Reef Finance, a DeFi ecosystem powered by Polkadot, has released a new investment product aimed at helping passive investors gain access to a broader portfolio of cryptocurrencies.\u00a0<\/p>\n
Reef Baskets V1 is described as an \u201cEthereum-based framework for deploying collections of DeFi tokens\u201d and other crypto assets. It operates in a similar manner to exchange-traded funds, or ETFs, which are popular among traditional investors and institutional managers.<\/p>\n
Investors who use Reef Baskets have the opportunity to invest in multiple DeFi token baskets at the same time. Reef Finance describes its Baskets as a \u201cquantitative approach to yield farming\u201d that reduces an investor\u2019s decision-making space to just two factors: how much money they are willing to invest and how much risk they are willing to assume.<\/p>\n
The initial version of Reef Baskets is available on Ethereum, with a forthcoming release scheduled for the Polkadot-based Reef Chain. <\/p>\n
CEO Denko Mancheski believes Reef Baskets provides a viable option for investors who don\u2019t have time to sift through the hundreds of new DeFi projects hitting the market. He explained:<\/p>\n
\u201cReef Baskets are the ideal tool for the passive investor who may not wish to spend time researching and curating his own portfolio of tokens […] Picking the winner is objectively hard in DeFi, and Reef Baskets combined with the Smart Engine simplifies the investment process.\u201d<\/p><\/blockquote>\n
Decentralized finance remains one of the hottest verticals within the blockchain industry. There are currently 274 cryptocurrencies listed in the DeFi category of CoinMarketCap, a figure that is likely to expand significantly this year as more projects come online. The market cap of existing DeFi projects is listed at just over $98 billion. <\/p>\n
Reef Finance made headlines last month after it received $20 million in strategic investments from Alameda Research. The purchase gave Alameda an estimated 528 million REEF tokens. <\/p>\n