With less than one day until the initial deflation mechanism kicks in, we're witnessing (pun intended, as I'm still a Hive witness, for more than 3.5 years) an outstanding $13 million (almost there, just 30k until we hit the exact mark) in total value locked. That's an impressive number for a project less than 10 days old.

Oh, what do I mean by "initial deflation mechanism"? You see, the CUB tokenomics includes a gradual cut of the amount of CUB being minted, which actually acts like a deflation mechanism. In the first week there are 3 CUB minted per block (every 3 seconds), and that first week ends tomorrow. In the second week there will be only 2 CUB minted per block, and starting with the 3rd week it will stabilize at 1 CUB every block.

What does this mean?

Obviously, there will be less CUB available. Not so obviously, maybe, the APR may go down a bit, so we're not gonna see the same insane ROIs as during the first week. It will be an interesting moment for the CUB price. These two consequences will act like a squeeze, and there is a significant potential for a rise in price. A price decline, if the diminishing of the APR will be perceived as more important than the decrease of supply, is also possible.

Nevertheless, it will be fun watching this.

Disclaimer: this is not financial advice. Decentralized Finance, Automated Market Making, and yield farming are risky activities, and you may be subject to impermanent loss. DYOR before entering.

I'm a geek, blogger and ultrarunner. You can find me mainly on my blog at Dragos Roua where I write about productivity, business, relationships and running. Here on Hive you may stay updated by following me @dragosroua.