Centrifuge Tinlake — The asset-backed financing DApp

Tap into a decentralized line of credit backed by your real-world assets.

What is Tinlake?

Tinlake allows Asset Originators to finance their assets and Investors to invest in them, all without the trust of a middleman or relying on a single-point-of-failure. Asset Originators can make use of financial tools that are usually only reserved for big corporations: securitizations. The protocol coordinates the various parties required to structure, administer, and finance collateralized pools of assets categorized by type and risk (IE invoices, mortgages, auto loans, or royalties). By simplifying the process and reducing costs, Tinlake’s protocol creates financing flexibility for Asset Originators, allowing them to optimize risk allocation and access instant funding from DeFi or their traditional investors.

Why we built Tinlake?

Tinlake is built on top of the Centrifuge protocol. It allows for on-chain borrowing against collateralized assets completely managed by smart contracts. Not only does Tinlake enable Asset Originators to access the growing liquidity in the Decentralized Finance ecosystem, it also enables stablecoin issuers to offer a stable store of value backed by our collateralized asset pools. Ultimately, Tinlake will become a fully decentralized financing protocol that interoperates with different blockchains and plugs into a variety of funding sources, including a variety of stablecoins.

How does Tinlake work?

Tinlake’s set of smart contracts pool NFTs that represent non-fungible real-world assets and use them as collateral to finance an asset in a stable cryptocurrency such as DAI or USDC. This is done by issuing fungible, interest-bearing tokens that represent a claim on a fraction of the proceeds of the entire pool. These fungible tokens can be locked in crypto protocols or transferred to investors to draw funding. When liquidity is injected into Tinlake, our risk and yield tokens DROP/TIN are minted accordingly. The same mechanism applies in reverse when funding is paid out and tokens are burned.

Asset Originators can create individual Tinlake pools per asset type, e.g. one dedicated pool for invoices and one pool for mortgages. All Tinlake pools are independent of each other and can be configured individually, e.g. with different interest rates and collateralization ratios. For funders, risk and proceeds are shared for each pool but not across pools.

Tinlake can be deployed with a two-token structure that allows investors to invest in two different kinds of fungible, interesting bearing tokens: TIN and DROP. Both tokens represent the liquidity deposited into Tinlake and accrue interest over time. TIN, known as the “risk token,” takes the risk of defaults first but also receives higher returns. DROP, known as the “yield token,” is protected against defaults by the TIN token and receives stable (but usually lower) returns. This is similar to common Junior/Senior investment structures.

Benefits

Originators

Decentralized Line of Credit for Your Assets

  • Instant money, on-demand, no bank
  • Cost effective process for collateralization
  • Ability to unlock new assets for funding
  • Flexible and advance repayments
  • Mini Securitizations for lower cost of capital

Investors

High Yield, Low Risk, Short Term

  • Transparent securitizations: track and trace each asset
  • Liquid investments into illiquid assets
  • Continuous returns, 24/7/365
  • Bankless
  • Competitive risk assessment/underwriting
  • Access to newly unlocked asset classes

Interested in using Tinlake? Get in touch!

We work with a broad range of Asset Originators that are looking to offer additional financing services to their existing customer base or are interested in tapping into alternative financing sources. The platforms operate in different markets such as invoice financing, real estate, and logistics. Complementarily, we collaborate with investors - both fiat and crypto - that want to finance these pools.

In order to learn more about Tinlake please take a look at the Developer Documentation.

Any Questions Left?Please get in touch: tinlake@centrifuge.io