PolyCub Bonding helps make Polycub special or unique.
Leofinance founder, Khaleel Kazi, posted that the release of PolyCub Bonding was imminent, so probably next week since he doesn’t normally launch new projects on a weekend. So this is a post explaining one of the new features called PolyCub Bonding. Which I think is another thing which distinguishes PolyCub from the majority of DeFi programs.
PolyCub Bonding
I think this is best explained by comparison to buying United States Treasury Bond.
United States Treasury Bond
When you buy a 1000 US Dollar Treasury Bond you pay the current face value of the bond, 900 US Dollars. If you hold that bond to maturity, a word which means a period of time like 30 days or 30 years, you can then turn it in for 1000 US Dollars. This means you have purchased this bond with 900 US Dollars, and it entitles you to collect 1000 US Dollars at a later date.
The Bond ROI or Return on Investment is 10 percent.
PolyCub Bind
- PolyCub Bonding can be explained in a similar way.
- You buy a PolyCub Bond for 94 PolyCub worth of LP tokens, and if you hold it to maturity, you can turn it in for 100 PolyCub.
- The Bond ROI or Return on your investment is 6 percent.
- ‘The maturity period for PolyCub bonds is not 30 days or 30 years, it’s 7 days.
The PolyCub User Interface
In Khal’s post he showed us the new User Interface, which looks intuitive and crisp.
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- As you can see in these pictures you will now be able to buy PolyCub Bonds like WBTC-WETH SLP Bond, with your WBTC-WETH Sushi Swap LP tokens, which also called SLP tokens.
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- You buy the Bonds at a discount, or less then their value at maturity, which is in 7 days, and the discount is listed on these diagrams as the ROI or Return on Investment.
- You can sell the bonds early, before maturation, but then you loss some of the return which goes to the person who bought them.
- This how US Treasury bonds work, and all other bonds work.
- If you hold them until maturity you get the maximal return.
- If you sell them before maturity your return is smaller.
- I think that’s a short, simple conceptual frame work for understanding PolyCub Bonding.
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Polycub bonds is going to be amazing. That's is a great rate for 7 days investing. 94 polycub becomes 100. But you wouldn't really want to sell it before maturity and pay a penalty. I still have some SLP tokens, perhaps I can use these to purchase my bonds. If its compatibility
If they are for one of the liquidity pairs the bonding project works on I your plan should work.
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I bought a couple of tokens on metamask. But it wasn't added to the farm to provide liquidity. I not sure which tokens it is. I need to check it to find out. The polycub bonding I think it's a different pair !
!PIZZA
I see. I have some left over myself, but I think they are from version V1.
If you want to see what your LP tokens are, you can usually find out by connecting your Metamask to PanCake swap and going to the add liquidity page. IT will take a few minutes, but the page should identify which token pair liquidity tokens you have, and ask you if you want to remove the assets.
The PolyCub bonding will be limited to three asset pairs, so you may want to wait to see what the bonding APRs are for each pair, so you can select the one with the highest return.
Good Luck!
And happy bonding!
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I agree. This seven day 6% ROI is very atractive, and is much more certain then other returns in defi.
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I think you buy liquidity and turn that in for bonds right? So I am guessing the bonds would return you the PolyCUB equivalent plus interest. So where does the PolyCUB come from and will this affect emission rates for the pool? I guess the best thing about it is that the LP should be locked into the pool forever though.
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Yes, you use the Liquidity Provider Tokens you get in return for the assets you deposit in specific trading pairs to buy discounted PolyCub.
The Project Owned Liquidity will generate rewards in the form of PolyCub. But this will not change current PolyCub emission rates.
Yes, the liquidity provider tokens are deposited into the Farm permanently. The Project Owned Liquidity will generate rewards continuously, so the ability of the project to harvest PolyCub and use it to pay off bonds is continuous. This is a continuous loop, POL generates PolyCub, PolyCub is used to buy more Liquidity Provider Tokens, and these are also deposited in the FArms to generate more PolyCub.
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Exactly.
Exactly
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Still waiting for an answer. Can you throw more light on this @edicted (if you can)
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The bonding will be a good thing. The bonding can make polycub to be sustainable.
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I agree.
Ok
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Trying to figure it out last couple days...Now i know.Thanx mate...
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Your welcome.
Straight to the point, I like it, thanks for the explanation.:)
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Your welcome.
Good explanation,
Thanks
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You wrote:
Thank you. I am glad you liked it.
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Super cool and I think I know where I'll be using a good part of my airdrop to go to next! The 7 day window is very appealing compared to some super long lock up period. Also looks like I need to get more into some stablecoins as it's been heavily pushed on all fronts.
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Thanks, I am glad you liked it. You make a good point. The Stable coins are a good way to hold assets in liquidity pairs due the general lack of volatility, and minimual impermanent loss. But using them is also a good way to insure a predictable Bonding ROI.
Smart!
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Thanks, I am glad you liked it.
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