You and Jersteemit are exactly right. Any yield that was earned previously and sold off to compound back into a kingdoms position will now be compounded into POLYCUB pairs.
This means that in a straight equation world, 50% of the PolyCub that was sold to compound positions previously will now no longer be sold (since pools are 50/50 PolyCub).
And this also means that if users compound like this, they are selling but also providing liquidity simultaneously. Liquidity builds over time and the platform gains more revenue fees through the 5 methods mentioned in this post.
It’s amazing to think about
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