Polkadot ecosystem, the Ethereum’s Contender - Crypto Academy / S4W7 - Homework Post for @allbert
Hello everyone. Our world has been fighting a big epidemic for almost 2 years. I hope all of you are in good health. Stay healthy!
Today I will share with you the my homework given by the professor @allbert
1-)Explain in your own words why you chose it and why do you think it is relevant to the world?
For a long time I researched projects working on Polkadot. For this assignment, I chose the project named Centrifuge(CFG). When I reviewed the project, I thought it was a beautiful project and had a very high potential.
I can say that the purpose of the project gives a direct answer to the question in the homework. This is because the Centrifuge project aims to connect the real world with DeFi. In other words, it brings RWA (Real-world assets) to blockchain technology.
To give examples of real-world assets: real estate documents, stocks, invoices, copyright documents, car documents etc. This project offers liquidity opportunities to businesses and institutions, regardless of whether they are small or large. Investors can also earn income at a certain apy rate by investing in these businesses or institutions.
I think the fact that all this happens with real world assets is why this project is attracting so much attention. After converting your car or real estate to NFT, you can create liquidity or earn profits by showing collateral.
Another reason for my interest in the project is the cooperation agreements and the grants it has received. It cooperates with many big projects such as Maker and aave. In addition, project developers have been able to receive hundreds of thousands of Euro grants and loans from a bank in Germany. These show how valuable the project is.
In short, the fact that it connects the real world to DeFi, provides liquidity opportunities especially to small businesses, provides investors with a good source of income, and the support received by the project has an important place in my choice of Centrifuge.
2-)Description of the project and its platform.
Centrifuge was founded in 2017 by Lucas Vogelsang and Martin Quensel. They were able to raise large sums of funds, approximately $12 million, by the time they were launched. In addition to being a good project, the past success of the founding partners of the project has also caused this.
Since it is built on a centrifuge substrate, it can be connected to polkadot as a parachain and bridged with ethereum. In addition, it can connect with all other DeFis in the polkadot ecosystem.
Centrifuge Polkadot enables to connect the real world to DeFi using Ethereum, stablecoins and NFTs. Real-world assets (RWA) are tokenized into NFT. Converted assets can be sold as NFTs on the platform or used to provide liquidity.
Centrifuge provides financing to companies and organizations, large or small. Investors receive regular income. It is ensured that both sides win.
It is a project with a large staff in terms of developers. In addition, there are people who have signed successful projects in the past among these names. This increases the confidence of the investors in the project.
Altair
It is a network created by Centrifuge developers to establish a bridge connection between Kusama network and Centrifuge. Tinlake, Centrifuge's dApp, can now run on the Kusama network.
Centrifuge Protocols
P2P: P2P or peer to peer is a protocol used to exchange information, data or assets between 2 parties without a central authority. It is used in the Centrifuge ecosystem as a messaging protocol to exchange information between asset creators, investors, data providers and others.
PoS: It is the protocol used in Centrifuge's own token, CFG.
ERC-721: RWAs tokenized in the Centrifuge ecosystem are converted to NFT using the ERC-721 protocol.
Centrifuge Partners
CFG Fundamental Analyse
- Current Value: 1,86$
- Current Market Cap: 202,825,984$
- Current Volume: $908,879
- Total Supply: 430,011,123
- Circulating Supply: 109,008,242.00 CFG
Centrifuge Social Media Accounts
3-)Functionalities and real-life applications.
We mentioned above that real assets are connected to DeFi with Centrifuge, these assets are tokenized and liquidity is provided by showing them as collateral. All of this is done through the dApp called Tinlake, Centrifuge's first major project.
First we have to connect wallet to connect and use Tinlake. I will be connecting with my MetaMask wallet for this homework.
How to connect wallet to Tinlake?
First, click Connect Wallet in the upper right corner.
For this homework I choose MetaMask. You can choose another wallet if you wish.
Follow the steps in the screenshot.
We have successfully linked our wallet to tinlake.
Invest & Rewards
DAI is used as a stable coin when investing in Tinlake. As a reward, DROP, TIN and CFG tokens are earned.
The total amount of DAI locked in the tinlake pool at the time of doing this assignment is 35,773,693. This means that the companies involved in this project have received a total investment of more than 35 million dollars so far.
While on Tinlake's homepage, you can access the projects on the platform. When showing how to invest in a platform, I choose the project with the highest APY.
On the page that opens, you can access information such as website, pool value, asset originator details about the project you will invest in. You can also invest in the invest section I marked in the upper right corner and start earning tokens at the specified apy rate.
You can invest from the investments section of the tabs above. You can also see the DROP and TIN tokens you have earned after investing. If it caught your attention, you need to make a minimum investment of 5,000 DAI to earn DROP tokens, and contact issuer to earn TIN tokens.
After clicking Claim CFG on the homepage, you can see your DAI investments, the amount of CFG you will earn and the CFGs you have earned.
- Daily Reward Rate: 8.0000 CFG / 10k DAI
- Investor Rewards: 8,963,845 CFG (Total)
- Asset Originator Rewards: 2,652,912 CFG (Total)
How can I create Capital?
You should contact the Centrifuge team in order to receive investment and create capital on the Tinlake platform. I don't think they will accept everyone. I think you should have a significant project and history.
If you have a good project and you think you can meet the criteria: Click issuers on the homepage of the Centrifuge site from the tabs above.
Then click Access capital from the page that opens.
Then a form will appear and you will fill it out. You will be able to access the opportunity to create capital through Tinlake if you are deemed eligible.
4-)Future development and associated projects.
Nexus Mutual & Centrifuge
On October 14, it was announced that a cooperation agreement was signed between Centrifuge and Nexus Mutual. With this partnership, investors and issuers can get coverage. In other words, investors and issuers will be able to receive refunds for loss of funds arising from a possible smart contract problem. But I would like to point out that it does not cover the losses in this pool. Also, NXM stakers will be able to receive USDC rewards.
Medium 
Medium
Altair Network Wins Parachain Auction
As you know, Altair is a project developed by the centrifuge team. In the 9th slot auction held on the Kusama network, altair received the highest investment and finished in the 1st place and won. The project has collected a huge amount of KSM tokens, such as $61 million.
As a result, this project, which now aims to tokenize real-world assets, can now be financed on the Kusama network. We can say that this event created a bridge connection between Centrifuge and Kusama.
Centrifuge & Elemica
Partnerhip between Centrifuge and Elemica had a great impact. With this partnership, it is planned to create a common network and workspace to solve the challenges of DeFi. Centrifuge and Elemica will work together to explore ways to secure the supply chain, improve supply chain phasing, and exploit a variety of other situations, and try to make the system even better.
5-)Make a technical analysis of the token of the selected platform, then through your validated exchange account make the purchase of the token (15 USD as a minimum). Screenshots and an explanation of the procedure are required.
I performed my analysis on the Heikin-Ashi chart. I saw small unstable candles forming on the chart. Later, I saw that long green candles were formed without a lower shadow. This was signaling me to enter in the long position.
I also saw that the 21 EMA has started to move above the 55 EMA. After this situation, I decided to buy. If there is an upside breakout, I think the price will rise and make a good profit.
Buying Process
I made the buying through the gate.io exchange.
- Fill Price: 1.9083 USDT
- Amount Filled: 16.271 CFG
- Total: 31.050 USDT
CONCLUSION
Thanks to this homework, I had the opportunity to research the Centrifuge project in detail. Although it is a bit difficult to reach the resources about the project since it is a relatively new project, I learned a lot while doing this homework. This project connects real-world assets to the blockchain world by being tokenized and converted into NFT. Being non-fungible and taking place in the blockchain system, the security of the assets is protected at a high level. It also provides an opportunity for small businesses to achieve their goals. We all know how real-world banks work and the high fees they charge. With this project, both good projects will be funded and people will be able to earn profits by investing in good projects. Centrifuge tokens can also be a good investment opportunity for people who miss opportunities such as BTC, ETH, SOL. I think that this project, which has a very high potential, will be in much better places in the coming years.
Thanks.
CC:
@allbert
#club5050 😀