The Plan
So when I first got on Cub Finance and saw an APR of around 3000% I was floored. Now obviously I knew it would come down, and it is already coming down. Currently it's floating just above 1000%. I have a feeling by mid this week if not sooner it's going to drop below 1000%. It's funny how that seems "low" when people are falling all over themselves to earn 6% or 8% with BlockFi or Coinbase, but I get it, 3000% just seems a whole lot cooler than 1000%.
Here's the strategy I'm coming at it with. So my goal is to continue rolling over my Cub until I hit a certain number, I'm almost there. At that point my plan is to make a list of about 5 Coins I want to invest in long term. At this point I'll check those 5 Coins daily, and whichever is down the most I'll swap my Cub for that coin and essentially Dollar cost average into those coins. What are those coins? I still haven't nailed that down but some things on my list are BNB, LTC, FTM, ADA, DOT, 1INCH are all contendors.
Now there is a temptation to continue plowing all the Cub earnings back into staking, however if other coins appreciate much more than Cub, there's an opportunity cost to plowing money into Cub, even with such a fantastic APR.
Again, I'm new to Cub, I suppose everyone is, but some of you may have more experience with the Defi space as a whole. Where do you see Cub going? Will there be appreciation in Cub itself to where you're double stacking ie stacking the high APR, plus seeing appreciation in the coin price, or do you see Cub sticking around $5? If you see Cub running higher how high do you think it will go? Will the value of Cub begin to come down as the APR drops? These are things I wonder about and things that will play a part in my decision to how to move forward.
So what do you think about my strategy and what is yours?
I plan on doing something very similar. I am going to be involved in pools that pay well where I am happy holding both coins (eg. bLEO BNB) and will save CUB and put it in the DEN until I am happy with the amount that I have.
At that point, I will start to play some trading games to get some other tokens I want to hold onto... bonus if they have trading pairs that I am happy with (eg. Dot BNB).
I am also looking at incorporating it into my larger strategy. As we get closer to the top, I can move some liquidity from dens and pools into stable coin pools to earn cub and retain value for inevitable downturns.