Real World Asset Market Goes Live, Uses Centrifuge and Aave Protocol

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 changes the landscape of what is possible not only for protocols such as Aave, but across DeFi as a whole. Creating various entry points into DeFi, making it more accessible, is a driving force of the Aave Companies’ vision, and we are excited to see Centrifuge push this further through the collateralization of real-world assets.

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,

The RWA Market bridges the regulated world of TradFi to the trustless world of DeFi. Creating an infrastructure to securely onboard RWA that is able to scale has been exciting and we’re proud to see this work pay off.

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.