Introducing Reef Baskets to manage and optimize investments
Reef Finance has built the first cross-chain DeFi Operating System, and our goal is to make DeFi easy for everyone. Reef aggregates liquidity from various centralized and decentralized sources onto a single platform, allowing users to access the best DeFi opportunities all in one place.
We will be introducing a number of solutions to help investors make use of the available investment opportunities. Reef Baskets is one of the first products to help simplify your investment journey.
What are Reef Baskets?
Reef Baskets are an application of the Reef Baskets engine, and include a collection of DeFi tokens and assets. The Reef Baskets are designed to simplify the entry and management of various DeFi holdings from a single place. Through Reef Baskets, users can invest in multiple protocols through just a few simple steps instead of purchasing tokens over multiple exchanges and liquidity pools.
A quick guide to Reef Baskets: https://youtu.be/gUc-Qzkqr84
Upon onboarding, a selection of Reef Baskets will be presented to users, each with their own associated risk and potential returns. The low-risk Baskets will yield steadier but low returns, while the high-risk Baskets might offer higher returns, at the risk of higher loss as well.
The Reef Baskets can be considered an implementation of a cryptocurrency index fund or the crypto equivalent of an ETF. For DeFi investors, the Baskets reduce the complicated decision-making process to effectively two questions — How much money should one invest? And, how much risk is one willing to take?
Several different types of Reef Baskets representing different protocols will be made available to users, which will produce a variation of more stable and higher yields. For example, one Basket will provide users access to liquidity from pools such as Uniswap, Balancer, and Mooniswap, along with a plethora of other more proven ERC-20 tokens.
Each Basket’s complete composition will be visible on the Reef platform, along with historical return over 3-time spans — last month, last six months, and the previous year. This tooling will help users compare all the available Baskets’ performance and pick one which is likely to generate the maximum returns.
Users will also have the flexibility to customize Reef Baskets, modify how much investment is allocated to each pool, and add/remove pools or tokens as per their choice. The Reef interface will automatically generate ROI for the new custom allocation, helping users develop the composition that can provide the most customized returns for everyone.
The yield generated will be displayed on the Reef platform in real-time. Both the principal and the accrued interest will be redeemable any time the investor wants to. Furthermore, while disinvesting, users can re-invest the generated profit back into the REEF/ETH pool, providing liquidity and compounding their profit.
Reef Baskets on Reef Chain
The first version of the Reef Baskets will be deployed on Ethereum. However, we are all aware of how transactions on Ethereum can get stuck at the slightest hint of network traffic. Since any interaction with Reef Baskets will require transaction confirmations on the blockchain, any such action will require gas fees. If the network traffic and corresponding gas fee are high, this can eat a significant portion of the yield generated.
Reef Finance is working towards developing Reef Chain, a DeFi blockchain built on the Substrate framework and customized for the needs of the DeFi DApps of tomorrow. Reef Chain will offer a host of advantages, including swift transaction confirmation at low fees. We’ll be deploying our Reef Baskets on Reef Chain, which will enhance the user experience significantly, further encouraging investors to explore the DeFi landscape.