WCFG

Wrapped Centrifuge (WCFG) represents Centrifuge's efforts to bridge real-world assets (RWAs) with DeFi on the Ethereum blockchain. It operates by enabling the creation of deRWA tokens, which are wrapped digital assets representing institutional-grade tokenized securities. These deRWA tokens are designed for seamless integration with DeFi protocols, allowing them to be freely transferred, traded on decentralized exchanges, and used as collateral in lending markets. The underlying Centrifuge (CFG) token, which wcfg is a wrapped version of, also supports the governance of this innovative ecosystem.

Wrapped Centrifuge addresses the challenge of integrating illiquid, institutional real world assets into the transparent and composable world of DeFi. By creating deRWA tokens, it solves the problem of siloed assets, unlocking new avenues for liquidity and broader distribution. This innovation brings traditional financial products onchain, creating interoperability that was previously impossible, and allows both institutional issuers and retail investors to access new markets and financial instruments, fostering greater efficiency and demand within the Web3 space.

Wrapped Centrifuge's deRWA tokens enable a diverse range of financial applications. Investors can deposit deRWA tokens as collateral into DeFi lending protocols for borrowing and leverage. These tokenized assets are tradable on decentralized exchanges, ensuring efficient liquidity. Furthermore, deRWA tokens facilitate stable yield products for retail platforms like wallets, and empower traders with new financial instruments for advanced strategies, such as yield-curve speculation, hedging, and structured products on blockchain rails.

Centrifuge implements a layered compliance framework: 1) Asset originators undergo rigorous KYC/AML checks through the Credit Group. 2) Pool sponsors establish legal recourse via jurisdiction-specific SPVs. 3) Onchain permissions enforce investor accreditation requirements. All RWAs maintain offchain legal enforceability while benefiting from onchain transparency.

Centrifuge reduces securitization costs by 40-60% by eliminating intermediaries like trustees and custodians. Automation features include: real time payment waterfalls, automated covenant checks, and instant settlement. The protocol also enables fractional ownership at lower minimums ($1k vs $250k traditional), democratizing access to institutional-grade assets.

Participation depends on pool parameters set by sponsors. Most institutional pools require accredited investor status, though some consumer finance pools accept non-accredited participants. All investments occur through Centrifuge's dApp, which enforces compliance checks via integrated identity protocols like Fractal ID.

The protocol employs a multi-sourced verification system: 1) Legal attestations from registered agents, 2) Encrypted document proofs via Centrifuge POD, 3) Cross-verified payment data from bank APIs. This tri-branch verification ensures asset performance reflects genuine offchain activity rather than synthetic inputs.

All asset pools remain fully operational during migration through Centrifuge's backward compatible bridge architecture. Liquidity pools automatically upgrade to ERC-7540 standards, with zero action required from LPs. Historical data migrates to IPFS with content-addressed storage for permanent accessibility.