Experimentation with decentralized finance has produced a number of very valuable standalone products that often combine to bring even more benefits to their users. It is actually the interoperability of products and the resulting mesh of value flow that is at the heart of DeFi innovation.
For DeFi products to be meaningful they have to be deployed close to existing liquidity in order to immediately capture value for their users. This usually means building on Ethereum, which has the largest available liquidity but is also marred by expensive transactions and long processing times.
This is why we are excited to announce that Elrond Network will be connected to Reef Finance, the cross-chain DeFi platform which aggregates liquidity from multiple chains and centralized exchanges.
“Assets that become globally available regardless of the originating platform will add up to a massive liquidity pool. The resulting unprecedented flow of value will amplify DeFi benefits for everyone. Actors like Reef Finance have the opportunity to enable that, so we are happy to interoperate towards our common vision.” said Beniamin Mincu, Elrond CEO.
Reef Finance is building a complex DeFi platform with three key components:
- Global Liquidity Aggregator, which taps into liquidity available on multiple chains and centralized exchanges
- Smart Yield Farming Aggregator, which enables users to get easy and automated exposure to multiple different DeFi opportunities
- Smart Asset Management, which enables users to rebalance their holdings across multiple different baskets of assets
The collaboration will focus on making eGold and Elrond native assets available in the Reef platform. This will enable users to engage with Elrond DeFi products directly from the Reef terminal, thus expanding their reach to a larger user base.
“The technical capabilities of the Elrond Network combine with attractive eGold tokenomics and a highly committed userbase to create a DeFi ecosystem with very high potential. We are excited to integrate it into our platform and collaborate towards establishing a global DeFi landscape that anyone finds easy to interact with.” said Denko Mancheski, Reef Finance CEO.
The collaboration is important for the Elrond ecosystem because it elevates the exposure of users to our DeFi ecosystem, therefore bringing more liquidity and value to it.
Elrond is the internet-scale blockchain, designed from scratch to bring a 1000-fold cumulative improvement in throughput and execution speed. To achieve this, Elrond introduces two key innovations: a novel Adaptive State Sharding mechanism, and a Secure Proof of Stake (PoS) algorithm, enabling linear scalability with a fast, efficient, and secure consensus mechanism. Thus, Elrond can process upwards of 15,000 transactions per second (TPS), with 6-second latency, and negligible cost, attempting to become the backbone of a permissionless, borderless, globally accessible internet economy.
About Reef Finance
Reef is the first cross-chain DeFi operating system built on Polkadot. With a seamless user interface, Reef offers its users a smart liquidity aggregator and yield engine that enables trading with access to liquidity from both CEXes and DEXes while offering smart lending, borrowing, staking, mining through AI driven personalized Reef Yield Engine.