The announcements from the Leofinance team about Polycub keep coming. This is causing a concern for many.
Before getting to that, it is vital to note that we are seeing massive expansion of the Polycub platform. The team is trying to add as many LPs as possible. According to the Polycub Road Map, the pHIVE-POLLYCUB Liquidity Pool is being worked on. It will go live any day now.
After that, we can expect the pSPS token, a wrapped version of the Splinterlands governance token, to be paired with POLYCUB and a LP established.
The idea behind both of this is to add value to the Protocol. This should help to enhance the Total Value Locked (TVL) on the platform along with increasing the price of POLYCUB. We will also see a fair number of fees generated.
All of this creates a positive feedback loop as more of the LP is picked up by the protocol. This will allow for permanent liquidity along with the Treasury earning higher rewards.
Yet this is not the sole focus.
Cubfinance Is Being Built Up
As we speak, Cubfinance is in the process of getting a major upgrade. This is because all that is added to Polycub will eventually be pulled over the Cubfinance. At the moment, the focus is building on the Polygon chain. After that, we will see many (if not all) of these same features pulled onto BSC.
And BSC means Cubfinance.
Therefore, Polycub is going to enhance Cubfinance, not overshadow it.
There is something else that is vital to keep in mind. Liquidity pools are obviously vital for liquidity. The name gives it away. They are also fantastic for arbitrage opportunities.
By having a pHBD and bHBD, we see the opportunity for bots to be set up to play any spreads that exist. This is crucial for maintaining liquidity, i.e buy/sell orders. It is also important for the peg with a stablecoin.
Thus, we can see how pSPS/bSPS and pHIVE/bHIVE could also follow suit. Of course, we already have pLEO and bLEO. Each of these combinations has the ability to generate more activity (read FEES) for the system.
Another important feature is the bridging. Leofinance is looking at establishing powerful bridges between all these chains. By having the capability for swapping the different wraps, we can see an easy, and inexpensive way, to move from one chain to another.
All of this is meant to enhance the total value of the ecosystem.
Convergence
The most powerful thing in the world is when separate technologies converge. As stated on numerous occasions, the most powerful example of this is the Smartphone. While Leofinance is not going to be in the same class, we can expect the "sum to be greater than the parts".
When all of these different platforms start to converge, we will be growth that far exceeds what is happening individually. Here is where the larger footprint has a greater impact.
Ultimately, users will have a choice where they want to investing their resources. It is not required to be everywhere. In fact, that is not possible. However, each segment will benefit from the other.
If we take the approach that each new development is meant to, eventually, feed in what was already in place, we can understand how the workflow is occurring. Sometimes the development rolls out simply as it is completed. In this situation, however, we are seeing a concerted effort to strengthen the Polycub platform
Therefore, in conclusion, do not worry about Cubfinance being overlooked. All the design is taking place on Polycub. It makes sense that when liquidity levels are acceptable on Polygon, we will see the associated LP open on BSC.
This will ultimately create a very powerful DeFi ecosystem. It is a goal everyone should be very happy about.
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