Cryptocurrency Q&A How does centrifuge make money?

How does centrifuge make money?

Pietro Pietro Tue Oct 15 2024 | 6 answers 1854
I'm curious about the business model of centrifuge. How does it generate revenue or make money? I want to understand the financial aspect of its operations. How does centrifuge make money?

6 answers

CosmicDream CosmicDream Thu Oct 17 2024
Notably, the fee collected by the protocol is denominated in the underlying currency, DAI. DAI, as a decentralized stablecoin, ensures stability and predictability in the value of the fee, mitigating potential volatility risks.

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Martina Martina Thu Oct 17 2024
The collected DAI fee then undergoes a conversion process in the open market. Here, it is exchanged for CFG tokens, the native cryptocurrency of the Centrifuge ecosystem. This conversion not only adds to the circulating supply of CFG tokens but also incentivizes participation in the blockchain's financial activities.

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Andrea Andrea Thu Oct 17 2024
The integration of the fee structure into the loan origination process ensures a seamless and efficient revenue generation mechanism for the Centrifuge blockchain. It promotes the widespread adoption of the platform by incentivizing users to utilize its services for their financial needs.

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ShintoSanctum ShintoSanctum Thu Oct 17 2024
Revenue generation on the Centrifuge blockchain is primarily fueled by the issuance of novel fixed income securities. This process involves the origination of loans from a dedicated pool, wherein the protocol plays a pivotal role.

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Martina Martina Thu Oct 17 2024
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