PolyCUB V1 - V2 Dichotomy: Which of Them Creates More Values for PolyCUB + Anticipating the Biggest PolyCUB Emission Halvening Period
PolyCUB is designed to sustain itself and bring yield to both the LeoFinance ecosystem and the entire hive blockchain.
The PolyCUB airdrop launch in early March saw a shift from DeFi 1.0 to DeFi 2.0 with yield optimizing goals in mind. Although, how this will be achieved wasn't really clear but an idea was projected to guide the airdrop launch.
The plan is to achieve the yield optimizing goal through management fees from within the Kingdom. This could only come during the early harvesting penalties and the fees that'll accrue will then be used to grow the system.
When you look at this pattern, you'll observe that PolyCUB may end up not meeting up with the high projected yield optimizing abilities, because this will take a lot of time and energy.
According to the @leofinance post yesterday titled: How to Exponentially Deepen PolyCUB Liquidity:
This marks a complete 180 degree turn in the direction of POLYCUB. Instead of offering Kingdoms - which only accrue value for PolyCUB PoL through 1 method (management fees) - we're deploying Vaults V2 - which accrue value for POLYCUB through 5 methods (staking collateral, wrapping fees, internal arbitrage, lp utility, governance control).Source
In terms of value creation, V1 doesn't match the abilities of V2. This is because for value to come to PolyCUB one must wait for a long while and expect management fees to be accrued before we can make significant progress.
This leads us to some incredibly important effects. With all of these new vaults, each will be paired against POLYCUB. This means that effectively, the launch of every single new vault will lead to more trading liquidity for POLYCUB on the Polygon network.Source
V2 offers PolyCUB the following methods of value accrual:
- 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 arrival of V2 doesn't actually mean that V1 has been completely eliminated from creating value for PolyCUB but came as an addition to boost the yield and values that comes to PolyCUB.
In terms of the anticipated PolyCUB emission halving process I wrote a post and in that post we're expecting the most obvious halvening period in the history of PolyCUB.
It's actually coming up by tomorrow.
Thanks.
Posted Using LeoFinance Beta
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