DAFI Protocol & Reef Finance partner to create synthetic dREEF tokens for network adoption
In the light of the latest strategic collaborations, we are proud to announce a partnership with Reef Finance, the first cross-chain DeFi operating system built on Polkadot. Reef Finance is a leading smart liquidity aggregator and advanced DeFi yield engine that provides a seamless user interface to execute smooth trades.
DAFI Protocol has set up an entirely new inflation model that can significantly contribute to massive network adoption. It allows seamless integration of synthetic dTokens for every decentralized economy to reward based only on their adoption metrics. Not only does DAFI aid in controlling excess supply, but it allows implementing new staking models for project reward distributions. This is the first transition since Bitcoin, in how any decentralized network is incentivized, by using demand as a factor of reward supply distribution.
This ambitious crossover will ensure driving massive adoption through the seamless integration of dTokens in Reef’s ecosystem by employing DAFI.
New Dimensions with Dafi for network growth
Through this partnership, Reef users will enjoy increased benefits while implementing DAFI. Firstly, the introduction of dReef tokens into the ecosystem will drive an increased incentive to long-term users. It essentially rewards dReef holders for staying within the system, and staking for longer periods of time.
With the introduction of a new token distribution model for staking, Reef will distribute rewards to its users in reduced quantity in a timely fashion. Early supporters will benefit by receiving maximum returns due to the network growth and demand-supply dynamics in the longer run. The DAFI sustainable adoption model primarily focuses on initially reducing quantity/issuance and enhancing scarcity. Once there is increased network demand, it releases dTokens to match the changing demand.
This protects the network from supply shocks and hyperinflation in phases of decreased demand. The pegged dTokens are distributed as incentives while gauging the demand and supply of the native token. By employing this model, Reef will provide greater incentives to long term users and early adopters, thus protecting their interest to drive overall utility.
Better users within Reef
The current typical staking programmes can only incentivize through large token quantities being distributed. This creates less stake in the system and favours shorter term users to exit. It’s a broken model which DAFI aims to compete with. By incentivizing proportional to network demand, users who wish to exit early will have fewer rewards – which favours those still in the system.
It’s a game theory view of creating a new equilibrium between participants in the staking system, to coordinate growth in the network to maximise their rewards. DAFI enables the creation of synthetics which is instrumental in distributing project rewards, bounties, and staking to the community users.
This partnership will allow in exploring never-seen-before possibilities in the financial sphere. As a first of its kind, DAFI Protocol’s salient features will provide immense value to the Reef ecosystem by allowing them to maintain well-defined mechanisms to limit token supply and reward users for their long-term commitment of aligning with Reef’s vision of making DeFi easy. This alliance will serve as a foundational stone for the further exchange and synergies on various levels in the future. Indeed, with the new flavour of dTokens in the Reef ecosystem, will further instill an increased level of confidence for $REEF holders.
Denko Mancheski, CEO of Reef Finance said,
“ 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.”
Zain Rana, Founder of DAFI Protocol said,
“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.”
About DAFI Protocol
DAFI reinvents how every decentralized network is rewarded. By creating synthetics pegged to different decentralized networks, every blockchain and cryptocurrency can create a dToken flavour to reward their early users while still enhancing scarcity when demand is low.
DAFI can reward a network even when demand declines by issuing synthetics that will reward user’s later – instead of earlier. This approach will change the foundation of all staking, liquidity, and even social reward systems for the entire decentralized world.
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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 an AI-driven personalized Reef Yield Engine.