The decentralized finance sector is rapidly expanding and evolving, and new projects are emerging in the crypto space every day. These days, people have become interested in a more democratic and independent model of managing their finances, which is provided by DeFi projects and blockchain platforms. In this article, we will describe one of the DeFi protocols based on the Polkadata network called Riff Finance and its special advantages in the world of decentralized finance. Stay with us.
Limitations of decentralized finance
Defay industry has introduced advanced financial tools. Platforms like Curve have collected the services of several financial protocols in one platform. However, these platforms are only a storage warehouse and allow for the collection of a handful of cryptocurrencies, which are generally locked on the first layer blockchain.
But the main problem in using these platforms is that users do not have the necessary skills to use different platforms and end up with limited choices. This leads to liquidity fragmentation. Many DeFi users are constantly moving from one project to another, which usually creates unstable fluctuations in liquidity and return on capital.
DeFi projects add new features every day and users face more complications in using these services. Many traders miss the new investment opportunities offered by DeFi projects and end up preferring to trade on centralized exchanges. Due to these complexities and technical limitations, many user assets remain untouched and unused.
How Reef Finance overcomes the limitations of blockchain?
Digital currencies are divided into two categories:
- Coins: Native cryptocurrencies of a first layer blockchain
- Tokens: Currencies built on first layer infrastructure
A native digital currency has an underlying blockchain upon which tokens can be built. For example, Bitcoin and Ethereum are native cryptocurrencies and developers can build their own tokens on these blockchains.
The problem is that the liquidity and tokens created on the main blockchains are limited to that respective blockchain. For example, if you want to transfer USDT from a decentralized blockchain such as Ethereum to another blockchain such as Avalanche, you will need the help of an intermediary exchange. But Reef Finance plans to change that by creating a decentralized platform that aggregates tokens and liquidity across different blockchains.
The idea behind the Reef platform is to simplify DeFi and make it accessible to everyone. Reef Finance’s core team consists of entrepreneurs and crypto-tech veterans with tremendous experience and a proven track record in finance, crypto, blockchain and development. The founder of Reef Finance, Denko Mancheski (Denko Mancheski) claims that Reef enables worry-free trading of tokens built on different blockchains, thereby making DeFi decentralized finance accessible to the public.
What is reef finance?
Reef finance is a DeFi operating system. In fact, Reef Finance can be called a smart liquidity aggregator Profit engine (yield engine) knew that any financial center can be integrated into it.
Reef is the first cross-chain cryptocurrency operating system in DeFi that facilitates the transfer of cash and tokens between different blockchains, as well as between centralized exchanges (CEX) and decentralized exchanges (DEX). Reef Finance based Polkadat network support, enabling the integration of top DeFi protocols into cross-chains. In addition to Polkadata, Reef is also compatible with other decentralized blockchain systems such as Ethereum, Avalanche, Cosmos, Binance, etc. These blockchains control the majority of the liquidity of the crypto market. Developers can use Solidity programming language Create your custom tokens on the Reef chain and can also use the Reef chain to bridge liquidity between these blockchains.
Reef Finance protocol infrastructure
Polkadat works based on parachains. Parachains operate independently in the Polkadat ecosystem, minimizing network congestion even during peak trading times. The reality is that only a few projects can have a parachain slot on the Polkadat network. Projects to get a Parachain on the Polkadat network must be in the process Parachin auction compete with each other
The first phase of Reef Finance’s investment of $3.9 million was made on December 29, 2020. It was the largest investment in a Polkadata-based project to date and was backed by NGC Ventures, AU21 Capital, QCP Capita, Kenetic Capital, Amplifi, and the Krypital Group.
Reef Finance is built on Polkadot and has a parachain that offers benefits such as Polkadot’s proof-of-stake consensus, compatibility with EVM It has scalability, libp2p network and global security. In this way, Ref Finance users experience low-cost and fast transactions and its developers experience compatibility with EVM.
The Reef network is fully compatible with smart contracts. Developers can create custom REEF-20 tokens using Solidity on the platform. A REEF-20 token can be deployed simply with a few clicks. Since Solidity is also used on Ethereum, ERC-20 projects can be immediately migrated to REEF-20. Reef is compatible with Solidity 0.6 and higher projects. Developers in the Reef Finance project have the option to port their projects from Polkadot, BSC, Avalanche, and Cosmos.
Key features of the Reef Finance platform
The Reef Finance system facilitates cross-chain trading on various DeFi platforms such as Aave, Uniswap, Synthetix, curve and Compound. It works by allowing users to find the best rates of return while stabilizing liquidity on the network. Cross-chaining with other DeFi platforms is enabled using the Reef Basket Engine. Reef basket engine includes reef smart engine and reef efficiency engine. These two engines work simultaneously to support the Reef portfolio while enabling the automation of profitability, rebalancing and allocation of crypto assets. All Reef platform tools work based on these two key features, which we will describe below.
Reef Trading Terminal
Assets are traded in Reef trading terminal based on Polkadot atomic bridge and oracles. Reef Finance integrates the liquidity of existing DEXs and centralized exchanges. This leads to an increase in liquidity in the entire ecosystem and, as a result, higher efficiency. The Reef Intelligence Engine is an oracle that provides data to the Reef chain proxy to provide users with real-time data such as asset prices and changes, as well as activities in the liquidity pool. In this way, every user is allowed to participate in DeFi easily and with full safety.
Reef Yield Engine
The Reef platform simplifies and summarizes the complex functions of DeFi by providing investment portfolios for its users. At the same time, Reef’s efficiency engine maximizes their profit by using artificial intelligence. This feature includes Smart lendingborrowing, share ownership, Mining through artificial intelligence and personalized algorithms. Reef is compatible with major wallets and most liquidity providers in the market, and any user can easily import their assets to earn money on the platform.
Reef Finance ecosystem
Reef Finance has an ecosystem of tools and services that network The first layer completes it. The Reef Finance ecosystem has custom tools such as Reef Remix, which is an alternative to ETH Remix, Reef Hardhat, which is similar to Truffle, and Reefscan. These tools are free to use for the public and have open source code on Github.
ReefScan
ReefScan one Blockchain browser which uses the same format as Etherscan or BscScan. Users can monitor transactions, wallet IDs, smart contracts and other on-chain information. You can also interact with Reef smart contracts through Reefscan.
ReefSwap
reefswap is a DEX that a Exchange service Offers for RIF tokens. ReefSwap uses the familiar Uniswap model and users can easily access it through a browser extension. Users can also request an EVM wallet address and assign it to their Reef account.
Reef Web Wallet
The Reef Finance wallet is a crypto wallet consisting of a Decentralized Exchange (DEX) and token generator on the Reef Finance protocol. Here you can save or send tokens. In addition, you can swap them exactly like ReefSwap. But do not forget that to use this program, you must download and then install the Reef browser extension.
Reef Cryptocurrency
of Reef token for Running and managing the Reef Finance platform is used REEF token is the main currency of the REEF chain and is used for liquidity exchange, transaction fees and governance in this network. Riff token holders can participate in maintaining the network. They are called Network Collaborators and create new blocks in the Polkadot Ledger.
Since the Reef Finance protocol is built on Polkadata, Parachain Reef acts as a bridge between blockchains. Validators who validate these parachains vote based on Proof of stake algorithm (PoS) will be selected and will receive their reward from the reef pool profit. Their APR varies based on the size of the locked tokens and the time frame.
Reef token has 16 billion tokens in circulation and a maximum supply of 20 billion tokens. Reef price reached its highest level in March 2021 at $0.057. It was also at its lowest in January 2021 with a figure equal to $0.006. However, overall its value has remained relatively stagnant since its initial coin offering in December 2020.
How does the Reef Finance platform work?
The Reef Finance platform is compatible with major DeFi wallets such as MetaMask, WalletConnect, Torus and WalletLink. When users connect their wallet to the platform, they will have a list of their total asset balance and their current value. Users can transfer their assets to another blockchain after connecting their wallet to the Reef platform. Also, they can convert their assets into Reef tokens. The Reef Finance platform is fully decentralized and non-custodial, meaning funds transferred to the Reef ecosystem belong only to the user, and developers do not have access to private keys or funds whatsoever.
Don’t forget MetaMask wallet is only compatible with Polkadot extension and cannot be used for REEF-20 tokens. However, Metamsk’s Polkadot Extension is used to exchange all DOT-based tokens, which can also be used to exchange on platforms such as Polkaswap.
Staking on the Reef Finance platform
Since the REEF engine is a profit and reward receiver as well as a stake return distributor, users can choose between ETH/USDC and REEF. However, if they choose REEF, they will receive a higher percentage. In this way, users are encouraged to receive a higher percentage of rewards in the form of REEF tokens, while being able to re-share the earned REEF tokens for more profit. In addition, users can also choose deposit lock-up periods. The rule is that the longer the lock-in period, the better the rate users get.
In addition to profitability, stakes in the reef pool generate voting power for investors, which can be used to:
- Selection of those who approve and manage the Parachin Reef.
- Selection of portfolio structure including fees, portfolio composition and other creation conditions
- How to distribute profits
- Selection of pool conditions
Fees in Reef Finance protocol
Fees are charged when transacting on chain infrastructure, such as entering and exiting baskets, as well as resetting them. For example, to rebalance between liquidity pools or rebalance between different asset positions.
Features and benefits of the Reef Finance platform
Reef Finance is a user-friendly platform that provides ease of use and maximum profit to its users. The platform integrates the facilities and services of the centralized and decentralized CEX and DEX exchanges, providing greater liquidity to all cryptocurrency traders and asset managers.
In summary, the main advantages of reef finance are:
- Compatible with DEX and CEX
- Compatible with major blockchains and their tokens
- Taking advantage of the scalability and security of the Polkadat network
- Partnership with the largest exchanges and blockchain projects
- Smart contract compatibility with REEF-20 assets
- Has staking and governance facilities
In fact, the value of Reef Finance comes from technology and technical capabilities, connections with other projects and its uses. As the project becomes more popular and more people join its ecosystem, REEF’s value may come closer to its true value.
What is Reef Finance? Introduction of the Reef Finance protocol in Polkadat for the first time on the Wallex blog. appeared.
