As the future of finance is being built on public crypto-denominated blockchains, new products and services continuously evolve and develop: On new Layer 1 platforms services and incentives are constantly added to emerging DeFi projects seeking to accommodate the demands of a growing audience of DeFi enthusiasts.
Ref.Finance is the premier bluechip DeFi project of the NEAR Ecosystem. Combining best practices built into the NEAR Protocol, with a value-focused design of the core platform, Ref.Finance is a stack of DeFi services and products built around a core AMM. Set [tentatively] to initially launch 2.5% of its token supply on Skyward Finance in the middle of July, Ref is gearing up to offer competitive, affordable, and scalable DeFi services to the larger crypto-verse.
Ref.Finance: A Holistic Overview of NEAR’s Bluechip DeFi
The first product Ref.Finance is launching is a novel AMM built on NEAR, similar in design to Uniswap. The nature of the $REF token, the governance of the Ref DAO, and the core services offered by Ref to projects in and beyond the NEAR Ecosystem, are all harmoniously integrated with the core functionality of this underlying AMM.
- Swap Fees = $0.005 USD per swap paid in $NEAR. Of this, 1 bps is reserved for developer incentives for swaps, while 4 bps of each swap are reserved for the Ref Treasury.
- 1–2 Second Finality and Optimal runtime allowing for competitive settlement and costs between trades, on par with most existing centralized exchanges.
- ERC20 compatible via the Rainbow Bridge and soon the Aurora Network, allowing for the rapid transfer of both Ethereum based and NEAR based assets between the two networks. As Rainbow Protocol is built out further into other L1 blockchains, assets will be easily listed and sold on Ref from other chains.
- Decentralized Governance via the Ref DAO. Ref pushes the limits of community governance with a fully developed and deployed Astro DAO, split between two councils. Token generation, distribution, and management, are effectively governed in a decentralized and community-oriented manner.
- DeFi Legos built around the core Ref AMM to allow for trading, swapping, synthetic asset issuance, tranching, and much more.
Liquidity Providers on Ref: The Opportunity At Hand
There are three primary innovations to Ref.Finance’s AMM design:
- Multiple liquidity pools are contained in a single contract. This means that traders can atomically trade across pools in a single transaction.
- Liquidity Provider (LP) fees are customizable depending on the nature of the pool being supported. LPs are able to set their fees based on the nature of the token, and the amount of liquidity at hand. Higher fees for illiquid or volatile (new) tokens can be priced in by LPs.
- Developer incentives are built into the Ref fee structure, incentivizing developers to use Ref.finance for any swaps that may be conducted inside of their own DApp or for specific DeFi projects they build on top of Ref.
In short, the design of Ref is optimized to attract liquidity providers of varying levels of risk, offer traders world-class swapping infrastructure, and incentivize developers to build out necessary and up-and-coming DeFi legos on top of Ref.
A Macro Look At Ref.Finance
Ref is developing at a time when DeFi is maturing and different L1 ecosystems are unfolding with their own suite of services and products. Ref holds a number of competitive advantages over similar products, but its most competitive offerings by far include its low-transaction fee model, built-in developer incentives, innovative liquidity pool design, existing interoperability with Ethereum via the Rainbow bridge, and decentralized governance through the Ref DAO. As Ref continues to develop more into the future, expect more products, crypto-economic innovation, community governance, and trading of tokens on the platform.
Be sure to keep up with all of the latest Ref.Finance updates by following their official Twitter account.