Centrifuge, a decentralized asset finance platform, has just announced the availability of Centrifuge Connectors. By eliminating the need for third-party integrations, it will give investors and lenders access to liquidity across numerous DeFi protocols. Convenient integration and cheap governance costs are provided by the use of connectors. This enables the creation of a wide range of combinations of both pooled and split liquidity. It is a hybrid system that incorporates the benefits of both bridges and forks at once.
How Centrifuge’s Connectors work
Centrifuge Connectors are essentially a cross-chain technology that connects the RWA market with the fragmented DeFi ecosystem. This will lay the framework for a multichain strategy. In order to connect to several blockchains, Connectors employs Nomad Bridge’s cross-chain functionality as its underlying technology. The product will be available to the public later this year, and more protocols will be added in the near future.
Using Solidity smart contracts, Centrifuge Connectors can be easily installed on any EVM-compatible bridge. Centrifuge pool tokens can then be transferred to users across various chains when they have undergone KYC processes. In addition, it enables users to make direct withdrawals or investments into pools using the native stablecoin associated with the target chain. In addition, pool liquidation methods may be enabled in order to facilitate efficient deployment throughout various chains.
Centrifuge, a decentralized system for financing assets, has been around since 2017. With the platform, investors and borrowers can now have access to bankless liquidity. They do this in a way that is far faster, more cost-effective, and completely transparent. The first cross-chain partners, Ava Labs, Moonbeam, and Nomad share Centrifuge’s goal of a multichain DeFi ecosystem.
Lucas Vogelsang, Centrifuge Co-Founder and CEO commented:
“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.”