Centrifuge, a leading RWA lending protocol, may have underestimated its bad debt rate by 40%, raising concerns about risk management in DeFi. According to data from rwa.xyz, approximately $5.8 million in loans across two pools, including consumer loans and real estate mortgages, were overdue in 2023. While Centrifuge's Tinlake platform facilitates tokenized asset lending, critics argue its risk assessment may downplay default rates, impacting investor trust. Partnerships with MakerDAO and Aave highlight its growth, but the reported $15.5 million in outstanding loans underscores the need for transparency. As Centrifuge expands its RWA market, addressing these discrepancies is crucial to maintaining credibility in the evolving DeFi landscape.