cryptoslate.com
Reef Finance, a multi-chain liquidity provider, is giving clients a way to gain exposure to DeFi tokens and other digital assets through an ETF-like investment product. One-click and they are instantly exposed to multiple DeFi products, thus taking part in the recent crypto surge.
Dubbed ‘Reef Baskets,’ the new vehicle allows users to avoid the brunt of investing in multiple individual protocols. The bundle is a market-weighted basket of different DeFi holdings with a simplified asset-management approach.
Reef Finance’s liquidity aggregation and multi-chain smart yield engine already allow the integration of any DeFi protocol. With the news offering, the non-custodial platform is curving out a new niche in a sea of complex financial solutions by serving risk-averse investors with a single point of entry.
Reef Finance stresses in the product description that over time, a range of baskets will be deployed, each with a collection of DeFi assets involving multiple risk-reward ratios. As such, Reef Basket V1 will offer average investors a way to access DeFi without significant technical barriers that have held back adoption of crypto products. Due to a large number of overlapping products, the newcomers are just overwhelmed when looking at the space.
Reef further explains:
“For example, a particular Reef Baskets might contain assets belonging to relatively new projects and protocols. Such a basket will have higher profit potential but also pose a higher risk to investors.”
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The basket of the proposed investment product could be also customised to cater to the individual needs of each investor’s segment, providing them with more relevant opportunities.
The underlying infrastructure of Reef Baskets is a chain of smart contracts that compose and integrate the ecosystem. This engine communicates with liquidity aggregators to enable each basket portfolio to transact multiple DeFi platforms from a unified interface.
Reef Baskets V1 has been initially deployed on the Ethereum blockchain. Ultimately, the product will support the Polkadot Network Substrate-based chain and a number of other networks to give users the greatest access to DeFi.
Reef’s newest product is also another sign of how blockchain players are looking to give their clients access to the upside of a booming DeFi market. With the growing institutional interest, crypto-based investments could eventually become part of the recommended portfolio for everyday investors.
The new offering complements Reef Finance’s product portfolio that aims to create a platform to combine all of the various DeFi applications in one place. Subscribers in the Reef Baskets can also extend their reach to buy, trade, stake, loan and borrow a variety of crypto assets.
Managing such a diverse package of investment opportunities within crypto, and specifically in decentralized finance, would have been hectic without Reef Finance’s aggregation solutions.