Reef Finance: A brief overview of the ecosystem.
The birth of blockchain gave room for decentralized finance known as Defi for short. As a new technology, many projects are trying to leverage the platform to provide solutions for a myriad of challenges globally especially in the fintech industry. Although, there has been tremendous progress as it were. However, as the industry is relatively new and still growing, new startups are also welcome to play alongside other competitors. Reef Finance as a creative tech company saw a large need in the industry and decided to provide solutions.
The reef Finance is a smart liquidity aggregator and yield engine that enables trading with access to liquidity from both CEXes and DEXes while offering smart lending, borrowing, staking, mining through AI-driven personalized Reef Yield Engine.
Liquidity problem where the centralized exchanges are isolated and prone to hack while the DEXes have no liquidity and difficult to use. The Defi ecosystem also faces a fragmentation problem, where users have to manage multiple addresses on multiple platforms, to access their assets and data, they have to navigate to these platforms individually.
When asked why Polkadot ecosystem this is what the team got to say "Polkadot’s interoperability layer allows us to communicate with all the blockchains and still achieve high throughput. Additionally, we inherit their security model, which means we get to be highly resilient, can do forkless upgrades while still being able to maintain stable on-chain governance. We are fully compatible with Ethereum and the current Defi ecosystem, but we believe to innovate and take the landscape to the next level, we have to take it cross-chain, and through Polkadot, we can achieve that.
Besides this, Polkadot’s parachain communication (XCMP) and bridging mechanism, combined with the possibility to run solidity code on parachains such as Plasm and Moonbeam, use native Ethereum addresses and huge ecosystem support (Web3, Parity) were the reasons why we chose to build on Polkadot. Reef being cross-chain gives us flexibility, which means we can shift our product and features based on where the users are and what the users want/need in the future"
Reef Tokenomics:
Token Type: Bep20 & ERC20
Total supply: 20,000,000,000
Initial circulating supply: 7% of the total supply
Token distribution: 1 week within TGE
Private sale token price: 1 Reef $0.00125 USD
Strategic sale token price: 1 Reef $0.0009 USD
Seed sale token price: 1 Reef 0.0007
For more information on token model, see the infographic below 👇
Reef Token Use Case:
According to the official whitepaper, The reef token is a governance token, so the users will be able to vote on different proposals (releasing new features, readjusting certain parameters in the system, etc.). Besides governance, the token is powering our infrastructure, so you can pay the protocol fees with it.
It can also be used to stake into the Reef pool and get RPTs (Reef Pool Tokens), but it's also going to be used in the yield distribution mechanism (customizable payout ratio for the yield that the basket generated), which will allow the user to farm the Reef token and directly stake it into the pool. More on Reef token use case can be found here UseCase
Conclusion: Decentralized finance (DeFi) is relatively new in blockchain technology. As many new projects leverage the platform to provide solutions to some of the identified challenges facing the industry, we are going to witness an even more influx of innovative ideas. I hope to see Reef Finance deliver on its roadmap and eventually become the first and best cross-chain DeFi operating system on the Polkadot ecosystem.
To know more about Reef Finance;