Convert CFG to CNY

Centrifuge (CFG) is a pioneering decentralized finance (DeFi) protocol focused on bringing real-world assets (RWAs) on-chain, enabling businesses to access liquidity without traditional intermediaries.

Key takeaways

• Centrifuge is a leading DeFi protocol that tokenizes real-world assets (RWAs) like invoices, royalties, and real estate to unlock financing.
• The protocol operates on its own Substrate-based blockchain, secured by a Nominated Proof-of-Stake (NPoS) consensus mechanism.
• The CFG token is central to the ecosystem, used for governance, staking to secure the network, and paying transaction fees.
• By connecting real-world asset originators with DeFi liquidity pools, Centrifuge aims to create a more efficient and accessible global credit market.
• You can trade CFG tokens via the spot pair CFG/USDT or the perpetual contract CFGUSDT on the BTCC exchange.

What is Centrifuge? Key Specifications & Tokenomics

Centrifuge is a decentralized protocol designed to bridge real-world finance with the DeFi ecosystem by tokenizing assets and facilitating borrowing against them.

Who created Centrifuge (CFG)?

Centrifuge was founded by Lucas Vogelsang and Martin Quensel. The project emerged from a vision to solve inefficiencies in traditional asset financing, particularly for small and medium-sized enterprises (SMEs). The team, which includes veterans from both fintech and blockchain sectors, developed the protocol to leverage blockchain technology for transparent and accessible credit. Development and governance are now primarily steered by Centrifuge DAO, a decentralized autonomous organization where CFG token holders propose and vote on key protocol upgrades, treasury management, and ecosystem growth initiatives.

How does Centrifuge (CFG) work?

Centrifuge operates through a multi-layered architecture connecting real-world assets to DeFi liquidity. The process begins with an "Asset Originator," such as a company, using Centrifuge's platform to tokenize a real-world asset (e.g., an invoice or real estate). This creates a non-fungible token (NFT) representing the legal claim to that asset. These asset NFTs are then pooled into a smart contract-based "Pool" based on risk and asset type. Investors, or "Liquidity Providers," can deposit stablecoins like DAI or USDC into these pools to earn yield. Borrowers draw funds from these pools against their tokenized assets, paying interest that is distributed to the liquidity providers. The entire system runs on the Centrifuge Chain, a dedicated blockchain built with Substrate, which ensures security, scalability, and low transaction costs for these financial operations.

What makes Centrifuge (CFG) unique and valuable?

Centrifuge's primary innovation is its focused infrastructure for real-world asset (RWA) tokenization, a sector seen as a major growth frontier for DeFi.

• Specialized RWA Protocol: Unlike general-purpose lending platforms, Centrifuge provides tailored tools for legal structuring, risk assessment, and compliance needed to bring tangible assets on-chain securely.
• Native Blockchain: Operating its own Substrate-based chain gives Centrifuge greater control over transaction costs, speed, and governance, optimizing the chain specifically for asset financing rather than relying on congested general networks.
• Direct Connection to Major DeFi: Centrifuge pools are integrated with large DeFi money markets like Aave, allowing its tokenized RWAs to be used as collateral across the broader ecosystem, significantly amplifying potential liquidity.
• Solving Real-World Problems: It addresses a critical pain point for SMEs—access to affordable, non-dilutive capital—by unlocking the value trapped in illiquid assets like unpaid invoices.

What is Centrifuge (CFG) used for?

The CFG token is the lifeblood of the Centrifuge network, with several core utilities:

• Governance: CFG holders govern the Centrifuge DAO. They vote on proposals concerning protocol parameters, treasury spending, technical upgrades, and integrations.
• Network Security: Participants stake CFG tokens to become validators or nominators in the Nominated Proof-of-Stake (NPoS) system, securing the Centrifuge Chain and earning staking rewards.
• Transaction Fees: CFG is used to pay for transaction fees (gas) on the Centrifuge Chain for actions like minting asset NFTs, interacting with pools, and governance voting.
• Incentives: The protocol can use CFG tokens to incentivize desired behaviors, such as providing liquidity to new asset pools or participating in early-stage governance.

How Is the Centrifuge (CFG) ecosystem developing?

The Centrifuge ecosystem is expanding through strategic growth in key areas:

• Diversifying Asset Classes: While starting with invoices and trade finance, the protocol is expanding into new RWA verticals like renewable energy project financing, real estate, and royalty streams.
• DeFi Integrations: Continued and deepened integrations with top-tier DeFi protocols like Aave and MakerDAO are crucial, allowing Centrifuge's tokenized assets to be leveraged across the widest possible liquidity landscape.
• Institutional Adoption: A major focus is onboarding more institutional asset originators and investors, bringing larger volumes of credible assets and capital into the ecosystem. Partnerships with traditional finance entities are key here.
• Developer Tools: The ecosystem is fostering development by providing robust toolkits and documentation for builders to create new applications, investment vehicles, and services on top of the Centrifuge infrastructure.

How to mine Centrifuge (CFG)?

CFG is not mined in a traditional Proof-of-Work sense. New CFG tokens enter circulation primarily through two mechanisms:

• Staking Rewards: Validators and nominators who stake CFG to secure the network earn block rewards in the form of newly minted CFG tokens. This is the primary method of participation akin to "mining."
• Ecosystem Incentives: The protocol's on-chain treasury and inflation mechanism can mint new CFG to fund grants, liquidity mining programs, and other initiatives designed to grow the ecosystem. There is no fixed maximum supply; issuance is governed by DAO proposals to balance network security with inflation.

How to keep your CFG Coin safe?

Securing your CFG tokens is paramount. Here are the best practices:

• Use a Hardware Wallet: For significant holdings, store your CFG in a hardware wallet like Ledger or Trezor. These devices keep your private keys offline, providing the highest security against online threats.
• Secure Software Wallets: If using a software wallet (e.g., Talisman, Nova Wallet, or a MetaMask for EVM-compatible CFG), ensure it is from a reputable source, use strong, unique passwords, and enable all available security features like biometrics.
• Guard Your Seed Phrase: Your wallet's recovery seed phrase is the master key. Never store it digitally (no photos, cloud notes). Write it down on paper or metal and keep it in multiple secure physical locations.
• Stake Securely: When staking CFG for rewards, carefully choose reputable validators through your wallet interface to delegate to, diversifying across multiple validators to mitigate risk.

How to buy CFG Coin?

CFG is a popular cryptocurrency listed on many exchanges. However, it is recommended to trade on a major platform like BTCC exchange for higher liquidity and better customer support.

1. Register a BTCC Account: Sign up using your email or mobile number and complete the KYC verification to unlock more features and benefits of the platform.
2. Deposit Funds: Deposit fiat currency (via bank transfer, card, or third-party payment) or transfer USDT from an external wallet into your BTCC account. You can follow this guide.
3. Start Trading: Go to the trading page and search for the spot trading pair CFG/USDT or the perpetual contract CFGUSDT.
4. Place an Order: Enter the amount of CFG you wish to purchase and submit the order. For contract trading, you can also choose to go short (sell) and adjust the leverage multiplier according to your strategy and risk tolerance.
5. Confirm Your Purchase: For spot purchases, check your personal account to see if the coins have arrived. For contract trades, check the trading page to see if your order was filled successfully.