Glossary

A reference guide to key terms and concepts used across the Centrifuge documentation.

Centrifuge-specific terms

Centrifuge V3
The third version of the Centrifuge protocol, designed for scalable, permissionless, and multi-chain asset tokenization.

RWA (Real-World Asset)
A physical or offchain financial asset such as bonds, real estate, or private credit that is tokenized onchain.

Hub chain
The central coordination chain for a pool. Manages accounting, permissions, share prices, and controls interactions across spoke chains.

Spoke chain
A network where user interaction occurs. Vaults are deployed on spoke chains, and investors deposit or redeem assets there.

Hub-and-spoke model
Centrifuge's multi-chain architecture, where one hub coordinates activity across many spokes.

Centrifuge ID (centrifugeId)
A unique identifier for a supported chain in the Centrifuge protocol. Used to direct communication and actions across chains.

Pool
A unique investment product deployed on Centrifuge, consisting of vaults, share classes, and tokens. Identified by a poolId.

Pool ID (poolId)
A globally unique identifier for a pool, derived from the hub chain and local pool index.

Share class
A distinct investment tranche within a pool. Each share class can have different rules, permissions, and associated tokens.

Share class ID (scId)
The identifier for a specific share class within a pool.

Share token
An ERC-20 token representing user ownership in a specific share class. Issued when users invest and burned upon redemption.

Vault
A smart contract that manages deposits, redemptions, and asset allocations for a specific strategy. Vaults can be synchronous or asynchronous.

Synchronous vault (ERC-4626)
A vault with instant execution: deposits are fulfilled immediately and shares are minted in the same transaction. Redemptions remain request-based.

Asynchronous vault (ERC-7540)
A vault with request-based execution: deposits and redemptions become orders that the manager processes, and the investor then claims the result. Useful for offchain or delayed asset management.

Pooled vault (ERC-7575)
A share token that collects value across multiple vaults. Enables strategies with multiple currencies or layered structures.

Asset ID (assetId)
The identifier for a specific investment currency (ERC-20 or ERC-6909) used in a vault, scoped to a given chain.

NAV (Net Asset Value)
The total value of a vault or share class, representing its current worth based on asset prices and liabilities.

Balance sheet
The pool's onchain record of the assets it holds.

Deposit capacity
The bound a manager sets on how much liquidity a synchronous vault accepts.

On/off-ramp
The manager-side rails that control how assets move in and out of a pool: accepted assets, authorized relayers and approved withdrawal addresses.

Token standards

ERC-20
Ethereum's base token standard. Used for share tokens and supported investment currencies.

ERC-1404
An extension of ERC-20 for permissioned tokens. Allows restriction on transfers and redemptions.

ERC-4626
A standard for yield-bearing vaults. Used for synchronous vaults in Centrifuge.

ERC-7540
A request-based vault interface used for asynchronous investing and redeeming.

ERC-7575
A standard that enables a single token to represent positions across multiple vaults. Used for pooled vault strategies.

User roles

Manager
Structures a financial product and operates it onchain through a pool. Responsible for its tokens, investor access, pricing and distribution.

Curator
Designs and manages tokenized strategies by composing assets, vaults, and rules. May or may not involve RWAs.

Investor
Deposits capital into vaults and receives share tokens. Can redeem tokens for the underlying assets or exit the strategy.

Concepts in practice

Tokenization
The process of representing an asset or strategy as an onchain token.

Redemption
The act of converting share tokens back into the original asset or currency, usually through a vault.

Composability
The ability of Centrifuge assets to integrate into DeFi protocols and strategies.

Memberlist
The set of addresses approved by the manager to interact with a product. Maintained per network: approval on one network does not carry over to another.

Order
A deposit or redemption request waiting to be processed by the manager.

Claim
The final step of a request-based operation: collecting the tokens (after a deposit) or the funds (after a redemption) once the manager has processed the order.

Freeze
The manager's ability to block a specific address from operating with the token.