With the rapid pace of technological advancements from the past couple of years, decentralized finance is something that is increasingly becoming common in cyberspace and has widely become popular. According to DeFi Pulse, the largest single segment of DeFi is the lending segment at 43.316 billion in size. But unfortunately, everyone is suffering from the issue of deficiency of interoperability.
This issue results in the occurrence of frustration among users as they have to interact with numerous applications if they want to cherish all the benefits provided by DeFi. As simplicity is the ultimate sophistication, simple interfaces permit users to interact with all of the preferred DeFi applications efficiently at one place. This provides a remarkable solution and that’s exactly the purpose of creating reef finance.
Initiation of Reef finance project aims in developing such a platform that merges numerous DeFi applications in one place. This facilitates users by providing ease of access to the DeFi ecosystem. Let us have a deep dive into the utmost questions regarding reef finance.
Liquidity aggregator, reef finance, created by Polkadot, is a multichain smart yield engine that permits incorporation with different DeFi protocols. It enables cross-chain integration by sharing security models across the DeFi ecosystem. Moreover, Reef permits retail investors a method to have access to DeFi without fundamental technical barriers while assisting in the decision-making process.
The CEO and co-founder of Reef finance Denko Mancheski proposes a solution to physiological barriers that have held back the acquisition of DeFi products.
According to Mancheski,
“Enthusiasm of the average person boosts by looking at numerous overlapping DeFi products. This results in an acquisition by newcomers unlikely. From the technical point of view, we are moving towards a less complex interface for easy user access and enhanced user experience.”
Any fast-evolving industry can easily become fragmented. Same is the case with DeFi. For users that means that you are required to find a way to pierce everything altogether in case you want to involve more than single aspects. Some people cherish these sorts of challenges and can survive but there also exist few who get frustrated by the complexities involved. Despite the reality that there were no others envisioning a method to leverage DeFi and blockchain technology to enable interoperability among all platforms, thankfully the team at Reef beginning to work for the solution without any validation, developing an understanding of the complexities of decentralized finance must be avoided to provide ease of access and enhanced customer experience.
On the substrate framework, the Reef Chain is under development by Reef Finance to address the problem of lack of scalability. Reef chain is an EVM compatible chain with a completely decentralized proof of commitment mechanism, something that Etheruem 2.0 wants to be. This also permits reef to become a next-generation DeFi platform where developers can effortlessly import their existing DeFi applications without the requirement of any changes in code from legacy ethereum. It’s not only that Reef is EVM compatible, but additionally, it is going to be the very first DeFi blockchain developed by Substrate.
An open-source multi-blockchain protocol, Polkadot mainly focuses on the enhancement of security, interoperability, and scalability. Substrate, an underlying technology is a modular framework that permits seamless development and deployment of purpose-built blockchain by developing pre-built or custom components.
Recently, Polkadot-based reef finance claimed that Alameda’s research by purchasing reef tokens has made an investment hitting the figure of $20 million. The firm said in an announcement that Alameda research has become a fundamental stakeholder in a cross-chain decentralized finance platform. Last September, reef announced a $3.9 billion funding round with the assistance of Kinetic Capital, NGC Ventures, and more.
The Almeda investment depicts a remarkable bet of DeFi traction outside Ethereum, the leading venue of sort financial infrastructure application developed on blockchain. A requirement of such services has made DeFi a $42 billion concern but also has paced up gas fees on ethereum to sky-scraping records.
One common issue with numerous applications is that developers are engrossed in technological advancements, and they usually miss out on the concern that how an average user interacts with an application. Later the development community continues to deploy applications on the basis of current technology and came across a certain ecosystem of technological complexity which happens occasionally. That’s the main reason why numerous projects struggle with acquisitions. Developers need to step back at a particular point and view the system from the user’s perspective.
Instead, developers assume that users will find their own way of acquisition and interaction with technology which happens rarely. That’s why numerous projects struggle with acquisition. All of the value standpoints are in vain if the project involves much more complexities for an average user. Presently it is essential that sharply-edged technological advancements are participating in the DeFi revolution. Reef will make it feasible for everyone to cherish the advantages provided by DeFi which is the solid reason why DeFi always stands out. Hence reef is the force extracting the DeFi landscape so that everyone can participate as planned.
Even since the DeFi evolution exists, developers are struggling to search for new methods to make their service understandable and responsive to their users. Unfortunately, their technological backgrounds often made that unattainable. Thanks to the reef finance platforms that permit newcomers to enter the DeFi ecosystem without the requirement of developing a complete understanding of what is actually happening in the background. This assists to promote the massive acquisition of DeFi services and applications in general.
Since Reef provides a gateway to decentralized finance, there would be no doubt in saying that reef is a ground-breaking platform. Knowledge and experience of blockchain will no longer be limited to those who are stepping into the cyberspace of DeFi. Unquestionably, reef finance provides better customer experience and risk assessment with the incorporation of AI-powered identity verification solutions. On the basis of how recent controversies are handled about expansion and circulating supplies, the future of reef finance is obscure. Reef users provide reliable automation and now have an effortless method of managing digital assets and earning yields.
Billy Harris has been working in digital marketing industry since 2010. He has a Bachelor degree in Computer Science and currently working as a web developer.