Centrifuge unveils “Centrifuge Connectors” to advance a fully-native, multi-chain DeFi ecosystem
Late last year, we wrote about Centrifuge after the decentralized asset financing protocol partnered with Aave to launch the first real-world asset market on the Ethereum-based decentralized lending protocol platform Aave. Since then, the Centrifuge team continues to push boundaries and provide tools to help DeFi users.
Today, Centrifuge announced the launch of Centrifuge Connectors – a cross-chain solution that melds the Real-World Asset (RWA) market with the fragmented decentralized finance (DeFi) ecosystem.
With Centrifuge Connectors, investors and borrowers can access liquidity from multiple DeFi protocols without depending on third-party integrations. For the first time, investors can seamlessly add liquidity to their preferred Centrifuge pool directly from any supported chain – without first bridging their assets to the Centrifuge chain.
Connectors is a hybrid solution that combines some of the best features of a bridge and fork simultaneously. It offers simple integrations and low governance overheads, while providing greater composability with pooled and split liquidity.
Ava Labs (the primary developers of the Avalanche blockchain), Moonbeam, and Nomad share Centrifuge’s vision of a multichain DeFi ecosystem and are the inaugural partners for the new cross-chain solution. Connectors use Nomad Bridge’s cross-chain functionality as its underlying infrastructure, harnessing its security and efficiency to natively bridge to multiple blockchains. The product will be available publicly later this year, with more protocol integrations to be announced in the coming months.
In a statement, Centrifuge Co-Founder and CEO Lucas Vogelsang said: “Centrifuge believes in the multi-chain future of DeFi. Today, we’re announcing Centrifuge Connecters, a hybrid cross-chain solution that combines the speed and efficiency of a bridge with the native experience of a protocol fork.”
Vogelsang added, “We’re excited to pioneer this novel concept with Avalanche, Moonbeam, and Nomad as our inaugural partners – and are thrilled to bring Centrifuge assets into more DeFi protocols through Connectors in the coming months.”
The launch of Connectors is another step forward by Centrifuge towards an open, transparent, and accessible financial world.
“In the multi-chain world, there are lots of novel and useful cross-chain applications that require interoperability (one of which is RWAs). That’s why we’re excited for Nomad to help power Connectors and assist Centrifuge in achieving it’s mission to bring on-chain liquidity to RWAs.,” said Danny Organ, Nomad Marketing Lead.
Centrifuge Connectors employ a set of Solidity smart contracts that can be readily deployed on top of any EVM-compatible bridge to transfer KYC-ed and permissioned Centrifuge pool tokens to users across multiple chains. It also allows users to directly withdraw or invest into a pool using the native stablecoin of the target chain. Pool liquidation mechanisms can also be enabled for efficient deployment across different chains.
Connectors provide users with a fully-native experience across supported ecosystems – including MakerDAO, Aave, Moonbeam, and Avalanche. By expanding access to liquidity outside of the native protocol, Centrifuge allows DeFi users to onboard its Real-World Assets (RWA) in a simple and efficient way on supported chains.
Founded in 2017, Centrifuge is a decentralized asset financing protocol. The platform enables a radically faster, more cost-effective, and fully-transparent model for connecting investors and borrowers with bankless liquidity. Centrifuge is unlocking economic opportunity for all with more equitable access to capital and credit.
Avalanche is the fastest smart contracts platform in the blockchain industry, as measured by time-to-finality, and has the most validators securing its activity of any proof-of-stake protocol. Avalanche is blazingly fast, low cost, and green. Any smart contract-enabled application can outperform its competition by deploying on Avalanche
About the Moonbeam Network
Moonbeam is a smart contract platform for building cross-chain connected applications that can access users, assets, and services on any chain. By uniting functionality from Ethereum, Cosmos, Polkadot, and more into a single platform, Moonbeam solves today’s fragmented user experience — unlocking true interoperability and paving the way for the next generation of applications. The Moonbeam platform uses integrated cross-chain messaging to allow developers to create smart contracts that access services across many remote blockchains. This approach, plus Moonbeam’s developer-friendly EVM platform, vast tool support, and modern Substrate architecture, creates the ideal development environment for building connected applications.
Nomad is an optimistic interoperability protocol that enables seamless message passing between blockchain networks. The goal of Nomad is to provide the most secure cross-chain infrastructure to enable users and developers to interact securely in a multi-chain world.