Reef Finance works with Dafi Protocol to add synthetic dREEF tokens to its ecosystem
Reef Finance, a cross-chain DeFi operating system built on Polkadot, has announced a collaboration with Dafi Protocol. Dafi creates a relationship between blockchain project rewards and token adoption by releasing dTokens tied to projects’ demand.
Dafi’s synthetic protocol will be used to create dREEF tokens which will be pegged to the network demand and stimulate adoption. These synthetic tokens will help control hyperinflation while rewarding early adopters and long-term holders.
Synthetics for the Reef Ecosystem
Dafi Protocol rewards networks based on their adoption, creating long-term users through synthetics. These synthetics are distributed to users in a reduced quantity initially, to protect the network from hyperinflation. Longer-term users are later rewarded when network demand has grown as well as maintaining scarcity when demand is low.
Reef Finance is an ecosystem for decentralized finance (DeFI), allowing users to access DeFi liquidity across multiple blockchains. Built with Polkadot Substrate, the native Reef Chain is an EVM compatible chain for any DeFi solution out there looking to deploy its project on Polkadot. When launched, it will be fast, scalable, with low transaction costs, and no wasteful mining.
The Reef Chain enables projects to create or port tokens and NFTs onto REEF-20 standards. It is also the perfect platform for liquidity bridges, DEXs, AMMs, stablecoins, and money markets.
Reef + Dafi
Dafi will integrate its synthetic token protocol into the Reef ecosystem. This will allow Reef to create unique synthetic dREEF tokens that can help maintain well-defined mechanisms to limit token supply and reward users for their long-term commitment of aligning with Reef’s vision. The new dTokens in the Reef ecosystem will further instill an increased level of confidence for REEF token holders.
“Liquidity plays an important role in providing a seamless user experience and driving DeFi adoption. Reef is a highly innovative cross-chain liquidity aggregator. Through this model, Dafi is at the core of introducing sustainable token mechanisms that will be extremely beneficial for Reef users. The dReef tokens will simulate increased network activity and functionality in the Reef ecosystem which could help drive further network adoption.”
– Zain Rana, CEO of Dafi Protocol
Both Dafi and Reef have committed to synergizing their mutual efforts in order to make DeFi safer and encourage widespread adoption of blockchain.
“ Reef Finance was introduced with a mission of making DeFi easy to bolster massive adoption and drive increased utility. While focusing on the long-term utility of projects, synergizing with Dafi is important. The creation of synthetic dReef tokens is to incentivize users as part of sustainable token models and safeguard investor interest by promoting scarcity in times of need. We are glad that Dafi will help us to usher mainstream DeFi adoption.”
– Denko Mancheski, CEO of Reef Finance