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Modularity

The Centrifuge Protocol is designed as a modular, extensible system to support complex financial products. This architecture empowers builders to plug into various components independently or collectively, enabling permissioned tokenization, cross-chain deployment, custom pricing logic, and diverse collateral management.

Below is an overview of the smart contracts of the Centrifuge Protocol and where builders can plug in, with some examples:

Transfer Hooks​

Transfer Hooks are customizable restrictions and checks that can be applied to ERC20 tokens. They serve as plug-and-play extensions for enforcing:

  • Permissioned tokenization: Ensure compliance and access control.
  • Freely transferable tokenization: Used for deRWA tokens to integrate into DeFi.
  • Minimum investment thresholds: Limit the minimum investment amount.

These hooks integrate directly with ERC20 token logic and enable regulatory and operational controls without changing the core token.

Hub Managers​

The Hub is the central smart contract responsible for managing Net Asset Value (NAV) calculations, investor share class logic, and fund-level mechanics. Using Hub Managers, developers can define custom logic for:

  • Automated NAV and token pricing
  • Waterfall structures and tranching
  • Custom share class management
  • Request fulfillment logic

This module provides fine-grained control over fund architecture and investor dynamics, enabling fully customizable on-chain fund operations.

Balance Sheet Managers​

Balance Sheet Managers enable the protocol to support and manage any form of collateral. Whether dealing with tokenized real-world assets (RWAs), stablecoins, crypto-native tokens, or other DeFi protocols - Balance Sheet Managers abstract the logic required to:

  • On/off ramping for assets
  • Integrating DeFi protocols
  • Tracking performance and management fees
  • Integrating onchain loans

This makes Centrifuge ideal for bridging traditional finance and DeFi through modular asset management.

Adapters​

Adapters are the interoperability layer of the protocol. They connect pools on Centrifuge to any blockchain, enabling cross-chain vault deployment and communication. Supported adapters include:

  • Wormhole adapter
  • Axelar adapter

Adapters route cross-chain messages via the Gateway contract, maintaining a 1-to-many relationship between a single hub on one chain and many vaults.