vexPOLYCUB: Bonding, pHBD, And Exchange
There is discussion about vexPOLYCUB that was brought up on the AMA. I also put together an article discussing the happenings with POLYCUB.
In this article I am going to espouse a model that I think should seriously be considered. From this, we will really start building value on a few different layers. It will help to enhance the value of POLYCUB, pHBD, and HBD.
Interdependence is a way to truly establish value. The idea of vexPOLYCUB is a strong one. However, to truly be maximized, we need to leverage it across many different facets of the platform.
For this reason, here is what I propose.
vexPOLYCUB: Multi-Layers Lock Up
Khal discussed the idea of giving people the option of moving xPOLYCUB to a longer term lock up period. His suggestion was 2 years. In return, people would get advanced voting rights along with a guaranteed return, say 10%.
Here is where we need to adapt this concept.
Instead of just one lock up period, we have three. The exact numbers aren't important for this discussion so I will just use these as an example.
1 year 8% return 1.25% voting weight
2 years 10% return 1.50% voting weight
3 years 12% return 1.75% voting weight
As mentioned I just pulled out some numbers so the tokenomics will have to be worked out but they illustrate the point.
Tokenize The Locked Up xPOLYCUB
I wrote a great deal about Hive Savings Bonds. There is no reason why the same premise can't exist here.
Since we have a time period along with a specified rate of return, we have the ability to create a bond.
In this instance, the xPOLYCUB deposited in vexPOLYCUB will deliver a token. It will represent the vuePOLYCUB in that is locked up. This means that the individual has liquidity in that the bond is a sellable asset. It can be swapped just like any other token.
Polycub Exchange
Of course, to trade the tokens, an exchange has to be built. This could be a basic layout since nothing too complex is needed to start. It basically could begin as a bid/sell platform.
The key is to develop a market whereby people can purchase the bonds. Increasing the activity over time will help liquidity. Also, it allows people to access the capital (sell) if needed/desired.
We also can have this feeding the Protocol (Treasury) by charging a small fee on each transaction. This will help to generate more revenue.
pHBD Use Case
On the Polycub exchange, the token that is used to buy the bonds is pHBD. This is an important piece of both the Hive and Polycub ecosystems.
pHBD is a derivative of HBD. This means that, ultimately, it is feeding value back to that token.
Of course, Polycub is benefitting since the majority of HBD that is mirroring what is in the liquidity pool is in savings on Hive. This is earning 20%.
What we are looking at doing here is adding value to pHBD. By making it the main token on the Polycub, activity within the liquidity pool will increase. Those who do not have the token will either have to wrap HBD (which generates bridge fees) or get it from the liquidity pool.
Any loans can pay out in pHBD, ensuring there is another use case with the token.
Feeding POLYCUB
All of this is going to keep pushing value to the POLYCUB token.
Obviously, to be involved in vexPOLYCUB, POLYCUB needs to be staked. This means that those without will have to acquire it.
At the same time, we are looking to generate more activity on the platform. A great deal of this is feeding the Protocol, revenue that will be used to purchase POLYCUB.
Since a DeFi platform of this nature is based upon USD, the higher pricing on POLYCUB is not a hindrance to newer people. For example, if $20 gets one 1 xPOLYCUB or 20, it doesn't matter to the person buying in the sense he or she is investing $20. The ROI on the money will be the same.
For people who want to be involved in the Polycub Savings Bonds, there are two choices: buy more POLYCUB and stake it or get pHBD to purchase it on the open market. Either way, the platform benefits from this activity.
Increasing Value Of The Liquidity Pools
What does a higher POLYCUB do other than make HODLers happy?
The greatest value to the platform is the fact that it increases the value in the liquidity pools. Since a number of tokens (pHIVE, pSPS, wETH, wBTC) are paired with POLYCUB, an increase in the token value provides depth to the those pools.
Obviously, as the price of POLYCUB increases, bringing most of the platform higher, the returns start to increase. This is where the activity becomes the driver of value. Instead of tokenomics we use business building principles to generate consistent, yet ever growing cashflow. Much of this will be fed into the buying of POLYCUB, pushing value to an even higher level.
So there you have it.
What are your thoughts? Let us know if this is something that you feel should be built on the platform.
Post your ideas in the comment section below.
If you found this article informative, please give an upvote and rehive.
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Love the idea of vexPOLYCUB (btw, can anyone explain how this prefix come around?), but not sure how the details should be designed. Seems complicated. I'll leave it to someone smarter. :)
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No idea where the prefix came from. However, it is a good idea to have time locked options in return for something else.
However, the point of this article is to build upon it to a much greater level.
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Does the prefix, (or the name) matter?
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vexPolyCUB is interesting but I don't know if there are that many people who want to lock up their tokens for so long. Of course, I don't mind because I don't plan on selling PolyCUB anytime soon.
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That is the point of the bonds. Here you have a way to remain liquid yet still enjoy the rewards from the locking period.
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the truth is that developing that market to exchange our tokens is great and getting the return in advance would make many more new users interested in leaving their savings and start making good profits
The vexPOLYCLUB idea is interesting, although I am not too sure how many people would actually want their tokens locked for two years. Perhaps 1 year would be a better option.
pHBD is awesome and I like that it might be the main token on Polyclub.
The big take from this to me is that nobody is resting on their laurels, and use cases are being investigated and more ways to get liquidity are also being explored.
That brings confidence, the more the confidence the more the
investments will come.
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It should be the main transactional token on Polycub. On the platform, POLYCUB is still the primary focus.
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Okay that makes sense, thank you!
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I would love to see one more option, for some people not so brave to go with 1 year lock:
0.5 year X % return, Y % voting weight
1 year 8% return 1.25% voting weight
2 years 10% return 1.50% voting weight
3 years 12% return 1.75% voting weight
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The numbers and the options can be expanded as much as desired.
Consider how many US Treasuries there are. We have everything from a few weeks through 30 years.
So we can add as many layers as deemed desirable.
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This is the direction that will enlighten the community.
This is use case after use case for Hive, HBD and Leofinance DEFI.
I know reading this post will not be enough to be fond of the idea.
We are growing with the speed of time.
The conversation is different these days.
!BEER
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That is why I am proposing this. To build a great deal more that integrates a great deal more of the platform and enhances what we are already doing.
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I like your proposed lock up for vexPolycub, at least we get options.
Having exchange within Polycub and using pHBD as the main token is a great idea too. That would be win-win in many aspects (re: additional source of revenue too for the protocol, use case for HBD)
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BEER
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Utility versus Tokenomics as a driver of value...
Does that sound like an appropriate summary statement?
This porposal is complicated...
...but if I understand correctly...you are creating a business case or an additional use case for PolyCub and pHBD, and your supposition is that this use case would drive demand for these assets, because these use cases generate more of same asset, but over lockup time periods.
Which I suppose gets us past the traditional earn and dump activity, which drives down token price. But potentially leads to lock-up end period dumping, but does kick dumping down the road, and if the token values goes up significantly within that time period, people/investors may be relunctant to dump for fear of missing out on more appreciation.
Or this could feed collateralized loans, if investors need cash.
Thus the project adds a nother driver of value independent in some ways from pure tokenomics as a driver, and utility becomes a driver.
I need to read this again, a few more times to wrap my head around it and understand. But thats my first time through read summation.
Did I miss something?
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I think variety is the spice of life. So it should also be so for investors. Hex has shown us there is demand for this specific type of variety, so I am all for something similar here.
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