Reef Bonds is the new DeFi product from Reef Finance with a focus on investment. It follows a suite of partnerships and announcements from Reef Finance in 2021. Reef Bonds wants to attract more users to the DeFi world by offering them returns for locking their assets.
It provides users the chance to lock their tokens in a smart contract for a specific timeframe and receive earnings based on the contract. The new investment product will be accessible through Reef Dashboard soon.
More Investing Opportunities for DeFi Users
Investment is one of the most popular use-cases in the DeFi world. Investment products provide the opportunity for cryptocurrency holders to receive earnings from their assets.
Most of them are focused on incentivizing users to buy a token more and lock it so the platform can use the locked asset as an investment.
Reef Finance that provides multiple DeFi products has decided to offer a new investment product that attracts new users to the $REEF token.
Reef Finance started the year 2021 with various partnerships and new products. It partnered with five DeFi platforms and listed the $REEF token on major cryptocurrency exchanges like Huobi Global. The new Reef Bonds product follows that path and helps Reef Finance, a Polkadot ecosystem project, find more users.
As mentioned before, Reef Bonds focuses on locking assets for a limited time and earning rewards for them.
Reef Finance describes the new product:
“Reef Bonds is a DeFi initiative where users can stake their assets for a certain lock-up period and earn lucrative returns. Each user’s registered deposit address will have a maximum deposit limit configured through smart contracts, and every Reef Bond will also have a certain maximum deposit amount.”
Depositing assets in Reef Bonds will be available for a limited time. Besides, each bond has a maximum deposition limit. So, Reef Finance encourages users to deposit their tokens in binds at the initial release because the maximum level may be reached before the time limit.
Everything is trackable through Reef Dashboard and the applications. After the bond time limit expires, users can withdraw their tokens and earnings.
There will be three locking periods available in Reef Bonds. Users can lock their assets for six months, one year, and two years. At the initial release, only locking and earning $REEF token will be supported.
But Reef Finance plans to add more tokens. Users will be able to deposit a token and earn rewards in another token in the next steps.
If you found this article interesting, here you can find more Blockchain and cryptocurrency news