DeFi is a game that's all about gripping inflation. Whilst supply-capped coins such as BTC strive for providing useful use-cases for the ultimate goal of achieving a price uptrend, DeFi tokens have the added challenge of managing inflation, and the price is only an afterthought. The maintenance of adequate burn rates across the board is vital to the standing of the respective project's native token, and we are all are aware of what takes place once that grip slips.
Using the much more mature and established PancakeSwap as a reference, CUB is in pretty bad shape supply-wise proportionate to the amount burned.
At all times, PancakeSwap has managed to keep the circulating supply of CAKE as close as possible to the burned amount, whilst CUB struggles in that regard. The unregulated, continuous minting and harvest of CUB coupled virtually no burns after the initial %2 buyback creates quite the hike for CUB to surmount.
This is in part due to the extremely simplistic and primitive tokenomics CUB has adopted since its conception, CUB has adopted what many other no-name DeFi projects had as well; The PCS frontend and the bog-standard, barebones GooseDeFi model of tokenomics.
Goose's model of tokenomics inherently, and counterintuitively, favors the sharp sell-off of harvestable profits made in the native token, resulting in steep price declines no more than a month after the project had deployed.
This is why most DeFi projects out there are invariably short-lived. Some might collaborate and partner with others to bring in a new stream of money into the project to prolong the inevitable and pump the price of the token, but ultimately, all of them end up in the last step of the flow chart above.
The main element missing in this model of tokenomics is the element of utility, use-case, or anything that incentivizes holding the native token. With the coming migration to the autofarm model of interconnected, convoluted tokenomics, a reversal of trends is a plausible possibility for the native token, whilst also maintaining significantly higher APRs as well as outputting desirable coins, such as BNB, instead of CUB to incentivize and reward those who stake their CUBs in the vault.
With kingdoms, the game changes.
The biggest advantage for those in the Den, after the migration to this new tokenomics ecosystem is that instead of earning an extremely volatile DeFi token after staking the token itself, they earn and harvest the paramountly more established, deflationary BNB.
Simply amazing. The only other DeFi project that offer the same setup of tokenomics is Autofarm itself, Beefy Finance and very few others.
If the migration finalizes without a hitch, CUB Finance is soon going to see itself catapulted into the league of the legendary auto-compounding projects. I'm glad I was fortunate enough to have been onboarded by @trumpman through one of his Publish0x posts and subsequently exposed to CUB finance shortly afterwards. CUB is winding up for a big hit, be a part of it!
All pictures and flow charts made by me