For those that were listening to the Roundtable yesterday, there was a discussion on the launch of the CUB IDO.
What is an IDO?
IDO stands for initial DEX offering. its similar to an initial coin offering, and similar in concept to the fiat finance world of an IPO (Initial public Offering).
Usually an ICO (initial coin offering), is a process where a coin is sold to usually the developers or founders, and these funds are used to develop the ecosystem. so where the IDO is different is that it is all governed by smart contracts.
This allows unique offerings, and CUB finance is taking advantage of this.
What is CUB finance thinking about launching?
We'll have to wait for all the details form a post from leofinance, but what I understood in the roundtable, was that CUB will be launching a coin on polygon, and there will be a number of tranches sold, each subsequent tranche at a higher price. This provides an incentive to get in the early tranches, as you know it will be more valuable down the track if fully subscribed (that's the risk I guess, if it doesn't get fully subscribed in future tranches there could be downward price pressure)
There was talk on the roundtable, that instead of just receiving a coin, you could receive two coins and then these can be staked in a liquidity pool. I'm a bit light on details, but I guess we will all find out in the coming days on the detail.
Why this could be great for CUB
Well, the thing is, when you stake your CUB to receive the IDO coins, you don't get your CUB back, its burnt. This means the total supply of CUB will reduce, maybe quite substantially. This will have two effects
- Reduce the CUB in the kingdoms, thereby increasing the yield in the kingdom
- Create buying pressure for CUB for those that want to participate in the IDO
What's happening on price already?
It's not just me that thinks this could be positive for CUB, people are getting in already to buy up CUB, in preparation for the IDO.
The price has moved as shown below: (Source:dextools.io)
What else is exciting about CUB?
well today.. we are expecting all the dens and farms to migrate across to kingdoms (except, the bLEO, CUB and DEC? farms). This frees up multipliers for the CUB kingdom, with expectation the multiplier will double, resulting in a higher yield.
I am excited about the higher yield, because that allows me, and everyone else to accumulate more CUB in the kingdom, in preparation for the IDO.
So there are some exciting times ahead, I'll be keeping an eye out for all the developments in CUB finance in the coming days and weeks!