Reef Finance is a brand new product powered by Polkadot. It is basically a financial ecosystem in which passive investors have more avenues of gaining access to cryptocurrencies.
The Reef Baskets V1 is commonly termed as the ‘Ethereum-based structure for applying the set of DeFi tokens’ along with other crypto assets. The operations are conducted in a similar way to exchange the funds which are traded, which are most common and popular among the institutional managers and investors who have been doing it traditionally.
The users of Reef baskets can use various DeFi tokens simultaneously. Reef Finance explains its approach as the quantitative strategy, which reduces the ability of decision-makers to only two factors. The two factors are; the amount of money they want to invest and the proportion of risk they are agreed to take.
The version of Reef Basket, which is available as of now, is only for Ethereum, whereas the ones scheduled for arrival include the Polkadot-based Reef Chains.
The CEO of Reef Finance, Denko Mancheski, said that the Reef Basket provides a feasible choice to the investors, as they hardly have time to look into the details of the Defi projects coming up in the market. He explained:
“Reef Baskets are the ideal tool for the passive investor who may not wish to spend time researching and curating his own portfolio of tokens. [...] Picking the winner is objectively hard in DeFi, and Reef Baskets combined with the Smart Engine simplifies the investment process.”
In the blockchain industry, the hottest verticals include decentralized finances. Until now, 274 cryptocurrencies are enumerated in the DeFi category of the CoinMarketCap. The market capitalization of the current projects is around $98 billion. It is expected that in the coming year, the figure would increase because more projects would come up online.
In March, Reef Finance received $20 million as the strategic investment from Alameda Research, which in turn gave 528 million REEF tokens.