Frequently Asked Questions

Find a list of frequently asked questions on how Tinlake works below. Is your question not answered, feel free to reach out to us at hello@centrifuge.io.

Table of Contents

Index

Asset Originator
Companies that provide advance financing to multiple businesses. Asset Originators get financed via lenders in Tinlake Pools.
RWA
Real-World Assets; these are non native crypto assets, such as invoices or music streaming royalties.
SPV
Special Purpose Vehicle - a legal entity created to fulfill narrow, specific or temporary objectives. Typically used by companies to isolate the firm from financial risk. In Centrifuge, SPVs enforce that legal recourse is available to holders of DROP and TIN.
DROP & TIN
Based on each NFT pool, ERC20 tokens (TIN and DROP) are minted. These two tokens represent the underlying collateral. DROP is the Senior token with a fixed interest rate and stable returns, loss protected by TIN. TIN is the Junior token with higher yield and risk; takes loss first. You can read more [here.] (https://developer.centrifuge.io/tinlake/overview/tranches/)

Borrowers

What kind of collateral do you support?
Anything which the risk and price of the collateral can be assessed. The collateral needs to be in the format of an NFT, which is a unique token readable by the blockchain. Centrifuge Chain specializes in converting real-world collateral to the NFT format.

Using Tinlake

Can multiple entities make use of the TIN/DROP system or is this a proprietary solution for Tinlake use only?

Risk Assessment

Who verifies for the asset before the NFT is issued?
What is the collateralization level on the NFT portfolio relative to the loan amount?
How is a pool priced? Both at an initial issuance and later during the pool's life?