We’ll get to know Reef and its ecosystem through this Reef review to understand its functionality better. Also, we’ll study the REEF token and how it supports the Reef protocol.

As the world of cryptocurrency becomes more popular, so was the need for transparency and less control on transactions. In addition, the arrival of decentralized finance (Defi) exchanges and protocols give leverage for transactions without an intermediary.

However, the Defi protocols bring challenges along with them. For example, liquidity fragmentation, limitation in learning, and usage capacity are just the tip of the iceberg.

Users have problems moving to several decentralized applications to access some products and services according to their needs. So you can say that the use of Defi protocols still has the problem of getting greater adoption in crypto services.

This stress brings a reduction in the number of users on these applications. All these were before the advent of Reef.

The operations of Reef unite the several services of all blockchains in a single platform. The Defi users can now conveniently make their transactions without running on multiple platforms. So with a single platform, you can stake, buy, trade, farm, and even manage your digital assets portfolio seamlessly.

What is Reef?

The Reef is a Defi protocol that runs on the Polkadot blockchain as a liquidity aggregator and multi-chain yield engine. Reef gives users access to most of the Defi services on several projects just in a single platform.

Thus, Reef is like a One-Stop-Shop for you to get cryptocurrency products and services without visiting other Defi applications. Through its interface, you can easily access other DEX via smart contracts.

The protocol gives non-stop availability of liquidity by tapping from other sources. It makes the aggregate through the use of smart contracts.

So, there no third-party control in the flow. Also, as a yield engine, the protocol very practical in its functions. It makes a connection between crypto trades with several liquidity pools from exchanges and other Defi ecosystems.

The reef is based in Polkadot. This gives you a faster transaction rate than on Ethereum. Also, running on Polkadot makes the protocol more affordable to the users. This is because you won’t face the high transaction fees obtainable in Ethereum through the use of ETH 2.0.

The platform is non-custodial, which lifts the trouble of private keys from users. Being Polkadot-based offers an extra security grid on the protocol from attacks. There’s a very low possibility of losing money from the platform.

The protocol is the first Polkadot project to be launched on Binance Launchpool. The reef has gained much popularity by having cross-chain integrations with some Defi projects. In addition, the platform has an AI-driven management function for cryptocurrency available for beginners.

This service synchronizes with the possible risk categories that match the financial objectives of a user.  You can also customize this service.

Reef History

The CEO and co-founder, Denko Mancheski, established Reef in 2019. He and the other developers launched the protocol on Polkadot’s blockchain in September 2020.

A subsequent launch on Binance Launchpool followed in December 2020. This Binance launching creates the availability of the project on the Binance Smart Chain.

The protocol made some processes and now integrates with several other projects based on Polkadot and Ethereum blockchains. Thus, Reef has opened a platform for interoperability between Defi projects and applications for users through its several integrations.

Why Polkadot?

Polkadot is a blockchain or exchange that permits the transfer of arbitrary tokens and data through other blockchains. Usually referred to as the ‘Blockchain of Blockchains,’ Polkadot stands as the fourth largest crypto protocol by market capitalization.

The co-founder of Ethereum, Dr. Gavin Woods, founded Polkadot. This project is an ecosystem that uses the shared network of security and resources of the Polkadot framework.

The entire ecosystem of Polkadot rotates on the Relay Chain. It ensures cross-chain interoperability and security for the Polkadot network. Also, the parathreads and parachains are connected to the Relay Chain. While the parachains are larger, the parathreads are smaller blockchains.

These blockchains can create unique functionalities, governance structures, and tokens. Also, through Polkadot, developers make connections to other blockchains like Bitcoin and Ethereum.

By running on Polkadot, Reef gives its users leverage on transaction speed and cost. This’s because most crypto users know that the huge traffic on the Ethereum blockchain results in long transaction times and high fees.

However, by running on the Polkadot blockchain, Reef scales through these issues. There’s no network congestion, thanks to parachain’s independence. The blockchain also enables Reef cross-chain interoperability using the ‘Bridge’ protocol. So Reef can present a single interface for its users by aggregating the services and products from other networks.

Also, by sharing Polkadot operated security model, the Reef network has a strong security platform. This enables upgrades without forks and makes the network more pliable. The REEF token holders govern the network’s DAO (decentralized autonomous organization).

What Makes Reef Unique?

Reef profits both beginners and the old users of decentralized finance. The network comes as a help to combat every difficulty in keeping up with outstanding investment strategies. Before the advent of Reef, some Defi protocols are almost ‘unusable’ due to high fees on the Ethereum blockchain. Reef then steps in to address this high fee.

Also, one of the unique attributes of Reef is its easy integration with other Defi protocols and projects for interoperability. Just with a single click, a user can enter or exit his chosen position. So the network as a liquidity aggregator eliminates the stress in managing tokens for the liquidity pool.

Reef supports decentralized finance protocols on several blockchains being built on Polkadot. Some of the blockchains include Moonbean, Plasma, Ethereum, Avalanche, and the Binance Smart Chain.

So without multiple accounts, users can easily access different platforms just from the Reef network. This saves the users the problem of keeping track of numerous passwords and usernames for multiple accounts.

Three Major Features or Components of Reef

Some of the characteristics or features Reef include:

Liquidity Aggregator

Are you wondering why you should use Reef among the several decentralized finance exchanges and protocols? One of such outstanding reasons for sticking with Reef is because it globally aggregates liquidity.

Not only does the protocol brings a connection to DEXs, but it also connects even some centralized exchanges. So on the platform, users can conveniently trade their cryptocurrencies through liquidity pools trapped from both decentralized and centralized exchanges.

Also, Reef is an autonomous protocol that is compatible with several Defi protocols. So through cross-chain integration, the platform gives its users a wide range of services in a single platform.

As a liquidity aggregator, Reef offers the following to its users:

  • DEX liquidity
  • CEX liquidity
  • Decentralized Swap
  • Low transaction fees
  • High-efficiency

Smart Yield Farming Engine

Reef has an AI and machine learning function that controls its smart Yielding farming feature. Through its recent growth as a Defi yield engine, Reef attracts top players such as Rari Capital, Zapper, etc. In addition, reef allows fund managers and retail investors easy access into the Defi ecosystem through yield farming.

The Reef has several available assets such as stable coins, hybrid tokens, and synthetic tokens. These assets have both lending and borrowing autonomous capabilities. They also get support from the APR that the DAO voting controls. Users’ liquidity assets provide the needed collaterals for lending on the Reef platform.

Also, as the top yield in liquidity farming, Reef clears out the Defi ecosystem. This gives the users of the platform the ease they need. Furthermore, by integrating with some Defi insurance protocols like Opyn, Nexus, Etherisc, etc., users of the platform get financial insurance services.

As a yield engine, Reef offers the following features to its users:

  • Smart routing
  • strategy

Smart Asset Management

This feature is a complement to both the liquidity and yield farming aggregating features of Reef. Smart asset management of the protocol puts the users to be in control of the assets instead. Thus, the assets are not stored on the platform.

Also, as there is a need for a constant rebalancing of asset allocation on Defi markets due to innovative changes, users rebalance through adjusting their asset allocations through the Reef platform.

The adjustment is between the users’ baskets in Defi products through a UI from their computers or mobile device. For easy decision takings, users can lean on the recommendations from the AI engine.

The REEF Token

The native and utility token for Reef is the REEF. In September 2020, through a private sale, the token generated $3.9 million at $0.0009 and later $0.00125 per token. The token continued in an upward surge to $0.02792 in December 2020.

Reef Review: Know All About and Its Ecosystem With This In-Depth Guide

Image Credit: CoinMarketCap

REEF has a dualism existence on both the BSC and Ethereum blockchains as BEP-20 and ERC-20, respectively. The total number of circulating REEF tokens is approximately 4.2 billion.

The Binance Smart chain has about 2.4 billion tokens, while the Ethereum blockchain has 1.8 tokens. The maximum supply limit for REEF is 20 billion. The circulating supply is just 15% of the max supply. This will sufficiently create inflation for the token.

REEF has the following function in the Reef network:

Governance

REEF is a governance token for the Reef ecosystem. The token holders can affect the governance in the following ways.

  • Holders can vote on system releases for new products.
  • Voting on proposals.
  • Voting on readjustment on the system’s parameters running in the protocol.
  • Altering the structure of asset brackets.
  • Changing liquidity pool attributes.
  • Adjusting the interest rates on the platform.
  • Modifying a DAO’s structure, etc.

Protocol fees

The REEF token is used to make fee payments on some system operations. Some of the operations include rebalancing, reallocation of assets, entering or exiting a basket, etc.

Staking

Users can earn interest by staking the tokens on their hold in several liquidity pools. These earning are with diverse rates of APY (annual percentage yield).

Yield Distribution

Users also utilize the REEF token to decide the profit payout ratio that their baskets generate.

Where to Buy REEF Tokens?

REEF tokens recently have gained popularity in the world of cryptocurrency. You can buy the tokens from any exchange where they are listed. Such exchanges include Binance, Capital.com, Huobi Global, Gate.io, FTX, etc.

Most of these exchanges accommodate buying the tokens with fiat currencies such as USD, CAD, EUR, GBP, AUD, etc. You can also make your purchase by trading other digital coins for REEF tokens. Though trading may seem difficult for beginners, it’s a cheaper means to buy the tokens.

Storing REEF Tokens

The REEF tokens exit as both BEP-20 and ERC-20 tokens. You can conveniently store the token in any wallet which is either ERC-20 or BEP-20 compatible.

Some ERC-20 compatible wallets include Ledger Nano S,  Ledger Nano X, Trezor One, MetaMask, Trust Wallet, etc.

Some of the BEP-20 compatible wallets include SafePal, Math wallet, Unstoppable, Trust wallet, TokenPocket, etc.

Though you can store your tokens on exchanges after buying, it’s always due risky due to their high insecurity. The use of hardware wallets gives you a more secure means of storage. Also, you’ll use hardware wallets if you’re to hold the tokens for the long term or store them for value.

Reef Partnerships

Right after its launching in September 2020, Reef has med a tremendous growth. The network has established several partnerships with many large firms and protocols. Through these partnerships, Reef has been able to get more exposure which attracted more potential users. Some of the partnerships include:

  • Polkadot – As Reef’s native network, Polkadot enables Reef to interact with other chains seamlessly. In cases of congestion in those chains, Polkadot helps the Reef network will scale through.
  • Binance – Through its brokerage integration, Binance enables fiat on the ramp for buying digital assets within Reef. In addition, the blockchain empowers opportunities in Reef for decentralized trading. Also, Binance featured the first Launchpool staking for the network’s REEF tokens.
  • Chainlink – As of the best oracles of our times, Chainlink offers Reef a great quality-price feeds that the project uses to leverage.
  • OpenDefi – Custodians who hold insured assets or physically backed assets can tokenize them on OpenDefi. Through its partnership, Reef users can stake their assets to get instant loans. They can also receive yield opportunities through their staking.
  • Unifi Protocol – by creating and linking multi-chain Defi Marketplaces, Unifi powers cross-chain trading. This enables Reef users to earn interest as they transact.
  • Equilibrium – Equilibrium facilitates the liquidity aggregation for Reef. This is Equilibrium as a cross-chain money market joins lending pools and synthetic asset generation.
  • Manta Network – Manta is a price-stable and cross-chain Defi network that gathers liquidity. It enables Reef users to access unlimited liquidity pools. This confirms Reef’s feature as a liquidity aggregator.
  • OpenOcean – This trading platform, through its initiative on ‘Zero gas fee,’ made a tremendous impact on Reef traders. The traders received a refund for the fees they spend for trading on REEF tokens.
  • Kava – Kava is a project that runs on the Cosmos ecosystem that allows interoperability. Kava boast of yield availability within its platform. Through interoperability Kava allows Reef users to tap into its yield opportunities.

Roadmap

The Reef team constantly updates the official Roadmap of the protocol. To get more information about the protocol, you should visit the official Medium page of Reef.

Through qualitative plans and establishment from the company, Reef has accomplished several successes after its launch.

Some of the accomplished Roadmap by Reef  include the following:

  • Updated Landing Page.
  • Legal Structure Setup.
  • Ethereum Defi protocol Integrations.
  • Defi Classification Indexer.
  • Reef Litepaper.
  • Reef Aggregation Layer.
  • Binance Launchpool.
  • Reef Farms.
  • Analytical Engine Indexers.

Reef Review Conclusion

With the numerous innovations in the Defi ecosystem, users of digital assets have a lot in their hands to play with.

Reef uniqueness has tackled the limitations of complexity and fragmentation in Defi protocols. Irrespective of a user’s expertise or experience, the Reef network gives maximum satisfaction to people who support decentralized finance. Through its interoperability, Reef presents just a single platform for you.

Through this platform, you can experience the goodness of Defi innovations available in different protocols. From Reef, you can conveniently buy, trade, stake, lend and borrow your digital assets. This put Reef as your ‘One-Stop-Shop’ protocol in the Defi ecosystem.

Reef’s team is experienced, coming from different backgrounds such as engineering, finance, and cryptocurrency.

The company is progressively working to ensure that the network remains sustainable. Also, it’s planning on more surprising and interesting new development and will keep pushing the protocol at the forefront in the Defi ecosystem.

We expect Reef not to fade its operation and services to its users and the entire Defi community.

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