About a week ago I joined Cub-Finance myself.
As this was my first DeFi-Project that I got involved with, I had a few questions in my mind.
How does the value of my staked LP change when prices of the tokens change?
One of these questions was, how Price changes of the underlying assets (CUB in my case) impact my USD amount that is locked.
I've read a few times, that the Dollar amount does not change in a Farm, however after doing a little research this is not true.
As I wanted to know exactly how, for example, a 100% increase in CUB Price will affect my profits of this increase, i digged a little deeper and found some formulas.
Based on them and also because I couldn't find something similiar, I have build a little tool that helps calculating the performance and also the difference to just hodling the coin (without profits from harvesting.)
You can find it here:
The usage is pretty straight forward:
The Green Box is the Input Box:
Amount Locked in $ = Total Liquidity in a certain Pool
Price Token 1 = Price of the token where you want to simulate the price change
Price Token 2 = Price of the second token
Own Amount in Pool = Your total amount in USD, that is locked in this pool
Price Change Token 1: The Price for the Token, that you want to make your simulation based of
On the right side you can see the outcome:
The value of your holdings after the price change, as well as how much of each token you will own if you unstaked at this point.
And also Performance measures, compared to simply holding the token.
I hope this little tool helps some of you!
If you have questions, feel free to ask.
Also, if you are interested, I can explain the calculation process behind it in greater detail! Just let me know! :)
I really love CUB-Finance.
I initally started with 400$ in CUB-BUSD Farm about a week ago, but I added another 100$ in the CUB-Den this week.
If I can free up more funds, I will for sure invest more!