Major Update to CUB IDO System | IDO #2, #3, #4

in LeoFinance12 days ago

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The IDO technology we built for CubFinance worked flawlessly from a mechanical perspective. CUB-BUSD went in, CAKEPOP went out. The round was opened when we wanted it to open and it closed at the exact time we wanted it closed.

So with all of this in mind, the question everyone's asking is: why CUB not moon overnight?

In this post, we'll examine the aftermath of IDO #1 and also talk about the future of IDOs on the CUB Platform and how they are set to radically improve the tokenomics, growth and sustainability of CubFinance.


CUB IDO #1: CUB-BUSD

IDO #1 utilizied our CUB-BUSD model for fundraising. This model is utilized by many of the top BSC platforms who have built launchpads.

Our technology performed flawlessly but the tokenomic impacts weren't quite as fast as everyone wanted them to be.

Yes, we burned nearly as much CUB as we had burned since the very beginning of CubFinance.

No, the CUB price didn't moon overnight.

In defense of this tokenomic mechanism, consider Bitcoin Halving events. Every 4 years, BTC halves the block rewards. This means that incoming supply to miners (inflation) is reduced by half every 4 years.

The price impact is never priced in right when BTC halves. Theres some news impact and people prepare for it by buying BTC so there is a bit of an impact (such was even seen when CUB went up to $0.75 pre-IDO #1).

The major impact on price for BTC halvings, however, doesn't come until months or even years later.

CUB's first IDO offers a similar impact. 185,000 CUB was removed permanently from the supply from this first IDO. That means that 185,000 CUB was removed from the Kingdom and from the CUB-BUSD and CUB-BNB farms and utilized in the IDO. That CUB will never flow back to the people who participated in the IDO.

That CUB can never hit an exchange.
That CUB can never be used for LP rewards.
That CUB can never be staked in the Kingdom.

It means that existing CUB holders now hold a larger % of the total supply relative to what they had before. 1 CUB is worth more in terms of % ownership post-IDO than pre-IDO.

The impact of this is not expected to be overnight. It's baked-in to the ecosystem. When there is eventually a boost in demand, there is less CUB to be purchased and thus, an equivalent boost in demand will have a much larger positive impact on price.

Still, Wen Moon?

This still begs the question - wen does the moon for CUB come?

In the long-run, IDO's will continually burn more and more CUB. Dwindling the supply and doing more than combat inflation: CUB will invert and run deflationary when you work out the tokenomics until the end of this year.

So why doesn't CUB moon on this news?

The first IDO showed us that a CUB-BUSD IDO actually has a short-term negative impact on price as CUB Kingdom hodlers asymmetrically pool their CUB into the IDO by taking 100% CUB, selling 50% into BUSD and then depositing the 50% BUSD + 50% CUB.

From this point forward, we don't plan on holding anymore CUB-BUSD IDOs. This first one was a nice tokenomic test to see what happens during an IDO event both in short-term impacts and (what we have yet to see) long-term impacts from burning massive quantities of CUB.

CUB IDO #2, #3, #4

The next IDOs that we have scheduled will utilize a new model for IDOs. In fact, it's quite similar to the original IDO model we built for #1 with 2 key changes:

  1. Instead of CUB-BUSD deposited, it's 100% CUB
  2. Instead of IDO's XYZ token distributed at the end, it's an LP Token with 50% CUB-XYZ token

As a reflection token, CakePop didn't offer any external pools for CUB.

The next IDOs will all have liquidity pools and their own farming economies.

In fact, the next major IDO (outside of Polygon CUB) is an extremely impressive AMM (Automated Market Maker) project. It's designed very similarly to Biswap & Pantherswap: allowing users to refer each other in to the AMM and earn back % of the fees paid in swaps.

Why is this important for the CUB-based IDO?

The point of these platforms coming to CUB for an IDO is so that they can seed initial liquidity in their pool and distribute their token to a wide and active community.

Originally, the CUB IDO mechanism would allow them to raise BUSD for their LP and then they would go out and match that BUSD with their own token to create the first Liquidity Pairing and deposit raised BUSD + their token.

With our new model, these platforms will raise 100% CUB. 50% of the CUB will get burned and that 50% of value will get replaced with XYZ token from the IDO.

The IDO mechanism will then LP the CUB + XYZ tokens and create the first liquidity pool pairing for the token that's running the IDO.

This allows the target IDO platform to complete their raise and gain initial liquidity as planned. Instead of that liquidity coming in the form of BUSD, it's coming in the form of CUB.

Example:

  • 1,000,000 CUB is the target raise of IDO #2
  • 1M CUB is raised in the IDO
  • 500k CUB is burned permanently from the supply
  • remaining 500k CUB is paired with an equivalent value (500k worth of CUB) in IDO XYZ token
  • this creates a liquidity pool with 500k CUB + ___ XYZ token from the IDO
  • users claim CUB-XYZ LP tokens from the IDO vault on CubFinance

The amazing thing about doing this with new farming platforms is that they have their own farming incentive pools. When CUB is added as the main base pair for their token, the CUB-XYZ Farm on their platform will have massive Liquidity Pool incentives for LP deposits.

For this IDO Project that's building a Pantherswap-like AMM, this means that IDO Participants will be highly incentivized to take their newly acquired CUB-XYZ LP Tokens and LP them on XYZ platform's farm.

Creating Continuous, Automated CUB Reinvesting

We'll also be able to spin up a Kingdom contract that utilizes their farming incentives to autocompound back into CUB-XYZ token.

For example, if CUB-XYZ LP tokens are paying out XYZ token rewards on their farm, then our Kingdom contract will allow users to deposit CUB-XYZ LP tokens on https://cubdefi.com/kingdoms.

Once deposited, our Kingdom contract will deposit those LP Tokens on their farm, earn XYZ token rewards and then autocompound those rewards back into CUB-XYZ tokens (selling 50% of the XYZ token rewards into CUB and then pooling both halves back as the base asset).

This creates a continuous, automated CUB reinvesting mechanism for anyone sitting in the Kingdom.

Snowball Effect of IDOs

I think this new model is a great lens into our Ethos as a project: release features and rapidly iterate and improve them. We built a super impressive IDO Mechanism and that performed exactly as expected from a technical perspective.

The tokenomic impacts weren't quite as great in the short-term (even though we believe the long-term impact of burning that much CUB still remains).

So, we dissected IDO #1 and went back to the drawing board. This led us to our new model for IDOs that we discussed here in this post. 100% CUB deposited, 50% CUB burned, 50% CUB matched and LP'd with target XYZ IDO token.

With our upcoming IDO Partners, this is going to be an amazing thing to watch. 4/5 of them are all farming platforms with Liquidity Pool incentives.

What this means is that once all 4 of these IDOs are complete, there will be 4 new liquidity pool pairs for the CUB token on Binance Smart Chain.

What's even better? ALL 4 of these new Liquidity Pool Pairings will have externally funded liquidity mining incentives that are paid out by these 4 separate platforms.

What's even better than that? ALL 4 of these new LP pairings will have Kingdoms on the /Kingdoms page which will autocompound the XYZ farming rewards back into the -CUB base asset. Creating an autonomous and continuous buying pressure for CUB.

What's even better? The 50% CUB that we want to burn from each IDO STILL GETS BURNED. We're not sacrificing anything with this model. In fact, it seems better from all perspectives and we've already discussed the change from raising BUSD to a distributed CUB raise model and all of our upcoming IDO partners have signed off on the change.

In last week's AMA, Neal mentioned this idea of snowballing the amount of CUB that gets burned... creating an exponentially deflationary model for CUB.

Despite the other shortcomings of IDO #1, we still burned 180,000 CUB from the supply. With these scheduled IDOs, we're going to burn CUB to the tune of MILLIONS of CUB. We're talking about anywhere from 30-75% of the existing supply of CUB.

As each IDO burns CUB, the next IDO will become more highly anticipated. As that IDO is successfully funded, the next becomes that much more anticipated. As the success of all these IDO funding rounds makes waves in the small-mid-cap BSC platform niche, there will be dozens of projects knocking on the doors of CUB asking for similar IDOs.

This is an incredible time for CUB and the Launchpad branch of CubFinance is just getting started!

Kingdoms brought CUB sustainability through superior cross-platform farming mechanics.

IDOs bring CUB exponential value through collaboration, burning of mind-boggling amounts of CUB and new farms with external LP incentives and value capture.

 

 

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Posted via proofofbrain.io

Theory sounds great as always with Leo and Cub projects.
Unfortunately in real life that's not the case.

Posted Using LeoFinance Beta

I suppose the alternative could be to theorize on nothing, build nothing and then have nothing to complain about.

Although, that does sound boring. I think we'll stick to lofty ambitions and continuous implementation and iteration on what works and doesn't work.

Posted Using LeoFinance Beta

This sounds like a much better short AND long-term proposition for the value of the CUB token. How big or active are the communities for these new IDOs? Can we expect a fairly substantial group of them to onboard into CUB so they can participate in these IDO launches? Or is it all still mostly going to come from our side?

I mean, it's all well and good to burn all that CUB, but at this point, it seems like most of it is OUR Cub. It would be nice to see that outside money is coming in, buying up some of the CUB, and then having it burned alongside what we contribute.

Posted Using LeoFinance Beta

"How big or active are the communities for these new IDOs?"

It ranges, some have no community, others small and 1 is relatively large and active already.

We need to keep in mind though: as much as small-mid cap projects are coming to us for funding, they're mostly coming for the community we've got. Their goal is to get initial growth to take their platform off the ground. IDOs are for tokens that haven't even launched yet, so there's a dynamic there that attracts new projects that may not have any following yet.

"I mean, it's all well and good to burn all that CUB, but at this point, it seems like most of it is OUR Cub"

In a zero sum environment, I'd also say the same. The thing is, IDOs are just an opportunity to buy into a new coin before it's publicly listed on exchanges/DEXs.

Many seem to be thinking that people are just dumping CUB into an IDO vault and it disappears and they get nothing in return. This, however, is not the case.

With IDOs, there is a potential to generate a return or take a loss. It's a DYOR event where users can choose whether or not they want to "place a bet" on one of these IDO currencies in an attempt to generate upside.

Obviously it would be fantastic to have new buyers for CUB IDOs. They'd have to first buy CUB (driving up the price), then spend that CUB on the IDO (burning it from the supply).

Our goal will be to drum up more attention over time about these IDOs. As we have more of them and build a track record of (hopefully) big success stories from IDO -> Launch -> Token Appreciation -> CUB IDO Participant Gains, we'll be able to utilize this track record as a proof of value to take around the DeFi space and do marketing.

This marketing would be aimed at attracting new IDOs and also aimed at teaching people that there's an opportunity on CubFinance each time there's an IDO and maybe they should buy a little CUB and participate.

Posted Using LeoFinance Beta

I completely agree, which is why I believe that now is the time for marketing at a monstrous level.
I've made a post about it on my profile,

My thought is that the biggest growth margin in CUB's economy on the IDO side is summed up as follows.

  • Marketing that attracts external users

  • External users buy CUB

  • If external customers see fit, they invest in IDOs

  • CUB experiences a significant deflation due to IDOs and a very high increase in demand due to new users interfacing with us.

  • CUB Moon

But we need very strong marketing to achieve these results.

I agree, we've managed to build a lot of amazing features for CubFinance and it's time to start spreading the word about a legit mid-cap DeFi platform that has a track record and is continually adding new features.

The time is now to create great educational content, do organic and paid marketing and generate some attention and TVL back to Cub for IDOs, Kingdoms, etc.

The best source of marketing we have is organic marketing done by the LeoFinance community:

  • Creating content about CubFinance
  • Sharing content about CUB on all social media platforms
  • Word of mouth
  • ..

Posted Using LeoFinance Beta

Khal I really do have a lot of respect for you and I want to write this not as an ass-kiss but because it is something I really feel. The project is extraordinary and despite the price has dropped dramatically since I made the first investment in CUB six months ago, I feel safe and I'm sure it will go to the moon, but I also believe that it should be helped in a more pronounced way than what we have done so far (I speak only of marketing, of course).

I understand what you're saying and I agree with it completely, but unfortunately our limitation is that with this current marketing strategy we remain in the family, I in my small way have written and will write content about CUB, I share on social media and I talk about it by doing onboardig talks with my friends, and I'm sure that this is done to the highest possible level by the other guys as well and certainly in an even better way, because we are in love with CUB and when I talk about it I still talk about it in an extremely enthusiastic way.

But now I think it's time to not only invest in ourselves and our family, but to reach out to the outside world that doesn't have a clue that we exist, from my point of view the best marketing tool is YouTube and sponsor paying creators dealing with cryptocurrency, maybe for other guys there are other strategies that are just as good or better even, but I think now is the time to do this.

I would never dare to say how to run the project, let's be clear, my ideas are just expressed as they come to my mind, but I think it's time to expand our family also by paying people outside of us to talk about us and to make us discovered.

If there was a marketing fundraiser of this kind I would be willing to donate whatever I could.

If a commission was put on the proceeds of CUB for this reason I would gladly pay it.

If a portion of the CUB earmarked for burning was taken even paltry in IDOs to cover the marketing campaign I would agree.

(Completely random ideas that came to mind this minute and maybe incredibly stupid)

But I think it really is time to turn to the world and push to be discovered even by paying professionals in marketing.

Posted Using LeoFinance Beta

Good explanation on things, I had it in my mind for some reason I don't know why that funds where pooled and then sold so we would see a massive spike once the IDO got fully funded and closed out. That was a mistake on my part and misunderstanding on me. DeFi is still new to me and I'm sure a lot of people but this layout and moving 100% CUB plus having external pools sounds very promising! Looking forward to the next IDO.

Awesome! Thanks for breaking it down. Expecting an immediate pump in price was delusional to me, even when BNB gets burned, it hardly tells on the price of the token, so there was really no difference here, likewise the Bitcoin halving example stated. We move💪🏻

Posted Using LeoFinance Beta

Always onward! Our entire project Ethos is build, implement and iterate. Constant improvement

Posted Using LeoFinance Beta

I think the key point to have the CUB buying pressure is higher APR in CUB-XYZ LP farming and Kingdom :)

Posted Using LeoFinance Beta

Great explanation. Nice that you could try the system out with a relatively small IDO and now adjust/perfect the system according to the experiences. This is how development should be done!
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Great to see such a fast adaptation to the results from IDO #! and the ability to switch it to a new model that impacts both the short term, but has effects permanently as well. Finding the sweet spot is something that CUBFinance looked at with the first IDO, the team learned from it and adapted the right away. This only shows the capability of the team and it just builds trust!

Posted Using LeoFinance Beta

It seems to me an improvement and in addition to pleasure to see that the second IDO is 4 times bigger than the previous one.

Posted Using LeoFinance Beta

This sounds like a much better model and an incentive to keep the IDO teams interested in Cub. I am sure I am not the only one disappointed by Cakepop. Yes, it went very well, especially as a proof of concept. But, I am disappointed with the team behind it as they seem to have just cut and run after they got what they wanted from the Leo community. Their Lack of communication on the platform is insulting.

Thank you for setting up the Cakepop/Busd farm. Is there any tutorial on how to set it up? I can see my Cakepop in my wallet on Pancake but it does not show up in my metamask wallet while on Cubfinance. I am still learning how to work with these new IDOs.

Posted Using LeoFinance Beta

Cub is less than a year old and Khal and his team are always working on improvements, and evaluating what works and what doesn't to improve.

A large burn is about cutting supply, new IDO create cross platform marketing and brand awareness and DEMAND as much as the reduced supply.

There are so many defi projects right now, but over time the strong and the dedicated projects will slowly take over market share.

Posted Using LeoFinance Beta

❤️🦁

It's always important to work fast, implement and then improve as we learn and the industry evolves.

"There are so many defi projects right now, but over time the strong and the dedicated projects will slowly take over market share."

Absolutely! As the DeFi industry matures, it will continue to consolidate to the core, pillar platforms in the industry. We'll keep moving the ship to position CUB as one of these platforms!

Posted Using LeoFinance Beta

For some reason the exchange / liquidity tab doesn't load for me in Cub Finance the last couple days? I'm using Opera and also it doesn't load in the Trust Wallet either. This just started the last couple days.

Posted Using LeoFinance Beta

You are right thank you for sharing this Post.


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Posted Using LeoFinance Beta