Polkadot ecosystem, the Ethereum’s Contender / Reef Finance- Crypto Academy / S4W7 - Homework Post for @allbert
Among issues facing cryptocurrencies is the inability for blockchains to work together. Each Blockchain is a world of it's own and do not interact with the other. For instance, Bitcoin can not work on Etheruem chain and vise versa.
That is where Polkadot and it associate chains comes in- to provide interoperability between block chains.
Polkadot is a multi-chain platform which through it's relay chains and parachains allows for interconnectivity and integration of different Blockchains seamlessly within it's ecosystem. With polkadot, Blockchains do not need to sit in isolation anymore.
Projects and chains built on polkadot carries same characteristics. One of such chains is Reef finance.
In this post I will explore the Reef finance Blockchains and show why it may be a good investment.
WHY REEF FINANCE. (REEF)
Decentralized finance seems the next big thing. The expansion is rapid over its shot history with new projects emerging on the DEFi space. People are now feeling more comfortable with democratic and independent concept of DEFi and Blockchain projects such that are offered by Reef finance.
Reef is a DEFi project built on polkadot -a web 3.0 multi-chain which encourages interoperability among Blockchains. Among the services Reef finance offers include cross-chain trading, yield engine, smart liquidity aggregator and other financial services. The very goal of Reef finance is to make trading simple and diversify DEFi services while making it more accessible.
The fact remains that the ever growing DEFi space is becoming more and more saturated. There are tons of tokens out there, dozens of cryptocurrencies and many investment opportunities. More are still springing up. There becomes a need therefore for simplification of the DEFi process, bringing many opportunities into one ecosystem, especially for new investors so as not to get lost in the crowd. Such a project like that offered by Reef is definitely a project for the future.
PROJECT DISCRIPTION AND REEF PLATFORM.
WHAT IS REEF FINANCE(REEF)?
Reef finance is a decentralized platform built for the facilitation of DEFi projects and services. It is said to be the first of it's kind in providing a cross-chain trading activities incorporating and operating on both centralized and decentralized exchanges, providing traders with best yield rates, and at the same time provide support for DEFi apps.
There is also a provision of what is known as the "Reef yield engine" by Reef finance. With Reef yield engine users can participate in activities like mining, staking, lending and borrowing services etc, all done using artificial intelligence.
Reef finance has transitioned by launching it's own smart contract blockchain known as Reef chain. Reef chain is an EVM (Ethereum virtual machine) compatible chain which hopes to enable Ethereum app developers launch on Reef which offers much features for Dapps, more scalability and lower fees.
REEF PLATFORM.
At the Reef finance website, one will notice some features explaining the entire ecosystem of Reef finance. The simple goal of this Blockchain is to give it's users the the best DEFi products by integrating the best of the most common Blockchains.
The blockchain is built on "substrate", the very source foundation of polkadot. There are more advance functionalities in Reef chain observed in it's platform.
Reef finance image.
Below are few of the items on Reef website.
Reef finance image.
The mainnet feature directs us to reef latest blocks.
Read finance image.
The Reef finance mentions benefits of Reef finance as above Ethereum chain. This can be located in the "documentation" feature.
Reef finance image.
HOW REEF FINANCE FUNCTIONS AND REAL LIFE APPLICATION.
Reef is designed to pull liquidity from varying sources both centralized and Decentralized platforms like Uniswap, Aave, compound and synthetic. These aggregation of liquidity from different sources is how Reef facilitate the cross-chain trading. With these users can find the best possible yield rates for their desired investment and at the same time helps stabilize liquidity in Reef finance network.
Reef finance makes use of what is called the "Reef basket engine". This mechanism contains the "Reef intelligence engine" and the " Reef smart yield engine". It is with this that Reef finance establishes connections with other DEFi platforms.
Numerous digital assets available for users investment are created using the "Reef Smart Yield" which is facilitated through advanced automation process and artificial intelligence.(AI). Functions like community driven governance, decentralization and democratized nature of the ecosystem is made possible through the "Reef Smart Yield"Included. With these mechanism, users in the ecosystem can stake their tokens while maintaining full control.
Reef Smart Yield supports numerous features like staking, liquidity farming, options for multiple assets, integrations and insurance services.
Another mechanism of interest is the "Reef intelligence Engine" which serves as a data source oracle for Reef Finance, obtaining data from on-chain proxy proving users with real-time data like prices, activities in Liquidity pools and live changes. The two engines collaborate simultaneously and enable automation, rebalancing and crypto assets allocation.
The real life application of Reef finance is on the area of staking, yield farming and other financial services.
REEF FINANCE CONSENSUS MECHANISM
As indicated, Reef Finance is built on polkadot and is secured through a shared security model of polkadot network. Reef Finance makes use of nominated proof of stake consensus mechanism (Npos) similar to most of polkadot projects. There is equally a Decentralized autonomous organization which assist in securing the operations of the network.
Just like most proof of stake consensus algorithm, there are validators and nominators of which helps in securing the network.
REEF FUTURE DEVELOPMENT AND ASSOCIATED PROJECTS.
The very goal of Reef finance is to make DEFi more accessible to it's users by bringing the best opportunities to it's platform. Reef has launched it's chain built on polkadot. The network has equally employed Ethereum virtual machine to it's Blockchain Allowing Ethereum users to participate in the ecosystem. Reef is working on integrating other platforms to the network.
Reef has launched it's wallet which is downloadable through it's website.
Future development of reef finance includes venturing into NFTs which is scheduled to happen towards the end of 2021.
Reef has partnered with many industries adding to it's use case.
reef finance image.
REEF FINANCE TOKEN (Reef)
The native cryptocurrency for Reef finance is Reef and it remains the main payment method within it's ecosystem.
The Reef token is price is $0.029858 USD today. It's 24-hour trading volume of $93,288,479 USD.
Market cap of $440,932,908 USD
Reef token is ranked #145 in coin market cap.
There are up to 14,767,552,172 reef token in circulation as at today.
TECHNICAL ANALYSIS.
As at today, reef is down by 5.53% as against yesterday.
Further analysis shows price slide downwards since it's last pick in April 2021.
tradingview image.
From July to this October reef price has remained flat. The consolidation period seems to be coming to end as the price of Reef seems to be gaining a little this week. Consolidation period is a good time to buy.
Using Bollinger band reef is rising from it's overbought position.
tradingview image
WHERE TO BUY REEF.
Reef can be bought on following exchanges like Binance, Huobi Global, Mandala Exchange, FTX, and CoinTiger.
In this exercise, I bought the reef token using binance smart chain.
I already have USDT worth $27 usd.
Stage 1:
I went to trades,
binance app image.
stage 2.
1: Then I Located "spot" trade because I want to buy immediately.
2: Next, I select the crypto pair reefusdt
3: next I chose the "buy" option
4: I selected the markets so that the purchase could complete immediately.
5: Next I have to choose the percentage quantity to "buy". I chose 100% because I am investing all.
7: I clicked the buy button and that's all.
See result below
binance app image.
CONCLUSION.
Polkadot ecosystem offers interoperability between blockcahains, enabling them to interact with each other rather than sitting in isolation.
Reef is built on polkadot which makes it easy to connect with different Blockchains. Reef as a multi-chain DEFi project interacts with both centralized and decentralized platforms to provide it's users with the best DEFi opportunities.
Projects such as reef holds potential for the future.
USE OF IMAGES
photos taken from reef platform
source:
Images drawn from tradingview
Binance app images.