XPolycub
The creator of Leofinance, @khaleelkazi, who first reached out into the cryptoverse to create a pathway from Hive to Ethereum decentralized finance, and then created a pathway from Hive to decentralized finance on Binance Smart Chain , has done it a third tme, creating a pathway from Hive to Polygon.
This is a marvelous set of adventures, which has helped to opened up the world of decentralized finance to Hive investors.
In addition, this third adventure into the cryptoverse features many unique decentralized finance token economic features, one of which is the X-Polycub vault.
The X-PolyCub vault features:
- Polycub earnings from a high APR
- Polycub earnings from the 50% earnings penalty on investors who claim their Polycub Farm rewards early. And tis includes the investor called Protocol Owned Liquidity
- Once Khal turns on the Protocol Owned Liquidity feature of Polycub Protocol, the Protocol will claim Polycub rewards from the vaults, and it will also pay a 50% early payment penalty.
- This means that the vault will have an additional source of Polycub earnings boosting the real or actual yield in the vault.
High APR
- The X-Polycub vault currently features high APR of around 400-500% providing generous Polycub awards.
- This is lower then the Farms, which are 600-700% APR.
- But the X-Polycub earns additional Polycub in early claim penalties.
Farm Early Claim penalties
- The Farms opened with 10,000% APRs and 10 million dollars of liquidity investmnent rushed into the protocol.
- And much of that was in the liquidity pairs PolyCub-USDC, Polycub-ETH and pLEO-Matic.
- However if investors claim their rewards before the X-date they forfeit 50% of all their Farming rewards, and these Polycub rewards taken from them are awarded to the investors staking their Polycub in the X-Polycub vault.
- So the investors in XPolycub vault are earning PolyCub from the vault's 500% APR, and they are earning PolyCub from the 50% penalty on the investors in the farm earning 600% APR Polycub.
Now I wish to focus on this important dynamic of the xPOLYCUB vault.
- This results in xPolycub APR being greater then the advertised APR of 500%.
- It also results in 1 Xpolycub being worth more then 1 Polycub.
- The value of each xPolyCub is determined by the number of PolyCub it earns via the 500% APR an the APR it earns from the 50% penalty on the yield from all the investors claiming yield in the farms.
Let's unpack this idea or focus more intensely on this idea.
We have three entities:
- The Protocol
- You the investor in xPolycub
- Another investor in one of the Polycub Farms
One Day #1 of the airdrop you deposit or stake 100 PolyCub in the xPolycub vault, and you are awarded 100 xPolycub tokens.
First, the Protocol places your 100 Polycub tokens in your xPolycub Polycub investment bag.
Second, the Protocol gives you a bag of 100 X-PolyCub.
Third, it's important to note that on Day#1 Every X-PolyCub token you are given that day, represents 1/100 or 1% of the 100 Polycub tokens in your xPolycub Polycub Investment Bag.
And every xPolycub token can be exchanged back for 1% of the tokens in the Polycub Investment Bag.
Fourth, every day the protocol puts additional Polycub in your xPolycub Polycub investment bag from different sources:
Source number one is the X-PolyCub vault APR
Source number two is the 50% early claim penalty from every investor in the Farms.
Source number three is the 50% early claim penalty for Protocol Owned Liquidity claiming Farm Polycub earnings early.
What this means
- Everyday the protocol puts additional Polycub in your xPolycub Polycub investment bag.
-So after three days the protocol may have put 100 new Polycub tokens into your investment bag of 100 polycub, so it now holds 200 tokens. - This means two things:
First your investment Polycub bag no longer holds 100 polycub, it holds 200 polycub.
Second, each xPolycub token you hold no longers represents 1% of 100 tokens or 1 token. It represents 1% of 200 tokens or 2 Polycub. - This relationship between the number of X-PolyCub tokens you hold and the number of Polycub it represents in this special bag, your XPolycub Polycub investment bag is called the X-PolyCub-PolyCub ratio.
- Which is abbreviated as xPC/PC ratio.
To review:
- Remember your xPolycub bag holds only the original 100 xPolycub tokens you were awarded when you deposited or staked 100 Polycub in your X-Polycub Polycub investment bag.
- Remember each xPolycub token can be redeemed for 1% of the total tokens in the Polycub investment bag.
- So if after one week, the total number of PolyCub in the investment bag had increased by 100, from 100 to 200.
- Then one token of xPolycub, which represents 1% can be redeemed for 2 Polycub in the bag, instead of 1 token. This is due to the additional Polycub tokens being added to your bag of Polycub. These additional Polycub come from the vault APR of 500% and the rewards penalty for Liquidity Farmers.
- This creates a changing relationship between the number of xPolyCUb and the number of Polycub each one represents for the xpolycub vault investor.
- This relationship is called the XPolycub/Polycub ratio.
Last words...
- This is pretty amazing, and I am very sorry I didn't understand this dynamic earlier.
- Khal has successfully constructed a tokenomic plan which allows yield farmers and their bots to invest in the Polycub Farms from day number one reaping huge numbers of Polycub awards...
- But very importantly, Khal also managed to remove some of their rewards and redistribute it to the Polycub investors who chose the xPolyCub vault.
- It's a way of rewarding the long term Diamond Paws investors of Leofinance, and Cubfinance with this sweetheart deal on PolyCub in the xPolyCub vault.
- If you knew about this feature before the launch you enjoyed a 17x gain so far in xPolyCub.
- If you didn't , well you could still benefit by investing now, as there is speculation that xPolyCUb holders will continue to reap large rewards throughout the air drop, and beyond.
- As the cryptocurency influencers like to say, the best time to get involved in cryptocurrency was yesterday, but the next best time is today.
Please leave your thoughts, impressions and questions in the comments below.
This is my summarization of the way this X-PolyCub works, so @khaleelkazi and team, please clarify any thing I have said, I wish to learn.
Thank you,
@shortsegments
