304 North Cardinal St.
Dorchester Center, MA 02124
Reef has only been in operation for nine months, so it is still too early to say whether the initiative will be successful in the long run. Future success will largely be determined by developer acceptance and whether developers decide to construct on the REEF-20 chain.
One defence of Reef is that most individuals stick with their preferred chain and hardly ever need to venture off-chain. For instance, Ethereum users are more likely to stick with the ERC-20 ecosystem than to switch to Solana or BSC. Before cross-chain services like Reef become widely used, DeFi still needs to be used on a broader scale.
NFT baskets and a mobile app, both of which are next developments for Reef, are expected to go live in
The decentralised finance (DeFi) industry is expanding rapidly, and new blockchain innovations appear daily. One thing that all Ethereum developers agree on is that it should be simplified for increased adoption. There are currently over 350,000 tokens produced on Ethereum alone. DApps have complicated user interfaces that can only be used by tech-savvy people.
A project built on Polkadot called Reef Finance (REEF) makes an attempt to make this simpler. Including centralised exchanges (CEXs) and decentralised exchanges, Reef is the first cross-chain cryptocurrency operating system in DeFi. It enables the transfer of liquidity and tokens between various blockchains (DEXs). The Reef token serves as the native currency of the Reef ecosystem.
Layer-1 (native cryptocurrencies) and Layer-2 are the two categories of cryptocurrencies (tokens built on native infrastructure). Tokens can be developed on the base blockchain of a native coin. Developers can create their own tokens on the blockchains of native cryptocurrencies like Bitcoin and Ethereum.
Chainlink, a token based on Ethereum, is an illustration of a token constructed on top of a native cryptocurrency.
The problem is that tokens and liquidity created on native blockchains are restricted to those particular blockchains. For instance, a CEX is required if you wish to transfer USDT from one decentralised blockchain, like Ethereum, to another, like Avalanche. Reef seeks to remedy this by developing a platform that functions as an intermediary and collects tokens and liquidity from several blockchains.
For effective liquidity transfers, Reef is the first aggregator to link centralised and decentralised exchanges. It works with a variety of decentralised blockchain platforms, such as:
The majority of DeFi’s liquidity is governed by these blockchains. The Reef chain allows developers to transfer their liquidity between other blockchains. Using the Solidity programming language, developers can also create and deploy their own unique coins on the Reef blockchain.
Reef aims to integrate blockchains into a single platform, simplify DeFi, and make it available to everyone. Reef, according to its founder Denko Mancheski, would make DeFi more approachable by enabling anyone to make money through trading tokens created on various blockchains without worrying about convertibility.
Major DeFi wallets like MetaMask, WalletConnect, Torus, and WalletLink are compatible with the Reef platform. Users that connect their wallet have access to a list of all the assets they own along with their current value. They can move them to a different blockchain or convert them into Reef tokens.
The principal benefits of Reef Finance are:
suitable for use with DEXs and CEXs
able to work with prominent native blockchains and their coins
Reef trading platform and income generator
interoperability of smart contracts with REEF-20 assets
partnerships with the biggest exchanges and blockchain projects throughout the world
completely decentralised with alternatives for governance and staking
By providing DEX and CEX compatibility, Reef separates out from the competition. Additionally, the technology exchanges currency between independent blockchains. By converting these assets to the Reef token on Reef’s platform, with just minimal costs, the process is sped up.
Reef launched on December 29th, 2020, and announced a $3.9M Series-A investment round in September 2020. It was supported by organisations like NGC Ventures, AU21 Capital, QCP Capita, Kenetic Capital, Amplifi, and the Krypital Group and received the greatest series funding of any Polkadot-based project.
One of Ethereum’s key rivals, Polkadot, attempts to fix the fundamental problems with the ERC network, such its poor speeds and high transaction prices. Gavin Wood, a co-founder of Ethereum who is based in Berlin, Germany, created Polkadot. With a $30 billion market size and a $30 price, it is now the ninth-largest cryptocurrency.
The “parachains” that make up the Polkadot blockchain are the basis on which Polkadot operates. Reef is built on Polkadot and has a parachain that benefits from Polkadot’s proof-of-stake consensus, EVM compatibility, scalability, libp2p networking, and world-class security. Parachain slots on Polkadot are rare and acquired via a process known as a “parachain auction.”
Users and developers of Reef benefit from cheap transaction costs and EVM compatibility, which makes it simple to move their projects from the ERC-20 ecosystem to the REEF-20 ecosystem. The fact that parachains function independently within the Polkadot ecosystem makes transactions speedier even during busy periods.
The Reef platform is entirely decentralised and composed of various parts that cooperate with one another. Additionally, it is non-custodial, which means that the user alone owns the money that is moved to the Reef ecosystem and that the developers have no access to the user’s private keys or money.
Reef Finance is completely compatible with smart contracts, and programmers can use Solidity to create unique REEF-20 coins on the platform. Since the code is the same on both Ethereum and Solidity, ERC-20 applications can be immediately converted to REEF-20. Projects written on Solidity 0.6 and later can use Reef.
Developers have the choice to move their Polkadot, BSC, Avalanche, and Cosmos projects across. It takes only a few clicks to deploy a REEF-20 token. Due to the fact that Reef is based on Polkadot, its DeFi technology is unique from that of other blockchains. A few essential tools must be replaced by developers who intend to deploy on REEF-20.
Only the Polkadot Extension is compatible with REEF-20 tokens; MetaMask is incompatible. All DOT-based tokens use the Polkadot Extension plug-in and may be traded on websites like Polkaswap.
Reef also offers specialised tools like Reef Remix (a substitute for ETH Remix), Reef Hardhat (a substitute for Truffle), and Reefscan (alternative to Etherscan). The software is open source and free to use, with the source code available on Github.
The REEF-native chain’s currency is the Reef token, which is also used for transaction fees, governance, and the exchange of liquidity. The Reef cryptocurrency has a maximum quantity of 20 billion tokens and a circulating supply of 16 billion tokens. The majority of Reef tokens are exchanged on decentralised platforms like Ethereum and BSC.
Reef’s platform allows for liquidity transfers between several blockchains, which is the core use of the coin. Additionally, holders can vote on matters like features and collaborations as well as participate in the network’s governance structure.
Holders of Large Reef tokens can help maintain the network. They add new blocks to the Polkadot Ledger and are referred to as “Network Collaborators.” Their APR changes depending on the length of time and the size of the locked tokens.
Reef has a market capitalization of $250 million and is now trading at $0.018. The price reached an all-time high of $0.057 in March 2021 and a record low of $0.006 in January 2021. Since the coin was first introduced in December 2020, the price has stayed largely stable.
The token had a private sale in September 2020 where 4.2 billion Reef (20% of the supply) were sold privately at an average price of $0.00095, benefiting early investors the most. Private investors received a 27 return on their initial investment when the token launched, reaching $0.0279 on opening day.
The whole cryptocurrency industry was focused on Reef because it was one of the most anticipated launches of the year. Despite the launch’s success, the price immediately fell from its peak to $0.02 and, on average, hovered between $0.01-0.02.
Reef’s price skyrocketed to an all-time high of $0.0574 in March 2021, when the crypto bull market really got going. The currency is currently fallen around 70% from its peak.
Reef Finance has changed the DeFi environment with its new capabilities, and it has minimal rivalry in the cross-chain market. The crypto market’s reaction to the offering will, however, determine its outlook for the future. Early Reef investors will gain a lot from holding this coin if Reef develops a significant user base.
Reef is positioned to become one of the primary intermediary services connecting various blockchain networks, therefore investors who bet on DeFi becoming significant over the next ten years may find investing in Reef profitable. They can also choose new features and take part in Reef’s governance system.