Starting in July of this year, we began the simultaneous development of a number of exciting features that would forever change the way CUB operated in the world of DeFi.
If you check the rankings, CubFinance has already climbed above many of its "former competitors" who launched similar DeFi platforms back in early 2021. Many of those platforms lacked innovation but most importantly: lacked the community that we have.
Our community is our strength. 💎🐾 can accomplish anything if we move as a unit and believe in the common mission.
With LeoFinance (LEO), our mission is to evolve Web3 and radically change the way the world uses the internet as continue to innovate within the crypto industry.
With CubFinance (CUB), our mission is to evolve DeFi and continually strive to bring massive opportunities to our community of 💎🐾.
On Monday of this week, we announced the new PolyCUB platform and some of the core details to prepare the community for an entirely new blockchain of opportunities that we're plugging LEO (pLEO) and CUB into.
As we mentioned: the past 4 months have been a hardcore mission of designing and developing a number of radical updates to CUB. PolyCUB is at the core of this. IDOs, vCUB DAO Staking and CUB LP Bonding are also right around the corner.
In this post, we'll dive into IDO #2 as we anticipate it going live shortly after PolyCUB.
Launchpad V2 Model
Launchpad V1 came with its own set of unique challenges and issues. We took notes throughout the process and also managed to hammer down some details from a few on-chain metrics during the IDO itself.
After reviewing all of these, we designed Launchpad V2 to handle future IDOs. Seeking to solve the short-term and long-term issues we discovered with Launchpad V1.
100% CUB Raises
Moving forward, all IDOs will utilize the Launchpad V2 model.
In a nutshell, this new model:
- Allows deposits of only CUB (100% CUB vs V1 which allowed CUB-BUSD LP tokens)
- Creates a new liquidity pool on CubFinance using the IDO token and 50% of the raised CUB
- Distributes the LP tokens of CUB-IDOtoken to all IDO participants at the set price of the IDO
- Burns the other 50% of CUB raised in the IDO
This all begs the question: what does the other team get?
This isn't a raise event for an external team to gather funding. Instead, they're getting access to 2 of the most important ingredients to building a project in the crypto industry:
- Initial liquidity
- Strong community
The initial liquidity comes from the IDO itself. By raising 100% CUB, 50% of that CUB gets matched with an equivalent value in IDO XYZ token. This creates an LP with liquidity so that the token may launch without the team needing to raise liquidity on their own.
This also provides the LeoFinance community with an opportunity to research the project, decide if it is worth taking a risk on and then participating based on that decision.
By providing our community this opportunity, the project has the chance to prove themselves to the community. They gain access to one of the most battle-hardened and engaged communities in the entire crypto industry and make all participants instant liquidity holders in their project.
For CubFinance, this solves the short-term issue we saw where the CUB price was negatively impacted by the selling of CUB out of the Kingdom and into CUB-BUSD in order to participate in IDO #1.
Instead, 100% CUB is used in the IDO. It means that anyone who wants to participate needs to either hold CUB in the Kingdom already or convert CUB-BUSD into 100% CUB or if they don't have any CUB yet; go out to the open market and buy some to participate in the IDO.
In many - likely all - cases (including IDO #2, the IDO Price of the CUB-IDOtoken LP is discounted vs. the actual launch price.. for example, deposit $100 worth of CUB and get $120 in CUB-IDOtoken value. Details on this will be announced with each IDO itself as it changes from project to project
After the successful IDO, a new farm (or Kingdom) is launched on CubFinance and incentivized with a small CUB Multiplier. This allows the project to incentivize ongoing liquidity providing and also gives 💎🐾 the opportunity to earn CUB for sticking with the new project.
In the case of IDO #2, this is going to be a CUB-IDO#2 Kingdom LP (since they will launch the farm on their new AMM Platform and we will create a cross-composable Kingdom to earn yield in both IDO#2 and CUB tokens).
CubFinance's Second IDO: A Game Changer for CUB Utility
IDO #2 is where things get really interesting for CubFinance. They're looking to raise over $1M+ in initial liquidity. This liquidity will NOT be held by their team in any way.
Instead, our Launchpad V2 model puts the liquidity in the hands of the LeoFinance community (and their community, should they participate in the IDO).
It decentralizes the holding of their initial liquidity as opposed to other IDO models where the raised liquidity via IDO is held by a team treasury.
- 100% CUB goes into the IDO contract ($1m+ worth of CUB)
- 50% of that CUB gets burned permanently from the supply ($500k+ worth of CUB)
- IDO#2 tokens are added to the liquidity pool to match the 50% CUB
- CUB-IDO#2 LP Tokens are claimed by users on https://cubdefi.com/ido
- IDO #2 Platform launches with one of the initial launch farms being CUB-IDO#2
- CubDeFi.com/Kingdoms launches a new Kingdom LP for CUB-IDO#2 (earning both IDO#2 harvests which autocompound back into CUB-IDO#2 LP + CUB Harvests)
The project running the IDO gets $1m+ in initial liquidity to launch their platform.
Note: they've also raised private funding for an IDO#2-BUSD and IDO#2-BNB farm when they launch.. "these 2 LPs will be locked liquidity held by VCs". They'll announce details in their own blog posts as they approach launch. This means there will be 3 launch farms, CUB being the largest of the 3.
We've discussed some other collaboration with the IDO #2 team and believe that we'll also have a second farm for CubFinance (possibly a CUB-ETH farm) on their platform. Additionally, bLEO may get added as an option if they choose to try and capture some TVL via our Wrapped BEP20 LEO Token.
For CUB, we're seeing a massive new utility added.
In the short-term: we're seeing $500k+ worth of CUB burned in a single IDO. We've fixed the short-term issue of seeing Kingdom hodlers forced to sell some CUB into BUSD to participate (since a 100% CUB raise means the opposite: CUB-BUSD LPs have to buy CUB with BUSD to participate and Kingdom hodlers can participate instantly 1:1).
In the long-run: we're seeing a massively deep new liquidity pool added for CUB via CUB-IDO#2. This liquidity pool will be incentivized on their platform with harvestable rewards to incentivize liquidity (likely seeing 50-150%+ APY rates, similar to the farms on CubFinance today).
CubFinance also launches a Kingdom that will generate APY from this LP (which is autocompounded back from IDO#2 tokens to CUB-IDO#2 LP Tokens) + pays some CUB Harvestable rewards APY.
A massive dwindling of the CUB Supply, a new LP that is likely to rival the value of CUB-BUSD and CUB-BNB Pools and a cross-pollination with an up-and-coming BSC AMM competitor. Bullish for the 💎🐾
What is IDO #2's Platform?
They've asked us not to release any major details about their platform or its inner-workings. Instead, our community will have to wait for their official blog posts to start dropping.
Their current status: getting a few major auditing firms to sign off on their contracts. It's a relatively large project with over 8 smart contracts governing the AMM, LPs, IDO#2 token, referral program, etc.
They will wait to launch on CubFinance until their IDO is completed and published by their auditing firm(s).
They've given us a short-breakdown teaser of what their platform looks like to share here in our LeoFinance team update:
"Our upcoming platform launch will drive intense liquidity to a brand new automated market maker on the Binance Smart Chain. We anticipate rivaling the liquidity of the top 15 AMM platforms that have operated for months on BSC through our liquidity mining incentive programs, referral programs and unique tokenomics.
To give you a small window into what we are building --- our platform will resemble similar AMMs that exist today: Pantherswap, Pancakeswap and Biswap.
We cannot wait to unleash this project on the BinanceSmartChain and to the Leo & Cub Finance community in our forthcoming blog posts!"