future**: - **Modular Asset Management**: Allow third-party developers to extend protocol functionality. - **Institutional Adoption**: Target 16T RWA market via partnerships and regulated products. - **Enhanced Privacy**: Explore zero-knowledge proofs and selective transparency features. ---

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