A platform for linking real-world assets to DeFi protocols, Centrifuge has just announced a collaboration with Aave. This will lead to the launch of the Real World Assets (RWA) market on the protocol. In particular, DeFi clients will be able to use it to obtain returns against real assets such as real estate. Explanations.
Assets uncorrelated to cryptocurrencies as collateral in DeFi
The introduction of a real-world asset market on Aave means that assets uncorrelated to cryptocurrencies will now serve as collateral for loans in the protocol. This will therefore allow investors to borrow tokens on a wider range of assets with interest rates fluctuating according to supply and demand. Real-world asset owners will be able to create pools from which other investors will buy tokens by depositing stablecoins. These stablecoins can then be borrowed against real world assets.
Centrifuge’s RWA market includes assets such as mortgage bridging loans and freight and shipping invoices. “ The RWA marketplace is an indispensable cornerstone, not only for protocols like Aave, but also for DeFi as a whole. Removing barriers to entry and making DeFi accessible to all is part of the vision of the Aave companies, and we are excited to realize this vision through the collateralisation of real-world assets, made possible by Centrifuge. “Said Stani Kulechov, the founder of Aave.
An already successful integration on MakerDao
This isn’t the first time Centrifuge has campaigned for the integration of real-world assets into the DeFi space. Last April, the platform already announced the introduction of these assets as collateral in MakerDAO. It already has more than 50 million DAI in total locked value, with an estimated current yield of 24% per year.
For its part, Aave has regularly worked to increase the options offered in terms of warranty to DeFi users. At the beginning of the month, the protocol notably announced the launch of Boosted Pools in partnership with Balancer. This is a program that allows liquidity providers to potentially achieve higher returns through additional sources of collateral.
The introduction of real assets will certainly increase the number of users using DeFi services. The choice of the assets concerned will however be decisive in guaranteeing investor protection. This initiative should promote the development of the Aave protocol, the native token of which could experience a rally in 2022.
Source: Crypto Briefing
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Luc Jose Adjinacou
Far from having dampened my enthusiasm, an unsuccessful investment in 2017 in some crypto only increased my enthusiasm. I therefore resolved to study and understand blockchain and its many uses and to relay information relating to this ecosystem with my pen.