Real World Asset (RWA), the network built under Centrifuge and Aave Protocol technology, goes live. This made RWA the first diversified real world asset market on the Aave Protocol.
In addition, the RWA Market is launching with seven pools and is already allowing liquidity providers to deposit USDC. All this is made possible using the blockchain of the Aave Protocol that enables the creation of a market where people can borrow tokens by depositing collateral. The interest rates will depend on the utilization of the market.
Stani Kulechov, Founder & CEO of the Aave Companies explained,
The RWA Market is partnered with END_Labs. It enables businesses to finance their tokenized Real Estate Bridge Loans, Trade Receivables, Cargo & Freight Forwarding Invoices, Branded Inventory Financing, and Revenue Based Financing using crypto. Best of all, it allows users to diversify their portfolio with uncorrelated, stable assets
With RWA Market, the world of traditional finance (TradFi) is taking a step towards DeFi. The users of the Aave Protocol who previously were only able to lend against crypto-native assets can now earn yield against stable, uncorrelated real world collateral.
Lucas Vogelsang, CEO of Centrifuge said,
Meanwhile, Centrifuge is a pioneer in bridging RWA and DeFi. It was the first to introduce RWA as collateral for Maker in April. Also, Centrifuge uses the technology of the Aave Protocol in order for its issuers to have an additional source of liquidity through which to diversify their capital. On the other hand, the RWA Market is onboarding real businesses on the asset side and institutions on the user side to make it easier for everyone globally to access financing, creating another bridge from the regulated world of TradFi to the permissionless world of DeFi.
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Source: Cryptocurrency - investing.com
