There is discussion about vexPOLYCUB that was brought up on the AMA. I also put together an article discussing the happenings with POLYCUB.
In this article I am going to espouse a model that I think should seriously be considered. From this, we will really start building value on a few different layers. It will help to enhance the value of POLYCUB, pHBD, and HBD.
Interdependence is a way to truly establish value. The idea of vexPOLYCUB is a strong one. However, to truly be maximized, we need to leverage it across many different facets of the platform.
For this reason, here is what I propose.
vexPOLYCUB: Multi-Layers Lock Up
Khal discussed the idea of giving people the option of moving xPOLYCUB to a longer term lock up period. His suggestion was 2 years. In return, people would get advanced voting rights along with a guaranteed return, say 10%.
Here is where we need to adapt this concept.
Instead of just one lock up period, we have three. The exact numbers aren't important for this discussion so I will just use these as an example.
1 year 8% return 1.25% voting weight
2 years 10% return 1.50% voting weight
3 years 12% return 1.75% voting weight
As mentioned I just pulled out some numbers so the tokenomics will have to be worked out but they illustrate the point.
Tokenize The Locked Up xPOLYCUB
I wrote a great deal about Hive Savings Bonds. There is no reason why the same premise can't exist here.
Since we have a time period along with a specified rate of return, we have the ability to create a bond.
In this instance, the xPOLYCUB deposited in vexPOLYCUB will deliver a token. It will represent the vuePOLYCUB in that is locked up. This means that the individual has liquidity in that the bond is a sellable asset. It can be swapped just like any other token.
Polycub Exchange
Of course, to trade the tokens, an exchange has to be built. This could be a basic layout since nothing too complex is needed to start. It basically could begin as a bid/sell platform.
The key is to develop a market whereby people can purchase the bonds. Increasing the activity over time will help liquidity. Also, it allows people to access the capital (sell) if needed/desired.
We also can have this feeding the Protocol (Treasury) by charging a small fee on each transaction. This will help to generate more revenue.
pHBD Use Case
On the Polycub exchange, the token that is used to buy the bonds is pHBD. This is an important piece of both the Hive and Polycub ecosystems.
pHBD is a derivative of HBD. This means that, ultimately, it is feeding value back to that token.
Of course, Polycub is benefitting since the majority of HBD that is mirroring what is in the liquidity pool is in savings on Hive. This is earning 20%.
What we are looking at doing here is adding value to pHBD. By making it the main token on the Polycub, activity within the liquidity pool will increase. Those who do not have the token will either have to wrap HBD (which generates bridge fees) or get it from the liquidity pool.
Any loans can pay out in pHBD, ensuring there is another use case with the token.
Feeding POLYCUB
All of this is going to keep pushing value to the POLYCUB token.
Obviously, to be involved in vexPOLYCUB, POLYCUB needs to be staked. This means that those without will have to acquire it.
At the same time, we are looking to generate more activity on the platform. A great deal of this is feeding the Protocol, revenue that will be used to purchase POLYCUB.
Since a DeFi platform of this nature is based upon USD, the higher pricing on POLYCUB is not a hindrance to newer people. For example, if $20 gets one 1 xPOLYCUB or 20, it doesn't matter to the person buying in the sense he or she is investing $20. The ROI on the money will be the same.
For people who want to be involved in the Polycub Savings Bonds, there are two choices: buy more POLYCUB and stake it or get pHBD to purchase it on the open market. Either way, the platform benefits from this activity.
Increasing Value Of The Liquidity Pools
What does a higher POLYCUB do other than make HODLers happy?
The greatest value to the platform is the fact that it increases the value in the liquidity pools. Since a number of tokens (pHIVE, pSPS, wETH, wBTC) are paired with POLYCUB, an increase in the token value provides depth to the those pools.
Obviously, as the price of POLYCUB increases, bringing most of the platform higher, the returns start to increase. This is where the activity becomes the driver of value. Instead of tokenomics we use business building principles to generate consistent, yet ever growing cashflow. Much of this will be fed into the buying of POLYCUB, pushing value to an even higher level.
So there you have it.
What are your thoughts? Let us know if this is something that you feel should be built on the platform.
Post your ideas in the comment section below.
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