PolyCUB Expansionist Strategies - Understanding the PolyCUB V2 Tripod

Like the Holy bible will say, wisdom is profitable to direct, but some have wisdom without direction.

One's ability to understand the current trends in the financial world, can help the individual to make the right decisions and save the entire ecosystem from falling into disasters.

Source

To simplify the above statement further, we'll see that there's wisdom in quick adjustment of plans, just as was done by the LeoFinance team as seen below:

After spending a lot of time researching the economics of POLYCUB and how the rollout has performed, we realized that "V1 Vaults" (the original Kingdoms vaults, etc.) on PolyCUB don't generate enough value. Each $1 that enters one of those vaults is earning yield and not providing enough value to cover that yield generation for the protocol at large.Source

When a system isn't creating much values as required, it's the duty of the developers to look out ways to solve the low value problem. This where we'll look into V1 and V2 strategy to know why the shift was made.

The new POLYCUB V2 vaults have been discussed a few times. The name can be slightly confusing - this V2 deployment is not a migration of any existing POLYCUB vaults. Instead, it is the deployment of a new style of vaults that we haven't seen anyone in the DeFi landscape tackle.Source

Many have been confused while explaining what the PolyCUB V2 is all about. Some said it's an existing PolyCUB vault that's just deployed to make the difference. But it's worth to note that the V2 strategy haven't been used ever by any DeFi platforms. It's an entirely new idea that has the abilities to project the intended yield optimizing goal of PolyCUB.

Understanding the PolyCUB V2 Tripod:

• pHBD
  pHBD to me is taking that opportunity that comes but once. pHBD was birthed out of the decision taken by the Hive Witness in the middle of last month. This idea came in after the hive witness unanimously agreed to move the interest on HBD savings from 12% to 20% APR. This paradigm shift in APR solved the demand issues facing HBD, but left the blockchain with a larger supply (liquidity) challenge.

Understanding this fact brought about the quick launching of PolyCUB HBD (pHBD) on the polygon network.

The pHBD launch offered the general hive blockchain the options of either earning 20% APR (native HBD) or a whooping 57.98% APR (pHBD). This led us to test running how the platform can work with a larger goal in mind

The first of these vaults was pHBD. pHBD was a bit of a trial run for us. We wanted to see just how much value could be accrued for the protocol liquidity. It turns out, quite a lot.Source

This is usually the case when a new platform is designed, one must understand how it works with lesser amount of money fixed and once it's certified, the full package will be unveiled.

What values does pHBD bring to the PolyCUB Project?

The values of pHBD are numerous in nature and they're as follows:

• pHBD - native HBD held as 1:1 collateral for the wrapped equivalent - staked on the Hive blockchain earning 20% APR = value accrual for PolyCUB's PoL
• pHBD 0.25% wrap and unwrap fee = value accrual for PolyCUB's PoL
• pHBD cross-chain arbitrage = value accrual for PolyCUB's PoL
• pHBD-USDC LPs need to buy more POLYCUB to stake as xPOLYCUB to control governance and drive pHBD-USDC vault yield higher

https://leofinance.io/@leofinance/how-to-exponentially-deepen-polycub-liquidity

The Other PolyCUB V2 Components of the Tripod

• pHIVE-POLYCUB
• pSPS-POLYCUB
  With the other two parts of the tripod still in the making process, it should be noted that among the 3 PolyCUB V2 vaults, pHBD is the smallest in terms of value creation.

This is because pHIVE is pegged to hive and pSPS is pegged to Splinterland. It's a known fact that the fastest growing and most profitable venture in the DeFi world today is blockchain gamings.

Since this is the case, pHBD cannot compared itself with the other angles of the tripod.

Posted Using LeoFinance ^Beta