A hybrid cross-chain solution launching in partnership with Ava Labs, Moonbeam, and Nomad to bring the trillion-dollar Real-World Asset (RWA) market on-chain
Why is a cross-chain strategy important?
We believe in the multi-chain future of DeFi — a world where investors and borrowers can access liquidity from any protocol they want without the limitation of third-party integrations. Centrifuge Connectors is a step forward in making that future a reality.
And we aren’t the only ones who believe in multi-chain.
Ava Labs (the primary developers of the Avalanche blockchain), along with Moonbeam, and Nomad, share a joint vision for this future, and we’re happy to announce them as the inaugural partners for our cross-chain solution — Centrifuge Connectors.
“Today, we’re announcing Centrifuge Connecters, a hybrid cross-chain solution that combines the speed and efficiency of a bridge with the native experience of a protocol fork.
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.”
– Lucas Vogelsang, Centrifuge Co-Founder and CEO
As the Layer 1 for Real-World Assets (RWAs), Centrifuge is relentlessly focusing on bringing the entire world of credit onto the chain of your choice.
What is Centrifuge Connectors?
Connectors allows investors to provide liquidity into Centrifuge pools without having to bridge over to the Centrifuge chain. It provides a fully native experience for users on any supported chain.
It uses the Nomad Bridge and its functionality for cross-chain apps (xApps) as the underlying infrastructure. We believe that Nomad is the most secure bridge out there today for bridging to a number of other chains.
“In the multi-chain world, there are lots of novel and useful cross-chain applications that require interoperability (one of which is RWAs). That’s why we’re excited for Nomad to help power Connectors and assist Centrifuge in achieving its mission to bring on-chain liquidity to RWAs.”
— Danny Organ, Nomad Marketing Lead
Who benefits from Connectors?
L1 & L2 Users. Users can provide liquidity to Pools on Centrifuge on any supported chain. Connectors is integrated without the need of bridging to Centrifuge Chain.
DeFi Protocols. DeFi Protocols trying to grow their user-base can now onboard Centrifuge Real-World Assets. Connectors enables cross-chain protocols like Avalanche, Moonbeam, MakerDAO or Aave to tightly integrate across chains in a simpler and safer way by not relying exclusively on the liquidity native to the chain the protocol runs on.
The best of both worlds: not a bridge or a fork
Connectors is an innovative hybrid solution. It combines the benefits of a bridge — simple integration and low governance overhead, with the benefits of a fork — composability with pooled liquidity.
This novel approach also allows Connectors to avoid the technical complexity and operational challenges of traditional forks and bridges.
On a technical level, Connectors uses a set of Solidity contracts that can be deployed on top of any general-purpose EVM bridge to do the following:
- Transfer a KYC-ed/permissioned Centrifuge Pool token to users across different chains
- Allow users to directly redeem or invest into a pool using any native stablecoin on the target chain
- Integrate into liquidation mechanisms for DeFi protocols so that they can liquidate LP tokens across chains
The Connectors contracts can use different bridges to access more chains but will initially target to support Nomad at launch. This abstraction means Centrifuge can scale to more chains quicker and more easily, bringing Centrifuge’s assets to even more users.
What’s next?
Bringing the entire world of credit on-chain represents a trillion-dollar opportunity that not only brings real-world utility to DeFi but also more stability with yield uncorrelated with crypto volatility.
Centrifuge Connectors will be available publicly later this year, with more protocol integrations to be announced in the coming months.
This new cross-chain solution can exponentially unlock liquidity where users already are — it’s yet another step in the Centrifuge mission to build a better, open, transparent, and accessible financial world. ꩜
Join us for a live Twitter Spaces event on Wednesday, July 6 for a deeper look at Connectors — featuring our co-founder Lucas and key launch partners from Ava Labs, Moonbeam, and Nomad!
Introducing Centrifuge Connectors was originally published in Centrifuge on Medium, where people are continuing the conversation by highlighting and responding to this story.
