I'm really excited about the upcoming release of Kingdoms. In addtion to farming at CubDefi, I have been farming some on Goose Fiance and have had some experience with their vaults. Assuming what CubDefi is implementing is a variant of that, here are a few things their that we might expect, and a couple I'm less sure about, with the Kingdoms.
Optimized Auto Compounding
Kingdoms will be auto-compounding, they have already anounced that.
Based on the current APR, the system will likely calculate the most beneficial compounding frequency and will compound at that rate for all participants in the vault.
By being auto-compounding, we don't need to worry about "Should I re-invest now? Or should I wait?" The system does it for us, and likely much better than we would.
Maximized APY
By automatically optimizing the compounding rate at a much higher frequency than makes sense individually, the Kingdoms will maximize annual percentage yield. For high APR vaults, the impact of high frequency compounding is dramatic.
Drastically Lower Reinvestment Fees
Each compounding will be done for the whole Kingdom as one transaction rather than hundreds or thousands of transactions if we were all doing individual compounding. And in return, the low transaction costs dramatically increase the optimal compounding rate, again improving APY.
Earning LP of the Pair You Stake
This is one I'm not sure CubDefi will do, but is a very interesting twist that I hope they are implementing. It is possible that rather than earning CUB, we will be earning LP of the pair you are staking. So if you are staking CUB-BNB you would be earning CUB-BNB LP.
A New Leo Based Stable Coin
Again, this may or may not be coming but has been implemented in the Goose Finance vaults. In addition to earning LP, we may see the first stable coin in the LeoFiance/Cubdefi ecosystem - and we may be earning it in addition to the LP we are earning.
One Way Or Another It Should Be Great
Whether we earn CUB or LP, whether they add a stable coin or not I think it is going to be great for CubDefi and its members. Just the savings in transaction costs and increased compounding will make the Kingdoms well worth the wait.
I'm looking forward to its release and will be moving my small stake into the Kingdom! So I guess the only question is wen?
There are downsides to the LPs as well so I guess you should mention impermanent loss in addition to the tokens you stake going down in price. But yes Defi is great so long as you invest in good projects.
Posted Using LeoFinance Beta
Very true, there are big risks. Recently I moved most of my farming to BUSD-USDT LP. Not all that sexy, but pretty low risk with a sweet 70%+ APR. If they have that in the Kingdoms w/ auto-compounding I will probably move into that.
Posted via neoxian.city | The City of Neoxian
I don't know if that pool is used as much. You get more out of a LP based on how often people use it. But you are also risking more if the price moves on you.
Posted Using LeoFinance Beta
It isn't. The APR is one of the lower ones (but still in the 70% range last I checked). But having been bitten with some losses @ goose finance I decided I'd go the safer route. I don't have a ton in it yet, but it is earning me about $1/day now and I don't have much to worry about impermanent loss or devaluation of the coins I'm holding..
Yea I made a mistake about the risk since your pooling stable coins. But I don't think you get much added to your LP since I am unsure how many people will be routed through that pool
Posted Using LeoFinance Beta
Great points! I am looking forward to the release as well. Being able to have everything happen automatically would be pretty game changing. I guess time will tell where all of this is going to land. All I know right now is that I will be investing!
Posted Using LeoFinance Beta
Me too!
Posted Using LeoFinance Beta
Cool article. I'm really looking forward to kingdoms.
I think they will really help moving CUB forward
Posted Using LeoFinance Beta
I am also very excited about this Kingdoms update as it will allow me to just sit and relax while CubDefi is looking for the best yield for me.
With summer kicking it, it feels like a great plan ;D
Posted Using LeoFinance Beta
I am looking forward to it, but .....
.... wasn't it supposed to be released last week? It'd be good to know what's causing the delays :).
Posted Using LeoFinance Beta
From what Khal announced previously, the kingdom token will auto-compound with earnings from other platforms (by swapping CAKE, AUTO, or whatever is earned there for our kingdom token and then auto-compounding). We will also earn a little harvestable CUB on CubFinance.
A CubFinance/LeoFinance-based stablecoin could be interesting at some point.
Posted Using LeoFinance Beta
Yea, I think I remember that too. Really looking forward to it
Posted Using LeoFinance Beta
I could be way off base for sure. But since CubDefi is a Goose clone, and Goose implemented vaults about a month ago now, I'm speculating that the Kingdoms will based on the vaults code too. I did see a tweet where Kingdoms were referred to as vaults so could be.
Posted Using LeoFinance Beta
Yes, they are the equivalent of vaults on CubFinance. Here's where he describes they way they will work (Cub Composability section, with example):
https://leofinance.io/@leofinance/0-deposit-fee-day-composable-contracts-and-audits
Posted Using LeoFinance Beta
Thanks for that! So
So it looks like it will be earning LP and maybe CUB at the same time. That is going to be pretty sweet!
Yep, that's the main idea behind kingdoms.
Posted Using LeoFinance Beta
Only tell will tell
Posted Using LeoFinance Beta
The stable currency thing sounds good, as many investors will want stability, but as you say without stable currency or with stable currency, cub defi is the ultimate, I too hope to increase my holding little by little.
Posted Using LeoFinance Beta
I agree. It could really be a huge boost to the entire platform. The stable coin is a great idea since that will help give people an option of where to park money if they want to take a breather.
We will see what it all includes but it is great to be compounding gains.
Posted Using LeoFinance Beta
Yep, that combined with the bridge could be a powerful 1 2 punch to take the Leofinance ecosystem to the next level.
Posted Using LeoFinance Beta
Looks exciting. !LUV
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I have great confidence in CUB DEFI and surely the new feature of Kindoms will increase the interest of the community even from outsiders, thanks for the information.
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