Reef Finance is the first cross-chain DeFi operating system powered by Polkadot. In the ecosystem there is
- DeFi financial infrastructures.
- Exchange and trading market.
Reef obtain liquidity from from both CEXs DEXs. Liquidity problem include: CEXs isolated solos and prone to hacks.
DEXs deals with unstable liquidity which is slow and hard to use due to ethereum's network.
Reef is a smart liquidity aggregator and yield engine that ensures trading with access to liquidity from both CEXs and DEXs while offering smart lending, borrowing, stacking, mining through AI driven personalized Reef engine.
Problem Facing DeFi
Yield Problem
Gas fee is expensive and not being able to keep up with the best strategies.
Fragmentation Problem
Fragmentation is associated with DeFi activities and there is also increased complexities.
What can be done with Reef Token.
Governance: can be used to vote on different proposals relating to new features and readjustment of certain parameter in the system.
Protocol Fee: Fees are paid for operation such as reallocation, rebalancing and other activities.
Staking: With preferred applications, you can stake into pools to earn interests.
Yield Distribution: Payout ratio can be done from profit generated by the activities in your basket.
Polkadot ensures that Reef Finance is secured under the Polkadots share security model. It ensures high resilience and forkless upgrade. There is also decentralized network controlled by Reef Token holders via DAO to achieve a transparent better future based on truth and less trust.
Reef was built on Polkadot is because in interoperability layer, you are allowed to communicate with all the blockchains and achieve high. Under security model, Polkadot is highly resilient and can do forkless upgrades and still be able to maintain stable on-chain governance. Polkadot has compatibility with ethereum and the current defi ecosystem wish to take the landscope to the next level and can be done cross-chain. On reef, products and features based on where the users are, want/need can be shifted.