PolyCUB
We're over two weeks into the launch of PolyCUB and the results have been pretty amazing so far. The block rewards have come down from five in the first week to three this week, but that's still a lot of new PolyCUB coming into the market every day. Fortunately, the LeoFinance team has created a platform where that is actually a good thing rather than a negative.
The idea is to get as much of the PolyCUB distributed as possible, as soon as possible, in order to attract as much TVL as possible early in the game. The more money that flows into the system, the more value the Protocol owned Liquidity (PoL) pulls in and the more it will then be able to sustain the price and growth of the platform overall.
While this is happening, the ratio of PolyCUB to xPolyCUB continues to climb meaning that it is taking more and more PolyCUB to buy one xPolyCUB. Right now that ratio has ascended above 15 and, while it has slowed down, it continues to climb at a very steady pace. It won't be long until it will take 20 PolyCUB to get 1 xPolyCUB. Better yet, each xPolyCUB owned will be worth 20 PolyCUB. So if you managed to scrape together enough to get 100 xPolyCUB over the first two and a half weeks, you're actually sitting on over 1500 PolyCUB right now on your way to over 2000 and growing.
Like I said, pretty amazing, especially if you were able to get that xPolyCUB early while the ratio was still in the low to mid single digits. In the meantime, there are more pieces being added to the puzzle as we speak that will continue to incentivize long-term hodling of xPolyCUB, but that's a topic for another post.
CUB
In the meantime, where does all of this leave CUB? Welp, in my opinion, right smack dab in the middle of everything. CUB has become the proverbial red-headed stepchild in this equation. When PolyCUB first launched, many people sold their CUB in order to put it into the new PolyCUB. While I get the reasons, they were also selling CUB for 40 cents or less and buying PolyCUB well over $1.00, in many cases $3-$5.
It hasn't been a bad move, and depending on timing, it could have been a very good move, but I don't think it's been a complete no-brainer. Part of the reason is that selling your CUB loses you your "free" airdropped PolyCUB, all of which has no penalty for staking/selling. So it's basically like getting double what you're getting in the farms on PolyCUB. It also costs you potential future airdrops in upcoming launches when CUB expands again into other chains like Thor, Avalanche, Terra, Fantom, etc. There is obviously time to buy it back but for how long?
Math--PolyCUB vs CUB
Let's try a little math. Say you had 10,000 CUB when PolyCUB launched. That entitled you to 850 PolyCUB in the airdrop, divided by 60 days equals 14/day. On day 1, you get the first airdrop of 14 then sell all of your CUB for 40 cents ($4000). You then turn around and buy PolyCUB on the market for $4 and get 1000 PolyCUB. You take that and put it in the xPolyCUB Kingdom at a 2 ratio so you end up with 507 xPolyCUB counting your airdrop. Right now that is worth roughly 507 x 15 x $0.75 = $5703.75
Let's compare that to if you had done nothing but collect your airdrops and stake those into xPolyCUB. By my math you'd have roughly 40 PolyCUB since while you were getting 14/day, the ratio continued to climb every day so the xPolyCUB you could get would go down. CUB is paying 60%+ APY so your CUB would have grown from 10,000 to roughly 10,210 over the last 16 days so...40 x 15 x $0.75 = $450 in PolyCUB and 10,210 x $0.25 = @$2550 so roughly $3000. This, of course, factors in the price moves which, for obvious reasons, matter, but had CUB stayed at 40 cents, then you'd be at around $5000 right now versus the $5700 your PolyCUB is worth. PLUS, you're still sitting on all of that CUB for future airdrops.
Again, if you were lucky enough or quick enough or skilled enough to make these maneuvers in the frenetic first few minutes after launch, you definitely are coming out ahead, some farther ahead than others. But if you're like me, and aren't incredibly comfortable with trying to do anything in crypto fast, then I'm perfectly happy with what my CUB holdings are providing me.
Namely, I'm building a small stack in xPolyCUB (for free), I'm getting 60% on a platform I know and trust, AND I'm continuing to set myself up for very nice airdrops in all future platforms. PLUS, as @edicted alluded to in one of his recent posts, if and when PolyCUB proves itself to be everything the Leo team thinks it can be, then chances are they will port some of those mechanics into the CUB platform as well which will give it even more value down the road.
Fortune favors the bold so if you made some big moves on PolyCUB, you're being rewarded. But discretion is also the better part of valor so if you're more interested in growing and protecting what you've got while still being able to participate in the new platforms, then you're not doing too badly either.
Future platforms
Here's another interesting way to look at CUB. Let's assume the next platform launch is ThorCUB. If PolyCUB continues to thrive, what do you think will happen on that launch? It's going to be insane. The price will probably go even higher in the early stages as people clamor to get in while the ratio is low. Consider, if you buy 1000 ThorCUB at $5 and stake it as xThorCUB when the ratio is 2, you'll get 500 xThorCUB. If the price drops to $2 a couple days later but the ratio climbs to 5, you'll need to buy 2500 ThorCUB to convert to the same 500 xThorCUB. But what if the price on launch goes to $7, $8, even $10? Which it could if by that time xPolyCUB has shown that it is indeed the "Bitcoin of Defi". Now you're looking at having to spend who knows how much to get in early and take advantage of the low ratio. You then run the risk of overpaying in the short-term if the price comes crashing back down. Or, if you wait for the price to correct before buying and it only drops to $3 before starting to climb again, you may be buying there with the ratio already up to 4 or 5 from all the stakers paying the fees to convert.
Let's do math again. Using $10,000 say you jump in early and get 1500 ThorCUB at $6.67. At a 2 ratio that nets you 750 xThorCUB. Or let's say you wait and the price drops to $3 but the ratio goes to 5. Now your $10k buys 3333 ThorCUB divided by the 5 ratio nets you 667 xThorCUB.
Now, instead of trying to navigate the crazy waters of the launch, what if you buy 40,000 CUB for that same $10,000 at $0.25? At the same 8.5% airdrop we're getting on PolyCUB, that would mean you'd get 3400 divided by 60 days equals 56/day. At the same ratio of 2 you're getting 28 xThorCUB on day 1, probably another 20 on day 2, say 14 on day 3, maybe 10 on day 4 and then we'll say an average of 5/day for the next two weeks. By my math, that basically gets you 140-150 XThorCUB again, for free, over the first 2.5 weeks and you don't have to take any of the crazy risks with trying to figure out the best time to buy price-wise vs ratio-wise.
In the meantime, your CUB is still earning you 60% and you are still growing your stack even bigger for the next launch.
Strategy: past and future
In a nutshell, here's what I did, and what I'm probably going to do going forward. Prior to launch, I followed the instructions and set up my wallet(s) for the new contracts. I then got into the pLEO/MATIC farm so I could continue to keep my LEO exposure and also farm the high emissions on the new platform. I converted my airdrops to xPolyCUB and paid the penalties to do the same with my farming yields. And finally, when the price dipped down to around 70 cents the first time, I bought a chunk of PolyCUB and converted it to xPolyCUB. I think the ratio was 5ish, give or take, at the time. I continue to convert my airdrop to xPolyCUB but am almost to the point where I will just be stacking my farming yields to wait for the 90 days. At that point, I'll either put it into the xPolyCUB Kingdom as well, or possibly use it to fund any purchases I want to make on the next platform. OR, I may just use it to buy more CUB enabling a bigger airdrop on the next one and making 60% while I wait.
For me, while I might be missing out on optimizing every dollar I have, I'm also not exposing myself to the same risk. And it's not like I'm not participating. I've got a decent chunk from the airdrop plus my purchase so I am definitely getting rewarded. I kind of view it the same as timing the market. No one ever sells at the ATH or buys at the ATL. The best you can do is decide whether you're okay with the price it's currently at and make your decision. That's why dollar-cost-averaging is usually the best strategy for buying and selling positions. Buy/sell some, wait, and then buy/sell another piece and wait again. The market will do what it does and hopefully you were right. But if you weren't, at least you have the opportunity to take advantage of it by having more bullets in the arsenal.
That's what I'm doing by owning CUB. I'm able to participate in a meaningful way but I'm also able to be patient and not make hasty decisions because I know I'm already in with "free money". Of course, if PolyCUB ends up mooning and goes to $10 or something, then I'll wish I had more. But, like I said, it's not like I'm not participating. I will definitely be profiting if and when that happens. Just not as much as if I'd gone "all in". That said, if CUB goes to $1 that's a 4x which would mean PolyCUB would really need to moon to match it. It goes both ways.
So, CUB or PolyCUB? For me, it's both.
This is obviously not financial advice. You do you and do your own research. These are just my thoughts on using the two platforms.
Thanks for reading!
Posted Using LeoFinance Beta
This is amazing. You have done the maths. So all we need to do is buy and staked. I so appreciated, it better if I just buy cub and staked it. Then wait and see what the price for polycub is. And the ratio can determined if just stick to the cub staking for now. As the airdrop is still continued. I have to carry on reading it a few more times. I'm also doing the pleo/ matic farm, but the harvest is not that much. So I just let this one accumulate !
Yes, buying and staking CUB at least gets you in the door for the new platforms and it's a lot less complicated. That said, I think it's important to try and participate in the PolyCUB platform as well since the mechanics the Leo team has employed could lead to some pretty incredible numbers long-term. But, in my opinion, the first step is CUB. It's easier to learn, it's been proven to work for over a year now, and it gets you into the future airdrops. Plus, it's very cheap right now so your dollars can go a lot further in getting you a decent stake.
Posted Using LeoFinance Beta
I've been claiming my PolyCub airdrops periodically after the confusion I had initially. Recently I had some wallet woes, but after I resolved the situation I bought more CUB to stake in the Kingdom.
Recent I discovered pools at PolyCub with astronomical APRs-- not APYs, APRs-- and I was trying to figure out how to use CUb to take advantage of them. After reading your post, I decided to leave my CUB where it is, stake the pCUB I have, and use other cryptos to take advantage of those astronomical APRs.
With CUB being the foundation for all future activity, I will stack CUB when I can; at some point, I'll move some CUB over to PolyCub or whatever comes after it.
Posted Using LeoFinance Beta
That's what I'm doing. I'm stacking my CUB and just throwing my PolyCUB in the xPolyCUB Kingdom. If this thing works, then the next one will probably be even better so I want to have as much in CUB for the airdrop as possible.
Something just occurred to me....
Although I like the rewards I'm earning in the diesel pools where I have positions, I can get more out of my rewards if I move them over to Cub Finance and PolyCub.
I will maintain my positions in those diesel pools, but I will reset my rewards to zero to divert them into Cub and/or PolyCub. How crazy is this?
Posted Using LeoFinance Beta
I don't think it's crazy at all. Personally, I'm leaning more towards CUB than PolyCUB. I'm not against PolyCUB, but I'm just not convinced they've got it solved yet. I just think CUB is the safer of the two. If PolyCUB does indeed work, then the next one will probably be even better so...I'll participate in PolyCUB in case, but I'll keep stacking CUB for the next one.
Posted Using LeoFinance Beta
I'm still trying to figure out DeFi 1.0, so it will be a while before I understand DeFi 2.0 and PolyCub. I'll do more with PolyCub later, but for now I'll focus on Cub Finance as well.
As for resetting my LP rewards to buy more CUB, I'll need to find a good seat cushion first; it will take a while to convert those rewards to SWAP.HIVE and then to CUB.
Posted Using LeoFinance Beta
Nice one @dagger212. Those are some deep calculations, Thanks for doing them for me. Even for me, it's both but I am betting high on CUB because it's the base layer of CUB Finance DeFi stack. CUB Holders will get direct or indirect value with each launch.
After yesterday's roadmap reveal I decided to buy some PolyCUB to stake it in xPolyCUB. That made so much sense because bonding & collateralized lending will open new doors for LPs to get rewarded. Keeping some funds to buy more once the airdrop finishes. Hopefully, the price of PolyCUB would go down. If not, it's my bad luck and good luck at the same time. 😋
Posted Using LeoFinance Beta
Personally, I agree with you. I think the "safer" play is CUB. The returns there have a great chance to be spectacular as well, especially if they do decide to modify it down the road and add some of the successful (yet to be determined) features from the new platforms.
In the meantime, you can buy it at the lows right now, make 60%, and still participate in this airdrop, not to mention the future ones.
I realize there's only so much money to go around but it seems to me CUB is definitely a place people should be looking to put some right now. I doubled my stake right before the airdrop. Of course it was mid .30s at that point, but it doesn't bother me because I liked the price and still think it will head north of $1 at some point. I'll probably continue to add to it here and there as funds permit.
Posted Using LeoFinance Beta
Awesome, me too. Keep growing that CUB stake slowly to get value from everything that is added on top of it. I am betting on it for the next 5 years at least. It should be way above $1 hopefully by then. Let's see how many airdrops we get until then. Should be life-changing returns. ✌️
Posted Using LeoFinance Beta
Seems you are on a right path :)
I do them both too
POLYCUB:
and CUB:
Beware, this is NOT a financial advice. DYOR !
Ha! Another 0 (or 3) and I'll be right there with you! :-) Thanks for reading! Much appreciated.
Posted Using LeoFinance Beta
Read how this all have started with Toruk
Posted Using LeoFinance Beta
This is pretty much how I'm approaching the entire Cub ecosystem too.
The never being able to buy the exact low and then sell the exact high analogy is a good way of putting it.
All we want to be doing is continuing to take large chunks in the middle.
Which we are by earning still ridiculously high yields and setting ourselves up for future releases.
Keep doing what we're doing :)
Posted Using LeoFinance Beta
I know some people are comfortable zipping money all over from platform to platform and making transactions at a whim. Not me. lol I still hold my breath every time I hit that final button. Even after doing all the double and triple checking. It's almost OCD.
I know CUB and I trust the platform. The returns generated there in the last year have been nothing short of incredible and they continue to pile up. I'll just keep stacking and participating in the new platforms as they come.
I think I'll just stick to CUB and leave my airdrop in the xPolyCUB. It's what I decided when PolyCUB launched and I will just prepare for next time. Obviously, I feel FOMO for missing out on the farms but it's still free money no matter what.
Posted Using LeoFinance Beta
Well, I think that's one of the great things about this whole thing; if this one works, we're going to get to do it all over again in another few months.
But, as I pointed out in my post, if this one works, the next one will be crazy. That's why I'm still stacking my CUB. No matter what happens at launch next time, I'll still get a decent amount via the airdrop on launch so at least I'll be able to take advantage of the low ratio with something.
We'll see. Still a long way to go before we know for sure how it's all going to pan out. Looks promising now though, that's for sure.
Posted Using LeoFinance Beta
Quite an analysis. I will be honest, at this point, I am not thinking about this anymore. Just putting my money into cub and forgetting it because it is at a price I am comfortable with now. I panicked and sold when cub plummeted last year. Now I am just using putting my earnings into cub. It seems like the best thing to do at this point.
Posted Using LeoFinance Beta
There are definitely worse things to be doing. I'm continuing to add to my CUB as well. I'm also thinking the price of PolyCUB may go lower before the PoL kicks in so I'll be looking to maybe buy some PolyCUB if it gets cheap. Doing more math....if I had $500 I wanted to put in PolyCUB, I could do it now and get 739 PolyCUB, divided by the 16.5 ratio and get roughly 45 xPolyCUB. If the price drops to say 50 cents, I could get 1000 PolyCUB with let's say a 20 ratio. That still gets me 50 xPolyCUB as opposed to 45, and I don't think the ratio will move that fast. Just theory-crafting. The price may not drop, the ratio may move faster than I think, who knows? Just trying to have a strategy for different scenarios.
In the meantime, I'll just keep stacking the CUB and upping my airdrop little by little. Won't have much of an impact on this one anymore, but it will definitely enhance the next one. Every little bit extra you can get early is going to make a big difference down the road.
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I have been collecting my PolyCUB, staking some of it, selling some into other farms, and buying every CUB dip. PloyCUB is an experiment that will repeat if successful. CUB will get the same treatment if it works, and we will see more airdrops than we know what to do with. I like your strategy, it is simple and will likely serve you well.
That's the plan. Simple is usually best for me. lol
Posted Using LeoFinance Beta
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