Pioneering DeFi on Polkadot: Binance Launchpool Introduces Reef Finance

Binance Launchpool, a new initiative designed to bring the decentralized finance (DeFi) experience to Binance users, today announced its new project, Reef Finance, a multi-chain smart yield engine and liquidity aggregator where any financial hub can integrate into. 

Reef Finance is powered by Polkadot and shares its security model with the ecosystem, and enables cross-chain integrations across top DeFi protocols. Reef gives the retail investor access to the DeFi landscape with a very low technical barrier of entry while at the same time, it augments the decision-making process based on the user’s risk levels.

Reef's infrastructure is a chain of multiple smart contracts composing and integrating on top of the ecosystem. This entry component is called a basket engine which communicates with the liquidity aggregator and the analytics engine. This holds the user’s position on-chain allowing the user to invest/divest into multiple DeFi activities with a single click and reducing the necessity to manage the outputs of the activities manually (eg: LP tokens). The engine is being extended to support insurance of the basket and multi-hop strategies. The current implementation is done in Solidity, while the Rust (ink!) implementation is on its way. The infrastructure will have instances on multiple ecosystems - Ethereum, BSC, Plasm, Moonbeam and Avalanche. This will allow its users access to numerous DeFi activities. 

The REEF token is a governance token used to vote on different proposals such as releasing new features, readjusting certain parameters in the system, and more. Besides governance, the token is also powering Reef’s infrastructure, users can pay the protocol fees with it. It is also deeply integrated into the basket engine and the yield distribution mechanism. 

During Launchpool participation users will be able to stake their BNB, BUSD, or DOT tokens into separate pools to farm REEF tokens, starting from 2020/12/23 at 0:00 AM (UTC). Binance will then list REEF in the innovation zone at 2020/12/29 6:00 AM (UTC) and open trading for REEF/BTC and REEF/USDT trading pairs.

“By abstracting away the complexities of using order books and learning how different protocols work, Reef gives the retail investor access to the DeFi landscape with a very low technical barrier of entry and additionally augmenting the decision-making process based on the user’s risk levels,” said Denko Mancheski, Founder and CEO of Reef Finance.

"It’s great to welcome the first Polkadot ecosystem project to BNB Smart Chain”, said Binance CEO and Founder, CZ (Changpeng Zhao). “We look forward to working together with Reef Finance and are happy to support their progress through Binance Launchpool".

For more information about Reef Finance, read the in-depth report provided by Binance Research.