Polygon CUB has been in the works for months now. We've been designing, developing and radically re-working our app for the Polygon blockchain to create the best platform of synergy between LEO, CUB and POLYCUB.
It's been an interesting journey in thinking about, designing and building this platform. We're finally ready to launch and the platform is nearly unrecognizable to the initial designs.
With all of this said, we went out to the far reaches of DeFi. Going deep into the trenches on this space and looking for ways to vastly improve PolyCUB AND most importantly; find the most valuable synergies with LEO and CUB.
LEO as a holding company is something we've discussed many times in the past. It's the umbrella that owns everything. All value is captured back to LEO in the long-run.
CUB is our DeFi extension. It's enabled us to build deep liquidity on the Binance Smart Chain for bLEO which will become increasingly important as we turn our focus to hardening LeoBridge and extending it into the Multi-Chain future.
POLYCUB brings a whole new set of opportunities to our community. As we say continuously: the mission of LeoFinance is to expand the width and depth of our community
- Width: build new features, exciting applications and attract new users to our community
- Depth: build new features, exciting applications and deepen the value incentivizes for being a 🦁 in our community
When CUB launched in March of 2021, it supercharged our platform. Our KPIs went off the charts - we saw massive growth not only in the value of LEO but also in the number of users active on LeoFinance, new account signups, daily traffic to the platform, etc. etc.
We also saw an incredible deepening in the opportunities available to the LeoFinance community. The world of DeFi on Binance Smart Chain opened up to all of us and we bridged it all together with Hive, ETH and BSC working in tandem.
Polygon CUB is an entirely new platform with some familiarities. We've kept the UI very closely resembling CUB on BSC. This will make it a seamless experience for anyone who's familiar to jump right into the opportunities of Polygon.
If we could go back in time, there are a number of features we would've built into CUB from the beginning. Many have been discussed in various forms during the AMAs and we've managed to integrate some incredible features into POLYCUB that make it a truly unique DeFi platform.
LEO, CUB and POLYCUB go hand-in-hand. As we expand into the multi-chain future, the opportunities are going to rapidly & exponentially grow. Our mission statement is fulfilled through this multi-chain vision as we track our KPIs and look for growth on all fronts: new community members, monthly traffic to leofinance.io, value for LEO, CUB and POLYCUB, etc.
In this post, we'll explore the features of PolyCUB, dive into some sections of the POLYCUB Docs and also announce our massive overhaul to make POLYCUB a DeFi 2.0 platform. From the tokenomics to the backend contracts to the opportunities on the platform, POLYCUB is a true masterpiece and the value it drives back to CUB and LEO will be enormous.
What is PolyCUB?
PolyCUB is a yield optimizer platform that provides a safe and easy way for DeFi users to discover yield and earn on the Polygon Network.
Not Your Average Yield Optimizer:
PolyCUB is not your average Yield Optimizer platform. We've re-worked the xSUSHI staking contract and added it to our platform mechanics.
In addition to the yield generated by base platforms (i.e. Quickswap, Sushiswap, etc.) PolyCUB Kingdoms also pay yield in the form of harvestable POLYCUB tokens.
Farmers earn autocompounding yield from platforms like Quickswap and Sushiswap. Those are autonomously added to their deposited balance and can be withdrawn at any time.
On top of this standard yield, farmers also earn POLYCUB tokens. When a farmer earns POLYCUB from staking LP tokens, they are locked for X blocks. Farmers can claim their POLYCUB harvests at any time, but if they claim it before the X blocks locking period, then 50% of their harvest is returned to the xPOLYCUB contract.
The farmer who claims their POLYCUB harvest early (before the X block staking period) receives 50% of their POLYCUB yield
The other 50% is returned to the xPOLYCUB staking contract and can be claimed by users who stake POLYCUB into xPOLYCUB.
This mechanism works similarly to platforms like Adamant Finance.
Set it and Forget it, Save on Fees and Maximize Your Yield
PolyCUB vaults automate the process of claiming base platform (i.e. QuickSwap/Sushiswap) yield and compound it into each user's base deposit position. This dramatically lowers gas costs, saves time from manual compounds and maximizes the potential yield you can earn.
Proven Tokenomics for a Proven Community
PolyCUB (POLYCUB) is our native token for the PolyCUB yield optimizing platform. Users can earn POLYCUB by participating in any of the Kingdom vaults or by staking xPOLYCUB to earn the 50% fee penalty generated by other farmers who harvest their yield before the X block locking period.
Just as our community has existed for many years and proven itself as one of the most ambitious, organized and diamond-pawed groups in the crypto space, so too do our tokenomics derive from proven mechanics and existing platforms that operate in this space.
PolyCUB borrows the essential aspects of 3 major platforms in DeFi:
- Sushiswap (xSUSHI staking contract = xPOLYCUB staking contract)
- Adamant Finance (50% early harvest penalty paid back to xPOLYCUB stakers)
- Autofarm (Cross-composable yield farming contracts that generate yield in 3 ways: normal LP trading fees, base platform yield and POLYCUB yield)
The xPOLYCUB staking mechanism allows any user to buy and stake POLYCUB and earn a % of the yield generated by all other farmers on the platform who may decide to claim their harvests before the X staking period is over.
This encourages yield farmers to hodl their harvests and wait to claim until the staking period is over.
Simultaneously, it creates an interesting game theory for all users: many farmers will likely claim their harvests early for various reasons. I.e. they need liquidity fast for an opportunity, believe something is going to change quickly in the market, etc.
With this knowledge, other users/farmers will buy and stake POLYCUB into xPOLYCUB to leverage up and earn this 50% fee in addition to the other mechanism for earning as an xPOLYCUB hodler:
- xPOLYCUB earns from base APY in the emissions of new POLYCUB tokens in addition to the 50% fee they earn from all early harvests of POLYCUB Kingdom rewards
Users who stake POLYCUB earn a high yield from 2 mechanisms:
- POLYCUB harvesting penalty (50% of harvests claimed before the X block staking period are deposited to the xPOLYCUB contract and can be claimed by xPOLYCUB hodlers
- Base APY from our platform (a % of POLYCUB emissions are paid out to xPOLYCUB stakers)
Management Fees & Treasury
A 10% management fee is generated during each harvest of other platform yield on Kingdom deposits - i.e. when Quickswap / Sushiswap vaults are harvested for platform autocompounding, 10% of that yield is set aside and sent to the PolyCUB PCV Treasury while the other 90% is autocompounded into farmer deposits.
There are many approaches to management fees that DeFi platforms have taken. Over the past several months, it's become clear that one of the most sustainable models to generate platform value is to use management fees to create a project treasury.
This treasury approach can also be done in myriad ways. Here is how the PolyCUB Treasury will work:
- Management Fees are sent to the PolyCUB Treasury Pool
- These fees are collected and deposited into yield-generating vaults
- The yield generated from these vaults is used to buy and burn POLYCUB in perpetuity
We believe this approach brings the highest degree of value to the PolyCUB platform in the long-run. PolyCUB is much like CubFinance, LeoFinance and all of the apps we build for our community ecosystem: we build to last. A never-ending development schedule will bring new features to PolyCUB just as we've seen for the past ~3 years with LeoFinance x CubFinance.
While other platforms seek short-term returns and small additions, we will always seek out a long-term roadmap of relentless development.
None of us know what the future holds for this DeFi industry but one thing is for sure: liquidity pooling, DEXes and other DeFi protocols are here to stay.
The PolyCUB treasury pool will continually seek out the best opportunities to generate yield safely, install a value capture mechanism for the POLYCUB token and create infinitely deepening liquidity & TVL.
Protocol Controlled Value (PCV)
Platform Controlled Value or Protocol Controlled Value (PCV) is a concept that has been actively implemented by a number of new DeFi platforms.
Many are calling this concept - when combined with various other platforms/features - DeFi 2.0.
PCV on PolyCUB
On PolyCUB, we've implemented our own version of protocol controlled value. The protocol generates revenue through the 10% management fee on autocompounding harvests - i.e. when a Sushiswap or Quickswap Kingdom is autocompounded, 90% of the yield is autonomously compounded into the balance of the protocol participants and 10% of the yield is set aside into the PolyCUB Treasury address.
This address deploys the management fees into various assets and deposits those assets into vaults to generate yield.
PCV Assets include:
LP Yield from these assets include:
As the TVL in PolyCUB Kingdoms continually grow over time, the PolyCUB PCV will also grow and create endlessly deepening TVL & POLYCUB burns.
The greater the PCV, the greater the yield on assets.
How is PCV Yield Utilized In the PolyCUB Ecosystem?
As PCV generates yield, it will autonomously use that yield to purchase PolyCUB in a price-agnostic manner. This provides a sort of Risk-Free Value (RFV) on the POLYCUB token as the yield provides a basic price floor.
Of course, a speculative value and the utility of yield on POLYCUB via xPOLYCUB staking will also play key roles in the price of POLYCUB as a utility token for the PolyCub yield optimizer platform.
This system pulls inspiration from a number of DeFi projects. OHM was one that revolutionized much of this thinking with their 3,3 model, POL (aka PCV), and RFV concepts.
Future-Proof: Evolution in Generating PCV and Steady Rise in RFV Over Time
As the PolyCUB protocol matures, new forms of PCV-generating DeFi features will be introduced. As part of our roadmap, we'll be deploying a number of deep incentive-bearing DeFi utilities for our community on the Polygon blockchain.
All of these utilities will be aimed at creating new opportunities for our users while simultaneously accelerating the generation of PCV in a similar manner to the management fee on Kingdom dynamic seen at launch.
As the platform matures, our goal is to see a continually accelerating growth of PCV which in turn creates a steadily growing RFV (the risk-free value of POLYCUB tokens is steadily rising as opposed to steadily decaying in "DeFi 1.0 yield apps".
One of the first post-launch features will dramatically increase PCV and simultaneously create the benefits of:
- Less price volatility
- Deep POLYCUB liquidity
- POLYCUB token burning black hole
This will be a bonding event - much like those seen on OHM, KLIMA and projects similar to it - where users can bond LP tokens to the POLYCUB PCV Treasury, earn an incredible ROI from the bonding incentives and simultaneously benefit the platform's growth and sustainability.
During the first month of PolyCUB's launch, the emissions rate will start high and continually drop every week for 4 weeks
Beyond Launch Month
After launch month (starting on week 5) POLYCUB emissions will drop to 1 token per block and then will continually drop the emissions rate by 50% on a monthly basis (instead of weekly basis seen during the first 4 weeks)
A Deflationary Future
Cross-composable yield vaults, xPOLYCUB and LP Bonding are just the beginning of our vision for growing PCV. As we continually and rapidly add new utilities to PolyCUB, we'll look for ways to relentlessly expand this PCV.
Eventually the PolyCUB PCV yield will flippen the ongoing emissions rate for POLYCUB. This means that the treasury yield will eventually buy/burn more POLYCUB than is being created by emissions every day.
At this point, we believe the POLYCUB token will reach a new level of utility and price stability - allowing us to continually expand the developments of PolyCUB to deliver the best opportunities for yield farming on the Polygon Network... forever.
Just as CUB (BSC)'s goal is to be a one-stop shop for BSC-based DeFi.. The long-term goal of POLYCUB is to be the one-stop shop for Polygon-based DeFi so that we can save our users time and potential rug pulls/security risks from having to go out and find other Polygon platforms while also attracting a wider community to our user base.
- Starting Supply: 1,300,000 POLYCUB
- 1,000,000 POLYCUB Airdropped Over a 2 Month Period to CUB Stakeholders (Our BSC Platform)
- 200,000 POLYCUB For Developer Fund (Locked in a 6 Month Drip Smart Contract)
- 50,000 POLYCUB For Initial POLYCUB-USDC Liquidity Pool
- 50,000 POLYCUB For Initial POLYCUB-WETH Liquidity Pool
- Starting Price: $1 USD
- Starting Liquidity: $200,000 USD
- POLYCUB-USDC and POLYCUB-WETH pools will have a starting price of $1 USD per POLYCUB ($100,000 USD in value per pool)
- Max Supply: 26,000,000 POLYCUB
- Protocol Controlled Value: Built From 10% Management Fees on Kingdoms At Launch, LP Bonding and Other PCV-Growing Features Deployed Over Time
- The PolyCUB treasury is built autonomously via the 10% management fee generated on Kingdoms yield. This treasury will LP assets and capture value to POLYCUB by using the yield it generates to buy/burn POLYCUB in perpetuity. Inspired by platforms like OHM.
Ahh the beloved word. We can already hear the endless pool of questions and wens waiting around the corner.
Originally, POLYCUB was designed to be IDO'd on CubDeFi. The plan was to operate a large-scale IDO where 100% CUB would be deposited and 100% burned (no raise of any kind).
This would've essentially been the equivalent of "evolving" your CUBs into POLYCUBs... a few who have seen the details said this looked a lot like Pokemon.
After seeing the success of other platforms - one notably being on our same base blockchain (Splinterlands's $SPS), we decided to design and consider a different approach...
We went to the drawing board, mocked up countless spreadsheets and weighed the potential impacts of doing an airdrop instead of a 1-1 CUB burn IDO.
Ultimately, we came to the conclusion that CUB IDOs are fantastic for collaborating with other platforms and getting them initial liquidity and traction (if you go back to last Friday's AMA, you can hear the discussion about the upcoming IDO for a new BSC platform that came to us. It's extremely exciting).
However when it comes to launching a sister platform like POLYCUB, we decided on this model. A 60 day airdrop to CUB stakeholders.
CUB is our DeFi token. It enabled us to build deep liquidity and expand onto Binance Smart Chain in a way we never thought possible before 2021. POLYCUB is our DeFi extension to Polygon, it will bring a whole new world of opportunities to our community and expand us on a level we've never seen before.
POLYCUB will be airdropped to anyone staking CUB:
- CUB Kingdom Stake (100%)
- CUB-BUSD Pool Vault (CUB Side Only - 50% LP Position)
- CUB-BNB Pool Vault (CUB Side Only - 50% LP Position)
The rough figures are at least 0.15+ POLYCUB per 1 CUB staked with snapshots taken daily for the 60 day period. For example, if you have 1,000 CUB in the Kingdom you'll get ~150 POLYCUB airdropped daily over 60 days to your Polygon address (~2.5 POLYCUB per day).
The airdrop contract is all set and we'll release a lot more details on how to participate as we approach launch day. For now, know that holding CUB in one of the 3 above places is a necessary prerequisite for the airdrop.