The world of Decentralized Finance (DeFi) is changing. We read a great deal about DeFi 2.0 and what it is evolving into. For most of us, this is just theory.
That was, of course, until the release of Polycub by the Leofinance team. This is something that we are now starting to see the potential.
For those unaware, this is taking place under the umbrella of Leofinance's DeFi arm, Cubfinance. There was a separate site set up to run the project, helping to bring more value to the Cubfinance, and ultimately Leofinance, ecosystems.
In the meantime, it is offering the participants amazing returns. This is something that will be duplicated every 60-90 days as the project rolls out on other EVM blockchains.
That said, it is helpful to understand what xPOLYCUB really is and how it works.
Many of us are familiar with yield farming. It is a rather basic concept, which is not new. Investors throughout all markets chase yield. This is what investing is all about. When DeFi started to emerge, we saw this quickly embraced.
What followed was a mixed of success and failure. Many of the projects we saw headlining the crypto media articles are in the toilet today. Their tokenomics simply did not work. Alas, that is the price we pay for being early, a time when experimentation takes place.
Fortunately, Cubfinance was able to remain flexible and adapt. Instead of rushing headstrong into a wall, the team stepped back, and re-evaluated. This led to the creation of an entire new model, one that incorporates some of the most powerful aspects of what is now being termed Defi 2.0.
POLYCUB is a token that is being claim dropped by holders of CUB. Each CUB nets a percentage of POLYCUB. So far, this is nothing special. We all like free money and, if the project stopped here, it would be powerful.
However, there is another step that makes it a game changer: xPOLYCUB.
Individuals have many choices regarding their POLYCUB. They can hold it liquid, put it in farms, or set it in the Kingdom. The latter is what is putting the rewards on steroids.
When POLYCUB is put into the Kingdom vault, it actually "buys" xPOLYCUB. They initially started out on a 1:1 basis. This quickly changed. As the inflation of the POLYCUB token unfolds, along with the penalty for early claiming, the amount of POLYCUB in the vault grows. While this is happening, the POLYCUB stays the same.
Therefore, over time, the value of xPOLYCUB, in POLYCUB terms, increases. This means that, with each passing day, the number of POLYCUB one will receive when exiting the Kingdom increases.
Basically, we are looking at the relationship between POLYCUB and xPOLYCUB. Here is what we see at the present moment:
You will notice that each xPOLYCUB is now worth just over 3 POLYCUB. This would be the payout for each one upon exit from the Kingdom.
To give some insight into how powerful this is, we need to look at past pricing.
When the project went live, as mentioned, it was a 1:1 correlation. Earlier today (March 6th), we saw it at 2.27 at 9:30 AM eastern time. By noon, it was 2.50 and 2.61 at 1:45.
In less than 12 hours, the holdings went up about 33%. That is a return that would make anyone happen.
Of course, over time, the APR decreases. The idea is to make POLYCUB deflationary. There are periodic halvings, just like Bitcoin, which slows the release of new supply. The liquidity pools are still in tack, hopefully increasing over time. As more people use the features of the POLYCUB platform, we should see the management fees as well as transaction fees increase.
All of this helps to support the value of the token.
xPOLYCUB captures a fair portion of the present inflation rate. That is why those who are in the Kingdom are realizing powerful gains.
Keep in mind, the payout, in POLYCUB, only keeps growing. It can, however, fluctuate, based upon USD. That said, the ultimate goal of the deflationary nature of the token is to keep driving demand through utility as the supply distribution declines.
Of course, it is worth mentioning that the key is to drive value to CUB. This is just the first of what is going to be a number of projects following a similar model. Each of these is based upon a drop to CUB holders.
For the time being, we will focus upon POLYCUB. The team is watching how the tokenomics perform. For the first 24 hours, it has really taken off. Those who are stacking xPOLYCUB are finding the gains very exciting.
xPOLYCUB is showing itself to be rewards on steroids.
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