Direct from the desk of Dane Williams.
By offering FREE yield to the bLEO:BNB LP, Cub Finance adds real value to the LEO token.
I don’t know about you, but I’m balls deep in LEO - Not CUB.
So all of the talk about how much work is going into Cub Finance and how strong the MTB makes its tokenomics, certainly grinds my gears.
I mean come on team, fuck Cub.
Put that work into strengthening the OG LEO token instead!
But as the price of CUB continues to rise - and the APRs being paid out to all LPs on the platform rise alongside with it - I’m finally seeing the light.
Cub Finance adds value to LEO by hosting a LEO sided LP and essentially offering free yield to those inside.
Let’s talk about how, why and what this could realistically mean for the price of LEO itself.
Hint: 🚀
How does CUB remain sustainable?
For Cub Finance to add value to LEO, its token first needs to be sustainable itself.
An outcome that since switching to a model where it is able to derive revenue from the multi token bridge, CUB has been able to reach.
It’s all about that MTB, baby!
The MTB generates revenue through:
- Wrapping Fees
- Oracle Staking
- Internal Arbitrage
This revenue is then used to buy CUB and burn it over and over again with the idea that you now have a more scarce asset that generates ongoing demand due to the platform’s ability to offer higher yields for providing liquidity to all LPs.
What we’re seeing happening is more HIVE and LEO being wrapped to earn the higher CUB yields on offer.
Making the pools deeper and arbitrage opportunities in HIVE and LEO more lucrative.
Thus creating more wrapping churn through the bridge and creating an outcome that continues to feed into itself.
A self fulfilling prophecy if you will.
Why would CUB finance give free yield to LEO?
So as you can see from the above, Cub Finance isn’t simply throwing LEO a bone for the sake of it.
CUB massively benefits from offering yield to non CUB sided LPs like LEO too.
So now we know that Cub Finance relies on revenue from the MTB, that means the platform needs to give a reason for someone to take their tokens and push them through the bridge.
The most simple reason being that they can earn a higher yield on their LEO than if they left it powered up in their Hive wallet.
According to HiveStats, my current LEO curation APR is sitting at 9% for the month.
Let’s now compare that with what I can earn by bridging my native LEO to bLEO and adding it to the bLEO:BNB LP:
28%.
With the only risk that I end up scaling my LEO into BNB if price rips, that’s quite the incentive to bridge it into Cub Finance!
And yep, bridging means revenue and value for CUB.
That’s why the platform offers free yield to LEO.
Does this mean that Cub Finance adds value to HIVE too?
Ding ding ding!
By offering HIVE sided LPs, Cub Finance also adds value to HIVE too.
The bHBD:bHIVE LP on Cub Finance is currently paying 27%:
While someone who is fully powered up and using their stake to curate can earn 13% or so… if they’re lucky.
Granted, the bHBD side of the LP caps your upside potential if the price of HIVE rips.
But that is why savvy investors won’t be all in on the LPs and simply using them as part of a wider investment strategy to stack more HIVE.
With the yield once again not coming from HIVE’s own inflation, the potential is still there for investors to stock up and earn what is essentially free money in these HIVE sided LPs.
Yield that can only be achieved if investors earn CUB revenue by pushing their HIVE through the MTB!
What does this mean for the price of LEO?
When I say add value to LEO, of course I mean price.
And the sustainability of CUB alone literally has the potential to not only keep the LEO price sustainable.
But actually moon price!
Right now LEO is a $750,000 market cap token that you can earn a sustainable 30% yield from, without touching LEO’s own inflation.
I’ll let you do the math on how much money needs to go into that LP for the price of LEO with its current emissions, to hit 10c, 50c, $1 and beyond.
When you think about it like that, shit starts to get real.
As for the price of HIVE, the value added is the same,
However, we’re no longer talking about a token with a measly $750K market cap.
HIVE’s current market cap of $218 million makes moving the price needle via incentivising yield a little harder.
Harder, yes.
But not impossible!
In my opinion, the Hive community owes the LeoFinance team a ton of gratitude for what they’re doing here.
So much potential value can be added to the HIVE token through Cub Finance alone!
Final thoughts on the value that Cub Finance adds to LEO
Next time you’re like me and having your gears ground down by hearing how strong the MTB makes CUB’s tokenomics, don’t worry.
Remember that by offering FREE yield to the bLEO:BNB LP, Cub Finance is adding real value to the LEO token.
The relationship is symbiotic and there's a place for both in the Leoverse.
With LEO’s market cap being as small as it is, the yields offered on the pair’s Cub Finance listing will at the very least stabilise the price.
With the potential to moon price once people outside of our tiny bubble realise the free money being offered.
Soon.
Best of probabilities to you.
PS. This is only investment advice for people named Dane.
For everyone else, this is for entertainment purposes only.