Reef Finance, a DeFi ecosystem powered by Polkadot, has released a new investment product aimed at helping passive investors access a larger portfolio of cryptocurrencies.
Reef Baskets V1 is described as an “Ethereum-based framework for deploying DeFi token collections” and other crypto assets. It works the same way as exchange-traded funds, or ETFs, which are popular among traditional investors and institutional managers.
Investors who use Reef Baskets have the option of investing in multiple DeFi token baskets at the same time. Reef Finance describes its baskets as a “quantitative approach to yield farming” which narrows down an investor’s decision space to just two factors: how much money they are willing to invest and how much risk they are willing to take. assume.
The initial version of Reef Baskets is available on Ethereum, with an upcoming release planned for the Polkadot-based Reef channel.
CEO Denko mancheki believes Reef Baskets is a viable option for investors who don’t have time to sift through the hundreds of new DeFi projects hitting the market. He explained:
“Reef Baskets are the perfect tool for the passive investor who may not want to spend the time researching and managing their own token wallet. […] Choosing the winner is objectively difficult in DeFi, and Reef Baskets combined with the Smart Engine simplifies the investment process. “
Decentralized finance remains one of the hottest verticals in the blockchain industry. There are currently 274 cryptocurrencies listed in CoinMarketCap’s DeFi category, a figure that is likely to increase significantly this year as new projects go live. The market capitalization of existing DeFi projects is valued at just over $ 98 billion.
Reef Finance made headlines last month after receiving $ 20 million in strategic investments from Alameda Research. The purchase gave Alameda approximately 528 million REEF tokens.