There are a lot of exciting things happening with the entire Leofinance ecosystem.
Listening to the weekly AMA revealed a great deal of progress. Before getting to some of the exciting stuff about Polycub, it is important to note that an important feature is now available on the Leofinance Mobile application.
Full text search is evidently operational (remember the entire application is in Alpha). This allows users to search for different words without leaving the application. It is a huge step forward.
The idea of the Mobile Application is to target those who are consuming Leofinance content. We are going to see the development on there being integrated into the desktop.
One thing we need to point out about the ecosystem, is that development in one area is going to be applied elsewhere. This is something to keep in mind as we go through Polycub.
The key to what is taking place is the fact that the Leofinance ecosystem is stretching to many chains. Through the development of pHBD, we are seeing an entire new utility arising.
Already, the money being fed into the Polycub Protocol is impressive. Of course, this is only the tip of the iceberg. We are seeing the activity with a little over $300K in the liquidity pool. What happens when this amount jumps to $3 million.
What is driving all of this is the fact that HBD, on the Hive blockchain, now is paying a 20% APR. We now see the prospect for demand to increase substantially.
Here is where things get interesting. Since Polycub will be replicated on other EVM chains, like Binance (Cubfinance), we are going to see a bHBD liquidity pool. Therefore, the access to HBD should keep increasing.
This is where it gets interesting. With a bHBD pool, there is the opportunity for cross chain swaps between Binance and Polygon. We need to keep in mind the fees that are generated for the service.
In this situation there is a .25% fee on the Binance side as well Polygon. When people are moving their tokens around, they incur the fee for using the bridge. The same is true when going from either bHBD or pHBD onto Hive in the form of HBD.
Remember, there are few options to get serious amount of HBD. At this point, even the pHBD liquidity pool will only allow for purchases of a couple thousand dollars before the rate gets too high. However, that is a marked improvement from a couple weeks ago.
Eventually we could see Terra, Avalanche and Thorchain added to the mix in some manner.
Just picture what the fees will amount to with hundreds of thousands of dollars per day in swapping and bridging taking place.
One of the key additions will be the implementation of pools such as pSPS. Hive-Engine tokens that have decent volume along with a strong community are going to get be eligible to have a LP on Polycub (and elsewhere). Once again, we see the same situation with the fees.
However, there is another layer to this. We just had the first governance vote. This is not going to be the last one. Upon finishing the UI, anyone will be able to submit a proposal to change the yield on a particular pool. Obviously, one would do this is he or she had a vast amount staked in there.
Of course, if one pool gets more, another will receive less. This might not sit so well with those in that other pool. Hence, they will have the option of submitting a proposal to alter how the APR is distributed.
What this does is creates a massive use case for POLYCUB. Votes are based upon the xPOLYCUB holding. Therefore, is you want to ensure the yield you are getting is as high as possible, it is best to max out your xPOLYCUB.
The thing that should jump out at everyone is the fact that if a whale dumps a lot of money into a pool, let's say pHIVE (yes that is on its way), that individual will want to also have some xPOLYCUB to make sure the return is as strong as possible.
Here we see a gamification that worked out well on [Curve](https://www.coingecko.com/en/coins/curve-dao-token). That token was able to generate high demand simply because there is governance incentive. It is tied directly to yield which is naturally important to people.
There is little doubt that cross-chain capabilities are building around the idea of becoming the main entry and exit point to HBD. This is crucial since many feel that this can really put Hive on the map.
With a free float of around 10 million, the amount of HBD that is going to be required is enormous. Compared to other stablecoins, we are looking at a 10x without a problem. UST, as a comparison, is over 17 billion. Thus, we have a lot of room for growth.
Of course, much of this is going to come down to use cases. Before that, we have to increase the amount of HBD available as well as the liquidity. That is the position we find ourselves in.
Polycub is seeking to solve the liquidity issue. Thus far, $300K is available in the pool that went live about 10 days ago. The push it $500K is on, a point where then sets the sights on a million.
Polycub has a new outlook. The previous model is being added to include even more use cases. This is taking place at a time when the emission rate is about to halve again. Couple this with the fact the airdrop is ending and we can see how the amount of POLYCUB reaching market is going to dwindle.
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