The advent of the blockchain technology soon spiraled into finance. While the blockchain technology is relevant to many fields and industries, the financial ecosystem was what the technology was originally aimed at. There was – is – a pressing need of transparency in the financial markets as they are usually dominated by corporations that exploit the end-user. The decentralized finance rose to popularity as a result of the gaps that exist in the traditional financial ecosystems. Reef is one such DeFi project that aims to make finance more decentralized, transparent and accessible. In this guide, we will study what the project is and how is it achieving its goal.
What is Reef?
Decentralized finance, while an interesting proposition, has its challenges of its own. Liquidity fragmentation as well as limited liquidity is along with low usage capabilities are some of the challenges that existing DeFi projects face. However, Reef aims to solve all of these problems.
Reef is a protocol for decentralized finance based on the blockchain of Polkadot. It acts as a liquidity aggregator and a multi-chain yield protocol. Being a multi-chain engine, it allows the integration of liquidity. Moreover, Reef aims to be the platform for all your DeFi woes. It offers a plethora of services and acts as the one-stop shop for DeFi needs.
Being based on Polkadot also has a multitude of advantages. While the major chunk of DeFi projects is based on Ethereum, the blockchain is not suited for a mass adoption with a lot of scalability issues, Polkadot, on the other hand, does not have any of the issues of Ethereum. Polkadot offers greater scalability, faster transactions and lower costs.
Future outlook
There has been a lot of developments going on in the platform. The mainnet chain of Reef went live towards the end of July. At the same time, the network also entered into a strategic partnership with Klever and Elk Finance. The quarter update showed phenomenal growth with the social media community growing to 200k followers while the Discord community grew by four-folds. A collaboration with CoinFantasy is brining NFT fantasy gaming to Reef’s platform. Moreover, another partnership with Parsiq has also enabled many real world use-cases for Reef.
At the time of writing, Reef stands at a price level of $0.021. The price has been declining in the daily timeframe; however, the network is bustling on the development front which gives it a bullish future outlook. Digital Coin Price predicts the year-ending price for the token to be at $0.033 while the price is expected to reach $0.076 by 2026.
