HomeNEWSAave and Centrifuge join hands to propel 'Real World Assets' Market

Aave and Centrifuge join hands to propel ‘Real World Assets’ Market


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Centrifuge on Tuesday announced that they have launched the Real World Assets market (RWA) on Aave. These real-world asset markets allow traders to earn yield in opposition to real-world belongings that don’t tally with crypto belongings. The real-world assets utilized in Defi ( Decentralized Finance ) are also known as Real World Defi.

But what are exactly Real-world assets in Defi?

In simple terms, if you own some real-world belongings like real homes or swimming pools and turn them into virtual tokens then different traders may purchase these tokens by depositing stablecoins into these RWAs. These deposited stablecoins can then be borrowed from anyone in opposition to any real-world assets.

Earlier, Aave users were only allowed to borrow and lend digital assets, and prices changed based on supply and demand indicators. But this new market enables users to turn real assets into tokens and use them as collateral for borrowing cash.

Real World assets in Defi have a high potential to pave the way for real-world adoption at scale.

As founder of Aave, Stani Kulechov, quoted:

The RWA Market is a lot wanted to construct block not just for protocols equivalent to Aave, but throughout Defi as a complete. Pulling down obstacles of entry and making Defi accessible to all is a part of the Aave Corporations’ imagination and prescient. We’re excited to be fulfilling this by the collateralization of real-world belongings, made doable by Centrifuge.

Other cryptocurrencies brought volume, but they did not add to the protocol’s resilience. But one of the positives coming out of this is that it combines both.

The perfect duo perhaps

Earlier this year in April, Centrifuge partnered with another Defi lending protocol Maker(MKR), thus Defi Lending and Real-World Assets form a bridge for the First Time.

The Centrifuge came into existence in 2017. In February this year, Centrifuge has raised millions from big-name investors. According to reports by CoinDesk, Centrifuge has secured $4.3 million to further grow its business

The centrifuge has a total value lock (TVL) of around DAI 51.3m and a yield of just over 22% per year.

On the other hand Aave has ceaselessly helped enhance the choices available to Defi customers. Aave provides competitive rates and a wide range of cryptocurrencies to lend/borrow. Thus it is a preferred site for many to make fruitful transactions.

Soumen Datta
Soumen Datta
Soumen is a freelance writer. Crypto and NFT enthusiast and researcher

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