- TRON has partnered with Reef Finance to expand its defi ecosystem.
- The collaboration will enable all Reef users to directly interact with TRON dApps.
As users look for more cost-effective alternatives for interacting with decentralized finance applications, TRON is stepping up to the plate. With this goal in mind, TRON has announced a partnership with Reef Finance and will be integrating Reef’s defi network into the TRON ecosystem. This collaboration will open the possibility for all Reef users to directly interact with TRON dApps within the Reef platform, creating an easy-to-use entrance point.
Reef Finance Is riding a wave
Reef Finance is a cross-chain defi network that offers its users access to liquidity from centralized exchanges (CEXs) and decentralized exchanges (DEXs). As a smart liquidity aggregator across a variety of blockchain networks, Reef optimizes users’ yields by offering the best possible trading rates for any digital asset available. Reef runs on its AI-based Reef Yield Engine, a component of the platform that aggregates liquidity into a single trading pool. Built to analyze the trading landscape and help Reef users make the best financial decisions possible, the AI can assist new users and lower the barrier to entry in the cryptocurrency space.
The ability to freely trade without market manipulation is a major selling point of defi, especially after witnessing the hypocrisy that took place in regard to GameStop and AMC stock trading. The world saw first-hand that the stock market is rigged in favor of the rich, protecting their best interests to the detriment of regular traders. This is why decentralized applications are so important, specifically decentralized exchanges and liquidity aggregators, as there is no singular body that can decide how the platform functions. Unlike centralized financial markets that benefit the rich, decentralized markets benefit all users via pure free market dynamics.
TRON makes defi fast and inexpensive for users
Defi has taken the world by storm, growing from less than $1 billion in total locked value (TVL) across defi applications in early 2020 to its current level of over $40 billion. The majority of the defi ecosystem builds on top of Ethereum, the preeminent smart contract platform, but its bottlenecks are pushing users to look for alternatives. With Ethereum’s extremely high transaction fees, regularly eclipsing $20 or more to interact with a smart contract, users have turned to faster and more cost-efficient platforms such as TRON. TRON offers many of the same possibilities available through Ethereum smart contracts and defi, but at much lower expense.
This may partially be due to the disparity in platform users between Ethereum and TRON, but regardless, there is no denying that it is preferable to spend $0.01 or less on a TRON transaction than over $20 on Ethereum. As users look for more cost-effective ways to access cross-market liquidity, this TRON and Reef partnership will open new opportunities for defi proponents.