Cub DeFi breaks $17 million TVL after adjusting farm/den multipliers
Recently, the @leofinance team adjusted the multipliers of many of the farms/dens and also made the decision to make many of the pools inactive. 48 hours notice was given and a 24-hour period was also announced in which all deposit fees would be set to 0% so that people would be allowed a chance to shift their liquidity around without penalty. You can read more about the initial decision here. The change has resulted in major fluctuations in projected APRs of many liquidity pools — the main goal is to attempt to increase incentives to provide liquidity in tokens that benefit CUB the most.
A beneficial side effect of this depositless grace period was that we saw TVL (Total Value Locked) increase a lot, setting multiple all-time-highs and at the time of writing this article currently having just broken $17 million USD. (You can see in the article I linked above TVL was around $10 million only a few days ago!) With a current CUB market cap of $4.5 million, the amount locked is nearly four times the current trading value of all the CUB in existence.
As mentioned by the Leo team in a tweet... "you can't make everyone happy." A few people were griping about some of the farms and dens being made inactive when people had calculated if fees would be worth paying before pulling the trigger — but in my view the 48-hour notice was sufficient along with the opportunity to relocate liquidity without deposit fees for 24 hours. CUB is an experiment being carried out live, and as such it is only natural that changes will need to be made. If you are investing in the early stages of any project, even more so than normal, you need to be aware of the unique risks attendant to that.
I wonder how many people break the cardinal rule of investing — only invest what you are willing to lose? I'm thinking the percentage is quite high, especially among those who FOMO into already rising assets believing they will only go up forever, or those that expect APRs to remain as they currently are and confuse a projection with a certainty. It's important to remember we are never entitled to any "sick gainz," and it's best to count our blessings when things go swimmingly and just take the loss graciously when they don't.
In any case... I would personally rather see adjustments continually being made than be providing liquidity on a different platform whose team is largely inactive and incommunicative after the beginning stage and only launched a token in order to capitalize on DeFi hype and leech fees from users. You can count me a willing guinea pig in this experiment and I don't mind shifting liquidity around even if some yields lower as a result. They are all much higher than what is available in traditional savings accounts, which in truth do not even break even in terms of real-world inflation (regardless of the "official" numbers posted.)
Wow, what a gr8 r8 m8! Sign me up! — (taken from an advert for a traditional savings CD)
There are many reasons I'm bullish on LEO and CUB long-term... a major one is the burn mechanisms being put in place, which are way more intense than most other platforms that often keep a significant portion of fees for the team. Since the LEO team is not trying to rely on fees to make revenue, 100% is being used to burn CUB and LEO at an 80/20 ratio respectively. This has resulted in over 10% of the CUB supply being burned so far — and when Leo Bridge releases, the burns will only increase in size.
Now that the token emission rate is 1 CUB per block, the older the token gets, the lower the percentage of CUB minted daily becomes in comparison to the existing supply. As a reminder... the value of any asset is subjective and primarily determined by the community that holds and exchanges it. The Leo team has a solid track record of continuing to add utility and innovation on top of their projects and I expect CUB to be no different, which is why I am comfortable being an early speculator on CUB. I really appreciate the ease of swapping between various pegged BSC assets on Cub DeFi in comparison to the heavy fees I would have to pay trading manually on other exchanges. When Leo Bridge releases the convenience factor is gonna go through the roof.
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Alas, I didn't get in LEO early like others did, but I have managed to reach 1000 LEO staked on HIVE as of yesterday. I'm also holding quite a bit as bLEO paired with BNB in a farm over on CUB. I'll be looking forward to the Project Blank airdrop whenever it occurs.
achievement unlocked — 1000 LP!
Leo Bridge is going to be fantastic for being able to smoothly swap funds between chains, and I'm hopeful it will present more options for moving in and out of HIVE <---> fiat as well, bypassing unpredictable exchanges like Bittrex that often disable HIVE wallets for days, charge hefty trading fees and require KYC for despositing/withdrawing fiat. However, I'm unsure as to the status of bHIVE (wrapped version of HIVE on Binance Smart Chain.) Maybe someone that knows more about that can weigh in on it down in a comment below this post.
above — graphic from @leofinance team depicting Leo Bridge in operation
. Post created by @d-pend for Leo Finance on HIVE on March 28, 2021. Images are screenshots and Deep-Dream-processed versions of CUB graphics. .
Posted Using LeoFinance Beta
