I've collected a series of tips in my two days of using Cub Finance and Binance Smart Chain. I decided to write a post to share them. We might even exchange tips and tricks this way.
This will most likely look better with bullet points, so that's how I'll present them.
- on Cub Finance you have farms and dens, where you can engage in decentralized finance and earn your part of the generated CUB inflation.
- the difference between farms and dens is that farms has pairs of coins and you will add liquidity to the pool before being able to farm it, while dens have one coin which you stake.
- On dens there is no unstaking period, it's immediate. There is however a 4% fee on deposit for all dens except for the CUB den, which is feeless. The fees are used to buy and burn mostly CUB but also some bLeo (80%-20% proportion).
- Dens also don't have impermanent loss, unlike farms, but also have lower APRs in most cases.
- Both dens and farms have multipliers associated with them. From 1x to 40x, currently.
These multipliers control the inflation flow. Here's an example. If in two farms (or dens, or a farm and a den) there is the same liquidity, say $300,000, and farm A has a 40x multiplier while farm B has a 2x multiplier, you will get 20x more CUB from farm A than from farm B if you have the same amount of liquidity locked in both farms. Same explanation holds for dens, except we are talking about staked amounts instead of locked liquidity. Beware of deposit fees and impermanent loss when you make your choices!
- Inflation and emission rates. Note that in the first week after launch (ending on March 15th) the emission rate is triple, in the second week (from March 15th to March 22nd) emission rate is double and then it is 'normal', 1 token / block (28.8k tokens per day), until another decision is made. That means that more CUB can be earned now in the early days, if that's what you're looking for.
- It's a mistake to farm a pool or stake to a den that has a deposit fee and remove liquidity from that pool or unstake from the den before you earn at least the fee amount back. Remember the rewards come as CUB, you will have to exchange some to the coins you were taken a deposit fee from, to recover the original coin(s) full amount.
- don't harvest to often; despite BSC fees being much lower than ETH gas fees, they add up. I harvest twice a day now: in the morning and in the evening. Don't use "Harvest all" button on the home page, unless you haven't harvested in a few days or longer. Otherwise, it will harvest all farms and dens, even if it only has a few fractions of a CUB. And all these operations cost.
- if you stake to a den, it automatically harvests, so you might not need to harvest it before that
- 'compound' on the CUB den 'moves' the unharvested CUB to staked. That's one operation, instead of harvest+stake.
Also, have a plan. What are you trying to do? Harvest as much CUB as possible early on? Get a nice APY on a different coin? Go the safe route or risk a lot for huge potential returns? In each case you might need a different approach.