De-Fi applications have been on the rise in the web3 ecosystem, and each new user is looking for a way to make the best of this new and emerging market. To help users with that is Reef Finance, a project that incorporates the features of major De-Fi applications to provide services tailored to enhance users’ experience and aid them in making the best out of their assets.

What is Reef Chain?

Source: official website

Reef Finance is a worldwide liquidity aggregator and multi-chain smart yield engine that can seamlessly interact with other De-Fi applications. It is home to the Reef Yield Engine, a yield engine that aids smart borrowing and lending, mining, staking, and other activities paired with the power of AI technology.

The Reef chain is compatible with the Ethereum Virtual Machine, allowing developers to easily move Ethereum-built protocols to the Reef chain and host their Ethereum-based dApps on the chain.

Reef offers different features to the De-Fi community to ensure investors and traders get the best possible deals when trading or using other De-Fi services. Its utility token, $REEF, is used to power different projects on the platform, as a means of payment, and as the official store of value in the ecosystem.

History of Reef Finance

Reef Finance was founded in 2019 by Denko Mancheski, a crypto enthusiast with a deep connection to the industry. Denko was the former Chief Technology Officer at Adel, a global crypto hub for blockchain innovation. He created the project to simplify trading and lower the barriers restricting trading.

In November 2021, the project was rebranded from Reef Finance to Reef Chain to reflect its transition from a Decentralized Finance (De-Fi) platform into a fully functional blockchain. Before its launch in December 2020, Reef had public and private token sales of over 4 billion REEF tokens at $0.00095 per REEF.

When the platform was officially launched, the token began trading at $0.02792 per token, earning early investors over a hundred percent return on their investments.

How Does Reef Chain Work?

Source: official website

Reef is a fast, highly scalable, and secure chain with low transaction costs and no wasteful mining. It provides these services through its use of innovative technology like Nominated Proof of Stake (NPoS), extensible EVM, and on-chain upgradability.

The pillar of Reef is a collection of smart contracts that manage the processes within the ecosystem, referred to as the “basket engine.” The basket engine interacts with the analytics engine and the liquidity aggregator to ensure the user is able to trade on several platforms from a central interface. The engine also allows multi-hop strategies between platforms, extending insurance cover to the basket engine.

Reef is built on the Polkadot blockchain and is equipped with several features, such as a modular blockchain that allows easy platform customization to meet the needs of the ecosystem and its users. Also, Reef’s codebase is easily adjustable, meaning it can easily be modified, given new features, or old features can be rebuilt to perform better. Lastly, Reef’s construction on Polkadot grants It a scalable architecture that can handle high volumes of transactions without sacrificing performance.

Lastly, Reef uses a Nominated Proof-of-Stake, a consensus mechanism that emphasizes energy efficiency more than other consensus mechanisms, such as the Proof-of-Work (PoW) used by Bitcoin and Ethereum.

The Reef chain platform relies on nodes selected by the community to approve transactions. This allows regular users, not just miners, to verify transactions, like the PoW consensus. Also, the democratic nature of the consensus means users do not need to secure expensive mining equipment to participate or earn rewards, leading to lower energy consumption rates.

Users on the platform are either validators or nominators. To be validators, the user needs to stake their REEF token, and they are chosen based on the amount staked. Nominators also have to stake tokens; however, the tokens staked determine the number of rewards the nominator will receive.

Features of Reef Chain

Reef chain offers decentralized services to users who are new and not versed in trading crypto assets. To properly perform this task, the platform has equipped itself with features that ensure its success. Some of these features include:

User-friendly Interface

Reef’s main goal is to offer user-friendly services to all De-Fi users. As the De-Fi space grows, the need for platforms that everyone can use grows proportionally. Reef has designed its platform to simplify the De-Fi sector with tools like Nominated Proof-of-Stake (NPoS), which allows users to become validators or nominators.

It has a Reef web app with a browser extension mobile app option, allowing users to control the flow of assets easily from their device of choice. The Ui consists of building tools and components that help developers design dApps without technical barriers.

The Reef Ecosystem

The Reef ecosystem is home to several projects, including wallets like the Reef app, Reef extension, Fearless wallet, Polkadot extension, and Klever, a mobile wallet for Ref support. It also includes Block explorers like Reefscan, which gives users access to smart contracts launched on the platform.

Low Energy Consumption

Reef’s Nominated Proof-of-Stake (NPoS) consensus boasts a relatively lower energy consumption rate (0.00 GWh) than that of popular chains like Bitcoin and Ethereum (11250 GWh.) Users do not need to purchase expensive equipment and, as such, don’t need high computing power to mine or perform transactions.

EVM Compatability

Reef was built using the Solidity programming language, an object-oriented programming language (OOL) for building smart contracts. This allows compatibility with other dApps built on the Ethereum network and allows for the easy transfer of dApps to the Reef network without reworking the code.

On-chain Upgradability

De-Fi networks’ ability to upgrade and develop themselves is a common issue. This has restricted the industry’s growth, leading to the birth of hard forks, which require blockchains to be stopped and created anew. Reef has developed its blockchain with on-chain upgradability through the use of Polkadot’s substrate’s chain upgrade capability, allowing the blockchain to be developed and grown with no restrictions and without losing its decentralization.

Liquidity Aggregator

The Reef platform provides users access to other crypto trading platforms and offers unparalleled liquidity. The aggregated liquidity cuts across decentralized exchanges (DEX) and centralized exchanges (CEX), granting users advantages from both sources, such as high slippage and trading fees.

The platform offers centralized exchange liquidity through broker services, while decentralized liquidity is acquired through online order books and Automated Market Makers (AMMs).

Smart Yield Farming

Another feature of Reef is its smart yield farming option that simplifies asset management for the average trader. With the basket engine, users can earn yield rewards when staking in different asset baskets.

Paired with the yield engine and intelligence engine, the basket engine can automate De-Fi services like mining, lending, and borrowing on behalf of the user. This simplifies asset management and assists the user in reaching their individual goals.

What is The $REEF Token?

$REEF is the base utility token of the Reef Finance platform. It serves several functions on the platform, including governance, fes, staking, reward systems, and a medium of exchange on and off the platform.

The REEF token allows Reef platform users to take active decision-making roles. They can use it to make decisions, such as voting on different proposals, releasing new features, and adjusting the platform. Users can also pay for operations such as entering and exiting pools, transaction fees, rebalancing, and many other platform activities.

Additionally, by maintaining the network, users are rewarded with REEF tokens. This is possible through the Network Collators, a group in charge of the parachain that helps create new blocks that form the Polkadot Ledger. The REEF token used to reward these network collators is gotten from gas payments made as protocol fees.

$REEF Tokenomics

Source: official website

The REEF token does not have a fixed supply, however, it has a targeted supply of 20 billion REEF. It includes a deflationary burn model that covers the chain’s governance and running costs. The REEF token is to be distributed in the following manner:

• Binance Launchpool: 3% of the token supply
• Lockup/Core nominations: 3.5% of the token supply
• Private Sale Investors: 6% of the token supply
• Seed Round Investors: 8% of the token supply
• Strategic Round Investors: 9% of the token supply
• Reef Foundation: 12.5% of the token supply
• Team Members: 16% of the token supply
• Community reserve fund: 20% of the token supply
• Liquidity/ Ecosystem bootstrap reserves: 22% of the token supply

Is Reef Finance a Good Investment?

Reef combines several De-Fi applications and services to lower the entry barrier to cross-chain trading and investment of digital assets. This brings in new and intermediary users into the ecosystem, leading to growth and development in all sectors.

How to Buy REEF Token

REEF tokens can be purchased on Gate.io and other decentralized exchanges. All you have to do is create a user account, complete the KYC process, and fund the account with whatever amount you want.

Take Action on REEF Token

Trade your favorite crypto pairs from the list below:

• REEF/USDT
• REEF/TRY