The entire DeFi branch of LeoFinance - CubFinance and PolyCUB - has grown tremendously in the past several weeks since the launch of PolyCUB.
During the past ~7 months, we spent a lot of time developing features to test with PolyCUB. These features are:
- xPOLYCUB Governance
- Bonding
- Collateralized Lending
- Protocol Owned Liquidity
- pHBD
- Value Accrual Vaults
All of these features are intended to be portable between CUB and POLYCUB. PolyCUB is where we built the features and are testing them in real-time. We're constantly making improvements to PolyCub and adding these new features that we built over the past several months. Once we're happy with how the overall mechanics are working, we're porting them back into CUB and connecting everything with LeoBridge.
The purpose of today's post is to provide a high-level, succinct plan to showcase what we've got in store for CUB and PolyCUB - the entire DeFi branch of LeoFinance's Web3 Ecosystem.
In a nutshell, we're spending day and night building DeFi technology into PolyCUB. The goal of all this technology - Governance, Bonding, Lending, PoL, pHBD, pHIVE, pSPS - is one core idea: Value Accrual.
Value Accrual
Value accrual is everything. We've found the key to unlock sustainable DeFi and that is to change the way that we looked at DeFi completely.
Sustainable DeFi is not about Kingdoms, it's about our new V2 vaults.
In our last post, we compared Kingdoms vaults to the new V2 vaults that we're implementing. This comes after the successful release of pHBD which radically reshaped our thinking around value accrual. pHBD is generating so much value for the PolyCUB ecosystem, it's truly amazing to see it in action and earning real dollars for the PolyCUB Protocol Owned Liquidity.
PolyCUB Vault V1: (Kingdoms)
- insert_kingdom_asset (i.e. WETH-WBTC or Aave Stablecoins) generates management fees (10% of all yield) = value accrual for PolyCUB PoL
PolyCUB Vault V2: (Bridged Assets)
- insert_hive_asset (i.e. pHIVE or pSPS, etc.) - held as 1:1 collateral for the wrapped equivalent - staked on native platform (i.e. HIVE POWER or SPS staking on splinterlands.com) = value accrual for PolyCUB's PoL
- insert_hive_asset 0.25% wrap and unwrap fee = value accrual for PolyCUB's PoL
- insert_hive_asset cross-chain arbitrage = value accrual for PolyCUB's PoL
- insert_hive_asset-POLYCUB = utility for people to buy POLYCUB to LP against - their insert_hive_asset = value accrual for PolyCUB's PoL
- insert_hive_asset-POLYCUB holders need to buy more POLYCUB to stake as xPOLYCUB to control governance and drive insert_hive_asset-POLYCUB vault yield higher
The High-Level Rollout Plan
The high-level plan to roll out our radical reshaping of PolyCUB - which will later port right into CUB - is as follows:
1). Release pHBD ✅
The release of pHBD marked a transformative moment for PolyCUB. We're now accruing more value than the vault is actually paying out in LP incentives. Right now, it's paying about a 50% APR on pHBD-USDC deposits.
If you're not providing pHBD-USDC liquidity, we highly recommend checking it out. As a Hive user, it could be one of the most important things you do to grow the Hive ecosystem.
2). Release xPOLYCUB Governance ✅
As of about 7 days ago, we released xPOLYCUB governance and kicked it off with our first xPOLYCUB DAO vote.
The vote was a proposal to reduce the harvesting claim window. This window was previously 90 days and POLYCUB isn't even 60 days old yet.
Most users complained that the window was far too long. Many said that we were warding off pHBD deposits because the fact that you can claim HBD savings rewards every 30 days directly on the Hive blockchain was superior.
The community has spoken - the 30 day proposal one by massive margin and it has already been implemented. Now, you can claim your POLYCUB Harvests 1x per month for 0% penalty or claim instantly at any time for a 50% penalty if you need liquidity.
This is just the first of many Governance votes. Voting on Governance will become one of the most important features moving forward on PolyCUB and as a POLYCUB stakeholder, you're going to want more xPOLYCUB to have your voice heard on the platform mechanics.
When it comes to the Vaults V2 setup that we're releasing (pHIVE-POLYCUB, pSPS-POLYCUB, pRUNE-POLYCUB) it's going to be incredibly important that you are able to drive more yield into the vaults of your choosing.
3). Release pHIVE ⏱
We're about to rollout pHIVE which will add yet another MASSIVE value accrual mechanism to the PolyCUB ecosystem. I don't think anyone is ready for what is coming for POLYCUB in terms of tokenomics and sustainability.
The fact that we can earn thousands - tens of thousands - of dollars each month per vault for POLYCUB's Protocol Owned Liquidity is truly massive.
The pHIVE-POLYCUB Vault Accrues Value for POLYCUB in 5 Ways:
- pHIVE held as 1:1 collateral for the wrapped equivalent - staked as HIVE POWER to earn on-chain rewards = value accrual for PolyCUB's PoL
- pHIVE 0.25% wrap and unwrap fee = value accrual for PolyCUB's PoL
- pHIVE cross-chain arbitrage = value accrual for PolyCUB's PoL
- pHIVE-POLYCUB = utility for people to buy POLYCUB to LP against - their pHIVE = value accrual for PolyCUB's PoL
- pHIVE-POLYCUB holders need to buy more POLYCUB to stake as xPOLYCUB to control governance and drive pHIVE-POLYCUB vault yield higher
All of this value accrual lands in the PolyCub's Protocol Owned liquidity which creates Risk-Free Value (RFV). Protocol Owned Liquidity creates permanent liquidity on pairs like pHBD-USDC, pHIVE-POLYCUB, POLYCUB-USDC, etc. while also deploying assets to earn external yield. All of that yield ultimately is used to buy POLYCUB and deposit it into the daily rewards pool.
This creates constant demand for POLYCUB through Protocol Owned Liquidity while backstopping the POLYCUB price with the current total assets that are held in PolyCUB's PoL (see Terra LUNA's example with buying BTC to backstop UST) while also increasing LP incentives in perpetuity.
4). Release pSPS ⏱
pSPS will work exactly like pHIVE, generating value accrual for PolyCUB's PoL in 5 ways:
- pSPS held as 1:1 collateral for the wrapped equivalent - staked as SPS on Splinterlands = value accrual for PolyCUB's PoL
- pSPS 0.25% wrap and unwrap fee = value accrual for PolyCUB's PoL
- pSPS cross-chain arbitrage = value accrual for PolyCUB's PoL
- pSPS-POLYCUB = utility for people to buy POLYCUB to LP against - their pSPS = value accrual for PolyCUB's PoL
- pSPS-POLYCUB holders need to buy more POLYCUB to stake as xPOLYCUB to control governance and drive pSPS-POLYCUB vault yield higher
5). Release pRUNE and Similar External Vaults ⏱
If you read through the comments on our last post, you'll notice a few conversations about external vaults. With this idea, we're taking the vault setup of things like pHBD, pHIVE, pSPS to the next level.
What we're doing is taking assets from other blockchains entirely (not on Polygon, not on Hive) and we're bringing them home, to the mother chain.
We're collecting a basket of intensely valuable assets and deploying them into the PolyCUB Multi-Token Bridge Protocol. This protocol will operate the oracles for a bunch of different assets.
We're starting with Hive-based assets like pHBD, pHIVE, pSPS but we're porting this technology into things like pRUNE.
It's not as simple as just wrapping native Thorchain RUNE and bringing it directly into PolyCUB... Instead, we're creating an entire oracle that will handle wrapping RUNE on Thorchain and porting it over to the Hive ecosystem and Polygon (POLYCUB) simultaneously.
These vaults will accrue value in much the same way as pHIVE and pSPS, but will actually have some added accrual since it is wrapped twice (both Polygon and Hive). These vaults are signficantly more challenging for us to deploy, but we have all of the technology in place. What we've spent the last ~7 months building is just the base layers of this entire DeFi ecosystem. We started this mission on BSC with CUB and the layers have been continually adding up.
This brings us to the final point of this high-level strategy: porting into CUB. All of these incredible features are starting on PolyCUB but they are ultimately getting packaged for an easy deployment all at once to CUB as well. This means massive value accrual on both sides of the chains (BSC and Polygon) for both CUB and POLYCUB.
When we deploy the wrapped versions of all these assets on CUB after already doing it on POLYCUB, we're going to see an intensely valuable synergy occur. This is because of cross-chain arbitrage between the pools on BSC and Polygon. All of this arbitrage leads to wrapping and unwrapping volume on both sides of the bridge.
How is all of this connected? LeoBridge:
In the long-run, this is all further simplified through the "One-CUB" unified user interface. We're going to merge all of our developments into a singular UI that will create a dramatically improved user experience.
This entire post was intended to look at the short-term rollout of everything we're working on right now at a higher-level. There are a lot of details that aren't included here. Engagement on our content has been super high, so we encourage you to leave comments and ask as many questions as possible. We'll respond to every single one. 🦁
We're on a mission to create the most sustainable DeFi ecosystem in the world. We're still in the infant stages of this long-term roadmap. Our goal with this post is to show you what's coming in the near-term sooniverse for our DeFi branch within the entire LeoFinance Web3 Ecosystem.
About LeoFinance
LeoFinance is a blockchain-based Web3 community that builds innovative applications on the Hive, BSC, ETH and Polygon blockchains. Our flagship application: LeoFinance.io allows users and creators to engage and share content on the blockchain while earning cryptocurrency rewards.
Our mission is to put Web3 in the palm of your hands.
Twitter: https://twitter.com/FinanceLeo
Discord: https://discord.gg/E4jePHe
Whitepaper: https://whitepaper.leofinance.io
Our Hive Applications
Join Web3: https://leofinance.io/
LeoMobile (IOS): https://testflight.apple.com/join/cskYPK1a
LeoMobile (Android): https://play.google.com/store/apps/details?id=io.leofi.mobile
Delegate HIVE POWER: Earn 16% APR, Paid Daily. Currently @ 2.8M HP
Hivestats: https://hivestats.io
LeoDex: https://leodex.io
LeoFi: https://leofi.io
Polygon HBD (pHBD): https://wleo.io/hbd
Web3 & DeFi
Web3 is about more than social media. It encompasses a personal revolution in financial awareness and data ownership. We've merged the two with our Social Apps and our DeFi Apps:
CubFinance (BSC): https://cubdefi.com
PolyCUB (Polygon): https://polycub.com
LEO Wrapping Bridge: https://wleo.io