REEF tokens have been approved as collateral for minting stablecoins.
- ReefFinance has been approved by the OpenDAO as collateral for its stablecoins
- ReefChain is a customized chain allowing creators to build dApps or deploy existing ones from Ethereum blockchain
- The ecosystem will bring a potential for other tokens to also be used as such collaterals
- ReefFinance has agreed to share $25k worth of REEF tokens with the liquidity providers
ReefFinance is an ecosystem for DeFi that has also integrated several chains like Ethereum, Polkadot, and Avalanche. ReefFinance has recently announced that OpenDAO has approved its REEF tokens as collateral. OpenDAO is a toolkit that connects the real world with DeFi, incubating and providing grants. Notably, the token will now be used as collateral for minting USDO stable tokens on the Binance Smart Chain (BSC). On the other hand, the protocol has been bridging real-world assets to the decentralized finance (DeFi) sector.
IS REEFFINANCE A WORTHY PROJECT?
For decentralized applications (dApps), Reef Finance has created a fast, scalable, and EVM compatible chain. ReefChain, is also in the canary version of the main net, as the official version is due to launch by the next couple of weeks.
ReefChain is a customized chain allowing creators to build dApps or deploy existing ones from the Ethereum blockchain. On the other hand, it is known that the launch of the mainnet will enable the chain to connect with liquidity from a range of major blockchains the protocol has integrated with. Indeed, the benefits of the chain help gain its user’s exposure to interoperability across several ecosystems.
REEF AS COLLATERAL TO A STABLECOIN
In coordination with ReefFinance and OpenDAO, the OmniCOMP stablecoin miner contract will be deployed on ReelChain. The deployment will enable the ecosystem to mint USDO on the blockchain-backed by REEF. Ultimately, the ecosystem will bring a potential for other tokens also to be used as such collaterals.
Additionally, as the collateral;l for the stablecoin, REEF will also become an official liquidity mining partner with the project. Indeed, the USDO liquidity providers can earn OCP while hodling the tokens. And later, the OCP could be used for staking, which can help earn REEF.
HOW WILL THE INTEGRATION HELP LIQUIDITY PROVIDERS?
ReefFinance has agreed to share $25k worth of REEF tokens with the liquidity providers as per the terms of the partnership. Notably, such tokens will be distributed to the liquidity providers over a period of 6 months. However, many details about the distribution, including dates, are yet to be revealed.