A Full Review Of The REEF Token
Although many analysts forecast the end of Defi after the summer’s “bubble”, this cryptocurrency sector has not only survived but continues to grow. In 2020, we saw many success projects and much more high-potential startups. Cross-chaining platform Reef Finance is one of them, and its REEF token is of interest to many investors and traders. What is this token, what is it for, and what are the chances?
What is a REEF?
REEF is a native token platform of decentralized finance – Reef Finance, whose creators plan to build a multifunctional marketplace for Defi. Reef Finance is a new project that released on IEO in 2020 to provide the society several tools for DeFi:
- Farming pools (baskets) – are something similar to the Yearn.Finance vault, which automatically generates a strategy of investing certain tokens on various DeFi platforms to guarantee the highest profit on the market. The basket engine (now unviable), will provide for the creation of the strategy in the “baskets”. The advantage of the Reef product over Yearn is that it is able to combine in baskets coin from several blockchain, not limited by Ethereum.
- Intelligent Investment management – is a useful interface for the fast formation and balancing of the cryptoinvestment portfolio. The module is designed to support both manual portfolio management and AI balancing with automatically changing structure of the portfolio and recommendations. It is really attractive, especially for passive investors, who use HODL strategy.
- The liquidity aggregator from CEX and DEX – centralized and decentralized exchanges are fragmented and disconnected sectors of the market for now. Each type of platform has its pros and cons, but as Defi-marketplace Reef Finance strives to keep all the advantages of decentralized exchanges and sometimes use high liquidity from the centralized.
The developers have positioned Reef Finance as a Defi aggregator, which should collect in one place all the most useful and attractive products of decentralized finance and wrap them in a simple and understandable shell. At the finish, it should be like “press enter to yearn”.
Base for network Reef Finance its Polkadot blockchain, because its a safe and scalable version with the ability to work with parachaines. Reef Finance uses a common Polkadot security protocol and can implement updates to its network without hardforks.
The REEF coin is a Reef Finance utility token that use for several functions:
- Payment of commissions and fees;
- voting rights;
Token REEF has also helped the startup attract investment to implement the first Roadmap goal for partnerships, official website development, and basic infrastructure. Strategic, “seeding” and private sales accounted for about 20% of the circulating offer and another 12% used for the development of the ecosystem:
Speaking of the supply, it is planned to limit the total supply of 20,000,000 tokens, but at the moment the basic services of Reef Finance are not working, so commissions are not paid and the profit is zero. Only 3,965 900 953 REEF tokens are in circulation – it’s a small part about 20% of the maximum supply.
For now, these coins interest only traders and long-term holders, because the practical function on the platform is almost non-existent to time when promised products and tools will start working. According to the roadmap of the project on the official site, the situation should change to the end of 2021. For the first three quarters developers planned to launch storage, yield farming and other interesting chips for “farmers”.
REEF Token founder and community
The founder of the Reef Finance project – macedonian Denko Mancheski. Motivation of this man is almost the same as that of the creator of Yearn.Finance – make Defi accessible not only to those who, as say Cronier, “study at private school”. That means to simplify the use of decentralized finance, allowing to earn without monitoring the profitability of many protocols, multiple exchanges and transactions to dozens pools for the mining of double and triple liquidity through various blockchains and platforms.
Mancheski has experience as the technical director of Adel and Viewly. More about the project team developers it’s unknown. But there is founded the DAO to manage the project, and the developers, who reserved for themselves 16% of the token for greater motivation. Who and how is developing Reef Finance is a mystery for the moment.
As reported, the platform also has communities in a few countries (mostly Asian), including Korea, China, Vietnam, and the US. From there the Reef will begin its work and will start to reach new markets as products and services become more popular.
DeFi tokens do not use PoW or PoS mining, so it is possible to get REEF tokens by using farming. Steaking in the ReefFinance pool to provide liquidity will produce new coins as a reward depending on the “frozen” amount.
The pool for distribution among the steakers includes not only the mined tokens, but also the payment of transaction fees and interest from REEF holders, who use the coin to increase the number of votes. In the future, it is planned to create a full-fledged “treasury” to accumulate profits that the community will dispose of.
Actually, the principle of mining is simple: the more money the owner retains, the more new coins he receives in the distribution of reward. This mechanism is likely to work until the coin reaches its emission limit, and then Reef Finance will have to reconfigure its tokenomics or expand its overall supply.
Where to buy a cryptocurrency: available exchanges
We are constantly monitoring the development of the Reef Finance platform and as soon as the first REEF workflow services are available on the platform, the token will be added to Binaryx. This means that our users will be able to freely exchange a prospective and multifunctional coin in crypto-crypto and crypto-fiat formats.
Binaryx management expects a full launch of the platform in order not to turn REEF trading into pointless speculative bidding. We want to provide customers with a useful and multifunctional asset as well as the infrastructure for its storage and exchange.
In addition, Binaryx guarantees high liquidity and allows customers to buy tokens at the current price in one click – without registering a side wallet and waiting for order execution. The first trading pairs will be REEF/Ethereum and REEF/USDT.
As mentioned, the token REEF is based on Polkadot, so its main feature is the crosschain format. Two technical standards are currently available:
- BEP-20 – Working for Binance Smart Chain;
- ERC-20 is a classic Ethereum blockchain format.
This means that all compatible wallets, including apparat wallets and light clients, can be used to store REEF. In addition, the built-in wallet of the Binaryx exchange will be available after listing.
The number of wallets supported will increase as the Reef Finance infrastructure develops, because the coin can be transferred to other blockchains.. For example, according to the latest information, the developers have transferred the ecosystem to the blockchain Tron, whose creator is not interested to stay away from DeFi. Some other networks that are still being created or tested may also be useful for REEF.
Forecast of REEF token
REEF is a very “young” utility token of platform that plans to outrun Defi aggregators like Yearn. Until the main tools are launched on the platform, the REEF functionality (and value) is relatively low and will be revealed as the service develops. At the time of writing the price chart of the coin is as looks like that:
The chart is generally correlated with traded volumes and investor activity in the cryptocurrency market, so REEF follows a market-wide trend. For Croinmarketcap’s capitalization rating, token ranks only 180, which also indicates that it is undervalued.
To navigate how Reef Finance will be rising, you can take a quick look at this roadmap:
As you see, the deployment of key features such as the Basket Engine and intelligent asset management is planned only in 2021, and if the roadmap is completed on time, REEF could increase substantially before the end of the year. So buy a token now – mean make an early investment.
It does not seem that REEF will break YFI price records, given the difference in the max supply, but its value, including voting rights, steaking and profitable farming will increase.
Token REEF is the heart and core of the Reef Finance platform, which has ambitious goals and attempts at Andre Kroner’s laurels. The owners of REEF will be able to take a part in the life of the platform and earn money on mining liquidity or steaking. Token will also be required to pay certain fees.
After the network is fully started, only REEF owners will have access to the intellectual management of the investments and storage facilities for liquidity mihing. Because fees in REEF will have to be paid for all of this. In addition, as site users grow, voting rights of the REEF holders will become more valuable.
The technical and economic potential of REEF has not yet been realized, and if the project continues to evolve according to the Roadmap plan, the token ecosystem, its functionality and value will increase substantially in the future. For now, an asset can be considered as a profitable investment if you believe in the development team and the intime implementation of the road map.