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Is Reef Finance (REEF) a Good Investment?

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Reef Good Investment

Decentralized finance has been increasing rapidly in the last few months, with more projects springing up daily. Each of these projects has its own problems that it seeks to solve.

However, the issue of interoperability is still there and has not been solved. This makes users becoming uncomfortable with Defi as they have to interact with all the applications if they want to benefit from all the services that Defi has to offer.

But there is a Defi project known as Reef finance that intends to solve the issue. So, it is not surprising that more and more cryptocurrency investors are asking “is REEF a good investment”. We’re going to try to answer that question in this article.

We will also look into the future REEF price predictions and know if it will be a profitable long and short-term investment. Above all, we will give you a clear view of the cryptocurrency, which will aid your future investment decision regarding the token. Let’s get started.

The Reef is a project that is attempting to build a platform that combines all of the various DeFi applications in one place, easing user’s access to the DeFi ecosystem. With this new DeFi project, it is straightforward to buy, trade, stake, borrow and loan various assets in one platform.

Reef Finance Overview

Cryptocurrency SybmolREEF
Market Cap$177,958,853.50
Circulating Supply12,666,667,338
Total Supply15,934,019,762
All Time High$0.05841
All Time Low$0.003435
Official Websitehttps://reef.finance/

What Does Reef Finance Do?

Reef is a decentralized finance platform created on Polkadot that seeks to deliver cross-chain trading. A yield engine and a smart liquidity aggregator are among the project’s offerings. It allows for the integration of other Defi protocols.  It has been created with Polkadot and shares its security model across the ecosystem while allowing for cross-chain integrations.

The platform also will permit retail investors a way to access Defi without major technical obstacles while at the same time aiding in the decision-making process.

The Reef finance makes the Defi much simpler to access with the ability to diversify a portfolio with a single click. The platform works as a one-stop-shop for Defi projects that users can access without having to walk around various applications, one after another. Users can access different exchanges in its interface, and its smart contract helps the platform to combine the liquidity of these markets.

The platform is presently the first Polkadot project ever launched on Binance Launchpool. The farming started last year December and ended earlier in the year. Halborn audited the protocol. The platform has entered into a lot of partnerships from last year to this year.

Earlier in the year, Reef entered into a partnership with Avalanche blockchain, which will enable users to access Defi applications in the Avalanche ecosystem directly through the Reefs platform. These partnerships and more are capable of boosting investment opportunities in the Decentralized finance platform in the year.

reef-defi

What is REEF Crypto?

REEF is the native governance token of the Reef Chain. It is used for transaction fees and on-chain governance (NPoS and PoS). REEF is an ERC 20 token on Ethereum and BSC network, which will be made convertible 1:1 with Reef chain tokens. It has many functions in the platform, such as; it is used to power the governance mechanism and also as the reward structure of the protocol.

The Reef cryptocurrency can also be used as a medium of exchange, which can be traded in several cryptocurrency exchanges. The core primary uses of the token in the platform are;

  • Staking: The token can be used to stake into various pools to earn interests with preferred APR.
  • Yield distribution: You can choose the pay-out ratio of the profit gotten by the activities in your basket.
  • Governance: The token allows users to vote on different proposals like the unveiling of new features and readjusting specific parameters in the system.
  • Protocol fees: Users can use the REEF cryptocurrency to pay for fees for operations like entering/exiting a basket, reallocation, rebalancing, and other activities in the platform.

There is also an avenue to create REEF tokens by helping to maintain the network. The new feature “Network Collators” holds a full copy of the parachin and develops the new blocks that help to form the Polkadot Ledger. They are compensated with the REEF token in return for helping to maintain the accuracy and reliability of the network.

The Reef network compensates network collators from the gas payments, which are made as protocol fees. Also, it is not all transactions that require payment of network collators. Most transactions that require such include; transaction processing, smart contract deployment, submitting governance proposals, etc.

How Reef Cryptocurrency Works?

Reef Finance pulls liquidity from various sources and puts them to work across different Defi protocols like Compound, Aave, Synthetix, and Uniswap. This does not only help to stabilize liquidity but also avails the users the opportunity to find the best interest rates.

The Reef platform achieves this by using the “Basket Engine” and the “Reef Smart Yield Engine.” This will permit people to earn a yield for every token staked. Also, the Basket Engine merges detailed protocols to allow for easy mining, lending, and borrowing services for Reef Finance users.

What is Reef Smart Yield Engine?

The Reef Smart Yield Engine develops baskets of cryptocurrencies that allow users to invest in. Thus, this creates an avenue for cross-chain investments while earning stable yield rewards. The Smart Yield Engine is a machine learning that is powered by artificial intelligence (AI). It allows users to have complete flexibility over the amount they invest, and the durations tokens are staked. The users’ behavior will determine the steps that the SYE uses to back the baskets of currencies users are invested in.

The core features of the Smart Yield Engine, which enables the RF to become a decentralized, community-governed all-in-one Defi app, include; staking support, liquidity farming, multi-asset support, insurance coverage, and integration compatibility.

Another critical element needed for the Reef Smart Yield Engine to function is the Reef intelligence engine – an off-chain oracle sourcing data for an on-chain Defi proxy smart contract. Its work is to monitor financial data in real-time, including asset price, on-chain data, and liquidity pool activity.

These two engines combine together to develop the Reef basket Engine, which works under the hood rebalancing and allocating assets with yield automation. In clear terms, Reef Finance is personalizing the user experience of Defi while at the same time optimizing user asset allocation.

reef-crypto-explained

 

Will REEF Coin Go Up? REEF Price Prediction

YearPredicted ForecastHigh Forecast
20210.060.08
20220.100.12
20230.160.25
20240.350.5
20250.730.90

Whether Reef will go up is a case of what people think about Reef cryptocurrency and the rate of adoption of its services. Reef chain integrates with Defi from Ethereum, Polkadot, Avalanche, Cosmos, and Binance Smart Chain. It is fast, scalable and has low transaction costs, and doesn’t do any wasteful mining.

The project was built with Polkadot substrate and came with on-chain governance. The platform has impressive features like; Reef staking, solidity, liquidity bridge and is community governed.

When you consider the platform’s various features and the numerous investments in REEF, you will be highly optimistic that its value will likely go up in the future. Also, the experts in the trading view website estimate that the Reef token price will go up in the future.

A critical look at cryptocurrency price prediction websites’ opinions shows that the REEF value will surge in the future too.

For example, Walletinvestor, a popular crypto forecast platform, believes that Reef token price will reach $0.7 in the next 5 years. But from the analysis so far, the Reef coin will be best suitable for long-term investment (like 5 years and above).

However, the numerous investments in the project might trigger a price surge in the short run. So, anything can happen within the network in the year.

REEF/USDT chart

REEF/USDT chart

How Do You Get a Reef Finance Coin?

There are various cryptocurrency exchanges where you can buy Reef crypto. REEF token is listed in Binance in two trading pairs – linking the token with BTC and USDT stablecoin. It is also listed on Bilaxy. It can also be bought from the decentralized Uniswap exchange using Wrapped Ether and USDT. The top exchanges trading the token are; Binance, Huobi Global, FTX, Mexo Exchange, etc.

How to Buy REEF Token

In other to buy the token, follow the steps below;

  1. Go to one of the listed exchanges above that are trading the token and register for an account. You will be required to input your password and username. After registering, log in to your email and confirm your account. After confirming your account, go back to the exchange and log in. You might need to complete the know your customer (KYC) form in line with the rules.
  2. Deposit funds in your account and purchase a cryptocurrency with a trading pair with Reef such as BTC, ETH, etc. Also, you can buy BTC and trade it for the Reef token.
  3. Buy the REEF token. To do that, log in to the exchange and click on the “Markets” or “Exchange” link and search for your desired currency pairing like BTC/REEF, etc. You will see the “Buy” button in green color where you can input the amount you wish to buy or the amount of BTC or ETH to spend. Put in the details and purchase your REEF token. It is effortless and straightforward.

On platforms like Binance, you can also buy REEF cryptocurrency with fiat currency. That is made possible by the partnership between REEF and Binance crypto exchange.

Can I Stake REEF?

There are several ways to stake on the Reef network. We will examine the few:

Staking Reef in the Yield POOL

Users who stake REEF tokens in the Roof pool are rewarded with more REEF tokens. The APY, which is gotten by the Reef pool, comes from three income streams in the Reef ecosystem: the Basket engine, protocol fees, and interest paid by power users borrowing REEF tokens to increase voting power. It is an avenue to earn in the platform.

Yield Distribution

While governance is essential, one of the primary features that most users will be interested in is the ability to stake REEF tokens in liquidity pools to earn yield. Users can receive their rewards in ETH/USDC, or they can receive rewards in REEF tokens for higher rates.

Reef Binance Launchpool farming

The Binance pool allows users to stake their BNB, BUSD, and DOT tokens into separate pools to farm REEF tokens over 30 days. All the user has to do is log into their Binance account, locate the Binance logo, click it, and scroll down and open the launchpad. You will see three Reef liquidity pools, choose the one you wish, and start farming Reef tokens.

The Future of REEF Cryptocurrency

Reef cryptocurrency seeks to solve one of the significant issues in Defi, which is interoperability. The Reef is able to leverage on this advantage to continue building with different L1 protocols, both private and public chains, opening for plenty of liquidity for Reef. The platform also has plans to develop ETFs and automated tickers in the future.

The development of the Reef network has been impressive since its launch. In 2020, the Reef ecosystem entered into over 20 partnerships, with more coming this year.

The notable alliances include those with Kava, Covalent, Matic, Bluzelle, and Chainlink. The Reef’s integration with Binance Access API will open the door for fiat ramp cryptocurrency purchases along with decentralized trading opportunities within their network.

Earlier this year, the Reef ecosystem entered into another partnership with OpenDefi, a platform that works by permitting the tokenization of insured and physically backed real-world assets held by custodians. Users can access a loan in the network by staking their assets and enjoy yield opportunities.

Furthermore, the Reef network also collaborated with another top platform, Manta Network, cross-chain privacy devoted Defi platform and price-stable DEX.

In March, the Reef ecosystem joined forces with Elrond, a high-performance blockchain platform for developing Dapps. In the same March, the Reef network also launched their LIT/REEF staking bond.

Another notable investment also came into the ecosystem when Alameda Research invested $20 million into Reef finance by purchasing Reef tokens in the month.

In the Reef Chain ecosystem, we can also see numerous goals that they have set to achieve in the year. All these show that the platform is poised to change the Defi ecosystem. The various Reef price predictions for the year and beyond also agree that Reef will likely be a good investment in the future.

Is Reef Finance (REEF) Dead?

Reef Finance is not dead.

Their goal of providing an all-rounded DeFi solution is paying off, directly benefiting REEF token holders. That DeFi will continue to exist also means suitable platforms addressing the pain points currently faced by users in competing platforms.

For this reason, Reef Finance is thriving and developers are unyielding, constantly building to improve the protocol.

Notably, Reef Finance eventually aims to work from Polkadot. This interoperable network is already planning to gradually work full-throttle, connecting with other blockchains. As of late July 2021, Reef Finance had launched in Ethereum and the Binance Smart Chain (BSC), leveraging the platform’s Virtual Machine, which is compatible with supported chains.

In addition to blockchain flexibility, Reef Finance is already partnering with key players in the broader DeFi community like Avalanche, Hypersign, and more. It is a net positive for the project and a move that bulwarks REEF token prices, attracting traders and investors, boosting its liquidity and stature.

Why Reef Could Be a Good Investment?

The Reef network offers a friendly environment for all users to get their first-hand experience in the crypto world. The ecosystem is geared towards newcomers as well as current Defi users who find it challenging to keep up with the best investment strategies. The company seeks to solve the issue of high gas fees that are seen on the Ethereum blockchain, which people see as a barrier in the Defi protocol.

In terms of security, the network is secured under the shared security model operated by Polkadot. This doesn’t just make the ecosystem resilient; it can also ensure that upgrades are done without forks. The Reef finance has also established an autonomous organization that REEF token holders will govern.

The ease of using the platform, its numerous partnerships, investments in the network, visions of the team, and security could increase the REEF token adoption rate in the year. This could, in turn, be the reason why Reef could be a good investment in the year.

Already, Reef finance is gaining attention with its numerous partnerships. Adding that up with the surging adoption of cryptocurrency, we could see REEF’s popularity exploding in the future. In your own view, do you think that Reef value could increase in the future?

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Crypto enthusiast since 2016, learning every day about blockchain and the different projects that appear in the crypto-ecosystem. I write about cryptocurrencies because I want to help people get to know this exciting world.

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