Centrifuge continues to enhance the liquidity of the RWA market by introducing new CFG incentives to the LTF/USDC lending market on Morpho. With these incentives, the RWA Market is set to grow further, creating more opportunities for liquidity providers and borrowers.

RWA Market on Morpho

In August 2024, Centrifuge launched its first RWA lending market with Morpho on Base, providing a seamless DeFi experience for institutional investors. The integration with Coinbase Verifications allows a streamlined, secure onboarding process for institutional users. This collaboration ensures that institutions can confidently access the growing RWA market while benefiting from Morpho’s battle-tested, reliable infrastructure.

Why it matters

As the demand for tokenized real-world assets continues to rise, providing liquidity in this space is crucial. The RWA Market on Morpho has already shown impressive growth, attracting over $3.2 million at its peak. With the addition of 90,000 CFG tokens as incentives over 90 days, we’re reinforcing our commitment to building a robust, sustainable market that attracts more lenders and borrowers.

How it works

With this update, 1,000 CFG tokens will be distributed daily to lenders in the LTF/USDC market on Morpho. These rewards are in addition to the baseline borrow interest and MORPHO token rewards already offered, ensuring a competitive return for users participating in the market. The incentive structure will help boost liquidity, making the market more attractive for new participants and providing additional value to existing users. It also helps explore the potential for including higher-yield collateral types as the market matures.

Stay tuned for more updates as we further develop the infrastructure around tokenized RWAs and expand lending opportunities for investors.

To learn more about tokenized RWAs, pools on Centrifuge, or RWA Market on Morpho, reach out to connect@centrifuge.io

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