To kick-off our Booster Partnership with Reef Finance, we hosted an AMA (Ask Me Anything) in our Telegram channel with Denko Mancheski, CEO of the EVM-compatible substrate chain tailored for DeFi.
The feedback from our community was nothing short of positive! That’s why we summarized the whole AMA for everyone who couldn’t participate.
Two lucky participants were able to win the Reef Uniaqua, enabling them to claim their share of the $10,000 $REEF Partnership Pool!
Lina: Please welcome @denkomanceski from Reef Finance!
Denko: Thanks, Lina! It’s a pleasure being here. I love the Uniaqua 🦄
Lina: Good to have you here. Can you please introduce yourself?
Denko: Sure, I’m Denko, CEO of Reef Finance. I started my development career in early high school with C++ doing algorithmic competitions for a few years. Then I moved into the enterprise world, where I worked for 2 ERP providers building modules and mobile apps, which are still used to this day. As I progressed my way into the commercial software, I joined one of the biggest healthcare platform providers in Europe — worked there for almost three years and led a team that was building a complex app for healthcare data modeling around the OpenEHR standard. In 2016 I got involved in blockchain development — started with NXT (Ardor), Steem, EOS, and of course, Ethereum. I built my own team of developers — we were basically the development division for a few projects. With all the experiences that we gathered as a team, we decided to build Reef — an infrastructure layer focused on Decentralized Finance.
Lina: Wow, that sounds interesting! We would love to hear more about Reef.
Denko: Sure! Our goal with Reef Finance is to take DeFi Mainstream. We decided to start by simplifying the process through which users get exposed to DeFi — basically a unified platform with access to all the important DeFi activities personalized for the non-tech-savvy retail investor. After we experienced tremendous growth, we decided to further expand this vision with Reef Chain — an EVM-compatible substrate chain tailored for DeFi.
Lina: That’s an amazing idea! Can you explain, in more detail, how you evolved from a yield engine to a blockchain infrastructure?
Denko: Yeah. I always base the decisions based on the environment — I think this should be valid for any startup. As we’ve seen, the world is shifting really fast, so a startup needs to stay agile and adapt in order to be relevant. The decision behind why we are building Reef Chain is because we see that the smart contract landscape is underserved. The current landscape for developers looking to deploy their DAPP on EVM-compatible blockchains isn’t ideal for most end users. Whether it be high gas costs, scalability issues, security, true decentralization, or approachability, each of those presents a challenge to the budding ecosystem of developers creating DeFi technology solutions who are looking to access the market quickly and easily and present solutions to their users. What we offer at Reef Finance is an easy way to create an instance of your DAPP on Reef Chain. To date, we have over 200 developers in our Matrix chat who have deployed over 200 smart contracts on our infrastructure.
Lina: Wow! Thanks for your detailed answer. This is more than one question, but here we go: What are the major benefits of the new Reef EVM Chain? What will you be solving for the DeFi ecosystem? How will Reef solve the scalability issue on Ethereum for dapp users and developers?
Denko: Reef Chain is a blockchain that is specifically designed for the DeFi ecosystem with backward compatibility in mind — we really value the work that has been done in Solidity hence the EVM support from day 1. We will be further expanding this with modules that is basically impossible to build on Ethereum — multiple VMs, on-chain KYC (imagine regulated stablecoin, real estate NFT), EVM extensions, etc…
Besides the tech part, one of the most important aspects is decentralization (actual, not just the word) — We aim to be truly decentralized by the end of the year. Meaning, we will not be in the majority of validators and will have handed it over to some of our more competent teams. We already started onboarding external validators — they will be soon announcing how they contributed to the Reef Ecosystem and why they believe in our vision — actions and long-term commitment are far more important than anything.
More technical details can be found here:
Lina: Perfect! Thanks for sharing. And when will your Reef Dapp store go live? Will it offer only Reef chain dapps?
Denko: The Reef DAPP store is basically ready. We are waiting to get the final audit done in order to start properly bootstrapping the ecosystem. Liquidity bridge (basically being able to swap your ethereum/bsc reef tokens to reef chain) through a reputable wallet as well as a reputable exchange is in its final stages. The moment this is live, we will release the dapp store — the first dapps would be the main financial primitives such as DEX, lending protocol, and IDO.
Yes, initially, it will offer only reef chain dapps — we are also working on an incentive mechanism for developers — their dapps get marked as “Featured,” and the users interacting with them get rewarded. Our job is to bring userbase in order for them to validate their product-market-fit. Projects which will achieve this will become part of the validator set — this makes sure that the validators are aligned with the growth of the ecosystem since they already have a presence with a product that has the potential to generate revenue by serving our userbase with something that they actually need.
Lennart: AMAZING! Can’t wait to launch there! 🔥 🐲 ✨
Lina: In your roadmap, you have plans to deploy a Reef DAO. Can you tell us more about that? What will you use to deploy it? Will token holders be rewarded reputation in the DAO?
Denko: Yeah, the DAO structure is now built into Reef Chain. Currently, it’s not easy for people to understand the importance of on-chain governance — Reef Chain has it. We can seamlessly do on-chain upgrades as well as expand our functionality based on what the landscape needs. We already have nominators as well as validators — the moment the liquidity bridge is open, many more users will become nominators (stake on-chain) and get actively involved in the governance process (if they want to).
Lina: Nice. When will Reef participate in the Polkadot Parachain Slot Auction?
Denko: The Polkadot parachain slot auction is important to us, but there is one factor that’s even more important — the value that a certain direction provides to our project as well as the flexibility — we didn’t want to depend on other project’s progress in order to do anything — as we’ve seen a lot of projects are now waiting on the auction for over a year. We still plan to become a parachain the moment we see value (such as network effect) by becoming one as well as the costs associated with it. It’s all about shifting resources efficiently, really.
Lina: And how does someone become a validator or nominator for the Reef Chain?
Denko: First, one should check out these links:
Next, the moment the liquidity bridge opens, one should migrate his/her existing tokens through a wallet/exchange.
Currently, one can do it through https://console.reefscan.com. This is not a user-friendly way to do it — it will be easier through the wallet (more news on it very soon). Oh, and for the users that want to be a bit more hands-off, nominator = staking.
Regarding a validator, it’s a bit more complex — we are currently in a position where we are picking the validators (such as projects which contribute to the ecosystem), but soon we won’t be able to do this (meaning reef chain is becoming decentralized). We plan to introduce a public validator set this year.
Lina: Nice! The community will love it 😍 Ok, one last question before we open up the chat for the question of our community. Reef launched its grants program this year. How do you plan on supporting NFT projects with the program?
Denko: The grant program is meant for projects in different stages — we want to make sure that the grants are allocated productively (learning from the mistakes that other ecosystems have made). Some projects do not need a grant in order to be productive — they already have the resources. In this case, we want to contribute to the liquidity — such as make the NFT marketplace more liquid/active. Reef is not a project that will *die* in a bear market — we want to make sure that the grants, as well as our runway, last for a very long time. Also, electing other projects as validators ensures that they will not die either since they have a stable source of funding even during the bear market.
Lina: Thank you so much for your detailed answers. Appreciate it.
Denko: Thank you, Lina!
Lina: Are you ready for the questions from our community?🔥
Denko: Yeah 🦄
Q1: Currently, the number of DeFi projects is growing steadily, and each project is similar to the other. Among these projects, which innovate will survive. What are the features of your project that you trust most in order to be a long-lasting project?
Denko: Reef is not just a DeFi dapp — it’s an infrastructure layer for powering dapps. Positioning by validating product-market-fit and being flexible to shift based on what the userbase needs are one of our biggest “features” for being a long-lasting project.
Q2: What is Reef’s main goal in 2021? Do you plan to list on new exchanges?
Denko: You can find our roadmap on the website — in short, our short-term goal is to
- Open liquidity bridge and enable governance (staking)
- Launch important dapps (DEX, lending, IDOs)
- Create a high-quality decentralized validator set
Q3: How does Reef Finance evaluate the importance of the user community? In the near future, does Reef Finance have any special plans to attract and expand the community?
Denko: Yeah, there will be a lot of fun participating in staking, IDOs as well as using featured dapps. Oh, and the debit card — can’t wait for this to go live.
Q4: Do you have tutorial videos so we can get to know your project more clearly, or do you have a YouTube channel or something? Can you share it with us?
Denko: We are launching a dedicated *resources* page which will contain guides on how to start — even if you never had a crypto wallet
An ecosystem for Decentralized Finance.
A very early version ☝️
Q5: Can you tell us about the motivations and benefits of holding tokens in the long term? What plans to drive demand and token scarcity?
Q6: Will Reef Finance open its own wallet app?
Denko: Yes, we are starting with polkawallet integration, which will progress into a standalone app
Q7: I’ve been a fan of Reef Finance for a long time. I have 2 questions.
- 1: When the mainnet will be deployed?
- 2: Will the NFT bridge function on the Reef be supported by Polymonters?
Denko: 1. Mainnet is already live — we just have to finalize the audit in order to open the liquidity bridges. After this is done, users can start staking as well as interacting with the dapps
2. Yes, we do have a plan to do this.
Winners of the AMA were @thanhmr & @BongBilly (Q6 & Q8).
About Polychain Monsters
Polychain Monsters are beautifully animated cross-chain NFTs with varying scarcity, waiting for you to be discovered in digital booster packs. These NFTs will play an integral part in upcoming off- and on-chain games. In addition, Polychain Monsters offers DeFi features such as ERC-20 & BEP-20 PMON, as well as NFT staking.