What is Wrapped Centrifuge (CFG)?

Quick Facts

  • Token name: Wrapped Centrifuge (CFG / WCFG)
  • Blockchain: Ethereum (ERC-20)
  • Peg: 1:1 with native Centrifuge (CFG) token
  • Purpose: Brings CFG utility into the Ethereum DeFi ecosystem
  • Underlying platform: Centrifuge — a real-world asset (RWA) protocol
  • Governance: Native CFG holders vote via a DAO on the Centrifuge network
  • Migration: Centrifuge V3 (2025) consolidated CFG and WCFG into one EVM token

Introduction

Wrapped Centrifuge (CFG) is an ERC-20 token on Ethereum that represents the native Centrifuge (CFG) token on a 1:1 basis. It was created to solve a fundamental interoperability challenge: CFG originally lived on its own Substrate-based chain, making it incompatible with Ethereum's vast ecosystem of DeFi applications.

By wrapping CFG into an ERC-20 format, holders can interact with Ethereum-native dApps, DEXs, and lending protocols without leaving the broader DeFi landscape.

History & Background

Centrifuge was built on Polkadot's Substrate framework with the mission of bringing real-world assets (RWAs) on-chain. Its native CFG token powered staking, transaction fees, and on-chain governance on the Centrifuge Chain.

To extend its reach, Centrifuge introduced Wrapped CFG (WCFG) — an ERC-20 bridge token allowing CFG holders to participate in Ethereum DeFi. In 2025, Centrifuge completed its V3 migration, transitioning to an EVM-based protocol and consolidating CFG and WCFG into a single Ethereum-compatible token.

How Wrapped Centrifuge Works

The wrapping process uses a cross-chain bridge mechanism. When a user wraps CFG, the native tokens are locked in a smart contract on the Centrifuge Chain and an equivalent amount of WCFG is minted on Ethereum. This lock-and-mint design ensures the combined supply across both chains remains constant.

Users can reverse the process at any time — burning WCFG to unlock the original CFG on the Centrifuge network. This two-way bridge keeps the peg intact and the token fully redeemable.

Tokenomics

Wrapped CFG carries the same economic weight as the native CFG token, maintaining a strict 1:1 ratio. Its utility on Ethereum includes liquidity provision on DEXs, yield farming, and collateral use in DeFi protocols.

To access native CFG functions — such as staking for network security or participating in governance — holders must unwrap their tokens back to CFG first.

Circulating supply ? 577.16 million CFG
Total supply ? 577.16 million CFG
Max supply ? -- CFG
Updated 4w ago

Ecosystem & Use Cases

The Centrifuge protocol enables real-world asset tokenization, allowing businesses to bring assets like invoices, trade receivables, and real estate on-chain as collateral. WCFG extends this mission into the Ethereum DeFi ecosystem by enabling:

  • Liquidity provision on Ethereum-based DEXs
  • Yield farming across DeFi platforms
  • Collateral use in lending protocols
  • Access to Centrifuge's RWA infrastructure through Ethereum wallets

Team, Governance & Community

Centrifuge operates with a decentralized governance model via a DAO. Native CFG holders can submit and vote on proposals covering protocol upgrades, fee changes, and network parameters.

The broader community is active across Discord, Telegram, Twitter, and Medium. The founding team is known for its focus on making DeFi credit accessible to businesses that traditionally rely on banks.

Advantages

  • Cross-chain accessibility: CFG holders can access Ethereum's DeFi ecosystem without selling their tokens
  • 1:1 backing: Every WCFG is fully backed by a locked CFG, eliminating counterparty risk
  • ERC-20 compatibility: Works with any Ethereum wallet, DEX, or lending protocol
  • RWA exposure: Indirect exposure to Centrifuge's real-world asset tokenization mission
  • Liquidity options: WCFG pairs on major DEXs offer additional earning opportunities

Risks & Challenges

  • Bridge risk: The lock-and-mint mechanism relies on smart contract security; vulnerabilities could affect the peg
  • Governance limitations: WCFG holders must unwrap to CFG to vote, adding friction to participation
  • Ethereum gas costs: High network fees can make small transactions economically inefficient
  • Ecosystem dependency: WCFG's value proposition is tied to Centrifuge's adoption of RWA tokenization
  • Migration complexity: The V3 transition introduced new token dynamics that users must navigate carefully

Long-Term Vision

With Centrifuge V3 migrating to an EVM-based infrastructure, the distinction between CFG and WCFG is being simplified into a single Ethereum-native token. This move signals Centrifuge's long-term commitment to becoming a leading real-world asset protocol within the Ethereum ecosystem, making DeFi credit more accessible to businesses globally and reducing reliance on traditional financial intermediaries.

Frequently Asked Questions

Wrapped Centrifuge (CFG) is an ERC-20 token on Ethereum that represents the native Centrifuge (CFG) token on a 1:1 basis. It was created to allow CFG holders to participate in Ethereum's DeFi ecosystem without selling their tokens.

When a user wraps CFG, the native tokens are locked in a smart contract on the Centrifuge Chain and an equivalent amount of WCFG is minted on Ethereum. The process is fully reversible: burning WCFG unlocks the original CFG.

Centrifuge is a blockchain protocol focused on bringing real-world assets (RWAs) like invoices and trade receivables on-chain as DeFi collateral. It aims to make credit more accessible to businesses without relying on traditional banks.

WCFG itself does not carry direct governance rights. To participate in on-chain governance, holders must unwrap their WCFG back to native CFG on the Centrifuge network.

With WCFG, you can provide liquidity on DEXs, participate in yield farming, and use the token as collateral in DeFi lending protocols. It is compatible with any ERC-20-supporting wallet or application.

In early 2025, Centrifuge completed its V3 migration to an EVM-based protocol, consolidating the original CFG and Wrapped CFG (WCFG) into a single Ethereum-compatible token. This simplified the ecosystem and removed the need for cross-chain bridging.

Wrapped Centrifuge is not the same as native CFG — it is a separate ERC-20 token designed to track CFG's value on Ethereum. Following the V3 migration, the two tokens have been unified into a single EVM-compatible asset.

Key risks include smart contract vulnerabilities in the bridge mechanism, Ethereum gas costs reducing efficiency for smaller transactions, and dependency on Centrifuge's broader adoption of real-world asset tokenization.