I have spent hours looking and learning a bit on yield farms. Pooling in earnings from liquidity pools are great but what I have found a bit annoying is that I have to daily manually adjust my pool participation if I wanted to either sustain or grow my rewards earned. Let me explain....
What is Auto-compounding
Today tribaldex.com allows Hive investors to pool in assets and earn daily rewards.
The daily rewards are sometimes the same tokens they pool together. For example, I am participating in the Oneup : SPT pool,
and earn daily Oneup tokens on top of other tokens too come out with a little over 480% APR! What is interesting to note is everyday I the daily Oneup tokens I earn are delivered to my Hive-engine wallet. I would then add it into the pool each day with additional earned SPT through post rewards to increase my stake in the pool. As I increase my stake I earn even more daily.
This approach has served me well as I am able to stake liquid tokens while also earning rewards. However I have to manually add in tokens daily in the pool. Some days I forget to do so while other days I put it in right after the rewards for the day gets distributed. For the latter it means I miss the reward for the day.
The necessary tool that I need here is have my rewards automatically reinvested into the pool daily. This is what autocompounding is. The daily earned rewards that automatically gets reinvested to earn more.
Cub Finance's Kingdoms
On CubFinance's Kingdom users can participate in pools that will autocompound and provide continuous growth in rewards based on the length of time the users partake in the pools.
One big hit for Splinterlands fans is the SPS : BNB pool. It ranks second in Kingdoms of most total value locked, TVL. The pools in Kingdom allows users to add liquidity in the pools and earn CUB rewards daily. In addition as the CUBs earned daily will get auto-compound to earn even more CUBs!
The SPS : BNB pool is linked toward pancake swap's pool but through Cub Finance. This means users provide their assets to Cub Finance and in turn Cub Finance provides to Pancake Swap. Why use Cub Finance as the middle man?
It is the amount of rewards one earns. In Cub Finance users earn close to 66% of CUBs tokens which is currently worth around $0.371 each while on pancake swap one earns 7.8% of Pancake tokens which is currently worth $11.79. Users will have to decide which token they wish to earn and hold was deciding on pools.
Conclusions
With pools being a big hit and earning a lot for investors, auto-compounding helps enhanced the gains by reinvesting daily earnings into the pools. In future posts I will go through some interesting Terra blockchain protocols that apply auto-compound to enhance earnings. The race for higher gains is real and will continue to thrive in 2022 and beyond. Happy new year everyone.
None of what I write is financial advice. It is for entertainment purposes only. Thanks for reading!
LeoFinance = Financial Blog
LeoDex = Hive trading exchange for Secondary Tokens, Low 0.25% fees for deposits and withdraws.
HiveStats = Hive stats per user
LeoPedia = Informative content related to anything about Crypto and how to make financial gains in crypto!
CubDefi = LEO Finance's Defi with CUB Token