Centrifuge Review | Say Goodbye to Centralized Lending Forever!? (Polkadot Parachain)

Is Centrifuge $CFG the next generation of lending? Say goodbye to banks forever with NFT’s!

Welcome back to another video!

In today’s video we visit a Polkadot Parachain contender called Centrifuge ($CFG) which is participating in the second batch of auctions. This review is a part of my month-long series where I cover Polkadot Parachain contenders so you are the most informed when it comes to investing in the right one!

So Centrifuge plans to allow its users to participate or create their own collateral-backed asset pools where they tokenize their real world assets, such as cars, houses, property, invoices, royalties (the list goes on) and use them to receive funding! They also allow the investors that fund these loans to receive stable and high interest rates, not commonly seen in cryptocurrency. I go on to explain the process briefly in the video, but also break the project down on a fundamental level as well. Please watch to the end for my overall opinion on the project. I do apologize for the length of the video!

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0:00 - What is Centrifuge?
6:30 - My Concerns
9:23 - Coin Market Cap Analysis
14:10 - The Utility Token Use Cases
19:41 - The Tokenomics
22:43 - The Vesting Schedule
26:27 - The Backers
27:51 - My Overall Opinion

[NoBsCryptoOfficial]

So here is the answer to my first question. This has been sent by a Centrifuge ambassador "The issuer enters an agreement through an SPV, and in case of default, the investor is entitled to the revenues generated by the underlying assets until the loan is repaid. There are also other protections in place eg. Tin-risk buffer that offers default protection and typically issuers themselves need to invest in this themselves to show they have skin in the game". So essentially the user needs to put down some capital as you would typically do in a real loan application. It's this capital that is used as collateral, as well as the revenue generated by the asset (in the case of a Royalty loan, investment property etc) if the user defaults or runs away! I hope this makes sense. So far no further updates on the two proceeding questions however I will update accordingly :)

[AHHHHHHH]

Could you pls do a deep dive on Polkadot. Some ppl are still confused

[yetibuck]

Excellent, excellent quality. Please continue with Dotsama based reviews. Big fan of your previous Dotsama/CLO content.

[baronsengir]

Very complete breakdown of Centrifuge, thx for the review!
Your viewers will go exponentially when you keep burying us with this kind of content!!

Based on this video, Im gonna skip Centrifuge & hold my DOT for another parachain.

I have the same reservations like you.

[billclay]

Tremendous content as always brother. Keep up the great work. Love your vids like these detailing great projects.

[Cobey_Smith]

Didn’t know you covered CFG already! Would love to see you revisit ❤

[kinghimself]

Great review! I like the length and the depth of the content. 👍

[michelstringficelle]

Really good presentation : I loved the CMC broke down detailing everyparts and saying if it's good or not ! Small question : I didn't catch it clearly : is it concerning that team and advisors hold about 40 % ?

[nofxrelig]

Wrapped CFG is already on coinbase. Also isn't galaxy digital one of the big investors?

[mrcooke]

I look forward to these polkadot parachain video's

[sasa]

Man I uses all my dot on top 6 projects. Feel so deep into defi with acala, astar, moonbeam, clpver an para finance. Hard to add another one.

[johnkennedy]

i want to hold this token but what wallets hold it? its not an ether based so how can i hold it with using an exchange?

[kendogx]

Maybe it's a good time for a new video on SAITO after it's big pump yesterday.

[IaintTheHerb]

Hm. The opportunity cost versus just staking the DOT is in the back of my mind.

[mysticjose]

The answer to your question as to what occurs in a liquidation is answered in this video:
Specifically around the 19 min mark but you might want to watch the entire thing for context.

[warwick.schaffer]

As a bit of feedback and if you want to cut down the length I would advise scripting to avoid repetition. when you add lib it's too easy to throw in extra little comments that don't add any value. I think doing this would bring into focus the key points better as well. I have been watching this project also it is really interesting I'm thinking the way it will work with bad actors will be a reputation system. when you start and don't have a reputation interest rates will be high and you will not be able to put up big assets, as you build reputation you'll get better rates and will be able to put in bigger assets. There is another polkadot project I am interested in LIT is the token litintry I think I am wondering if it will play a part in this kind of ecosystem.