Reef is a smart liquidity aggregator and yield engine that enables trading with access to liquidity from both CEXs and DEXs while offering smart lending, borrowing, staking, mining through AI driven personalized Reef Yield Engine.
What can you do with the Reef token?
- Governance: vote on different proposals such as releasing new features and re-adjusting certain parameters in the system
- Protocol fees: pay fees for operations such as entering/exiting a the basket, reallocation, rebalancing and other activities
- Staking: stake into various pools to earn interests with preferred APR;
- Yield Distribution: choose the payout ratio of the profit generated by the activities in your basket
Why did Reef build on Polkadot?
Polkadot’s interoperability layer allows us to communicate with all the blockchains and still achieve high throughput. Additionally, we inherit their security model, which means we get to be highly resilient, can do forkless upgrades while still being able to maintain stable on-chain governance.
We are fully compatible with Ethereum and the current DeFi ecosystem, but we believe in order to innovate and take the landscape to the next level, we have to take it cross-chain, and through Polkadot we are able to achieve that.
Besides this, Polkadot’s parachain communication (XCMP) and bridging mechanism, combined with the possibility to run solidity code on parachains such as Plasm and Moonbeam, use native Ethereum addresses and huge ecosystem support (Web3, Parity) were the reasons why we chose to build on Polkadot. Reef being cross-chain gives us flexibility, which means we are able to shift our product and features based on where the users are and what the users want/need in the future.
Where does the APY from staking into the Reef pool come from?
The APY generated by the Reef pool comes from the income streams generated by the Reef’s ecosystem. We currently have 3 income streams: Basket engine, protocol fees and interest paid by power users who borrow tokens from the Reef pool in order to increase their voting power.
All the 3 income streams are currently flowing in the Reef pool. In the future, through voting, we plan to introduce Reef Treasury which will be the recipient of the income streams, and the DAO can further decide how to allocate the funds (eg: grants, buybacks, etc.)
Besides the APY from the Reef Pool, the users will earn yields generated by the smart yield farming engine which gives them exposure to different DeFi activities and tokens from multiple ecosystems.