The reef basket is a new feature that would help to make DeFi easy. I will explain what baskets are, what they consist of, and how you would use them to invest.
WHAT ARE BASKETS ON REEF?
Baskets are a quantitative approach to yield farming, reducing the decision-making space for the investor to do essentials. Some investors use to face a lot of problems when investing in DeFI and that would lead them to ask the questions below.
- How much money should I invest?
- How risky do I want my investment to be?
To achieve this, REEF is using various modering portfolio optimization methods, transformations, and covariance matrices.
In simpler terms baskets simplify the entry and management of various DeFi protocols from a single place called "the REEF decentralized application". The first version of the reef basket protocol is on Ethereum mainnet and they are working on deploying on other blockchains where GAS fees are lower
and acceptable for smaller budget allocations, like the $REEF blockchain.
The initial version of the REEF basket is called a DEFI basket. The DeFi basket consists of UNISWAP, BALANCER, and MONISWAP pools as well as many ERC20 tokens.
REEF is working on several versions of baskets using different protocols which would produce more stable and higher yields.
ABOUT THE DEFI BASKETS ON REEF
On the left side of the picture, you can choose how much you want to invest, ranging from 1 ETH to a maximum of 100 ETH. You can also select how you want your risk rate to be, ranging from LOW, MEDIUM, and HIGH.
LOW RISK would, of course, yield low returns while HIGH risk would yield high returns as well as the LOSSES.
Choosing any of these three options would automatically generate a composition of pools and tokens and would display their historic returns below.
You can modify how much of your investments go where you can also add or remove pools and tokens while the REEF basket would generate a return of investment composition for you so that you can have an easier time, viewing how it performs.
LIQUIDATING YOUR INVESTMENTS
You can choose to liquidate your investments at any time that you want and when liquidating you can choose to reinvest your generated profit into the REEF-ETH pool, providing liquidity and earning even more profit when other users interact with it.
Due to high GAS fees on ETH reef is working on launching their own blockchain in 2021 and porting their own baskets over to their blockchain as well.