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What Are DeFi Kingdoms aka Auto Compounding

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bitcoinflood
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I wanted to be ahead of the curve for when Kingdoms release on CubDeFi.com While I don't have the full details of it or found anything yet there are good hints as to what it will be and how it will work via the upcoming features section of CubFinance here > https://docs.cubdefi.com/upcoming-features/cub-generations

Kingdoms

From what I can tell these will be modeled after the Yearn Automcompounding Vaults. These work by investing funds into a kingdom and for the system to auto compound them without they heavy transaction fees that go with it. However CUB will take 5% as a management fee that will be used to burn CUB and LEO tokens on the Hive Blockchain.

It will work off of a CUB/BTCB LP what that means is you will need CUB tokens as well as BTCB which is a BEP token that is 100% backed by Bitcoin BTC. This BTCB token resides on the Binance and I know it sounds crazy at first to have a token that is backed by Bitcoin but it's really not. Bitcoin's fees are out of control and by having a token on Binance that represent and is 100% backed by bitcoin allows you to trade and have more trading pairs for bitcoin without those massive fees. Instead you now only pay the small Binance fee. Thus it allows for more flexibility for trading of tokens without the massive fees or risk of losing Bitcoin value.

By using smart contracts it allows the system to make one daily or hourly or whatever setting to transact all of the claims and reinvestments in that pool under one transaction instead of making a transaction per person. This greatly reduces fees but allows CUB to tap into Bitcoin reserves.

This article is meant to only help in understand what assets you should have in place if you want to get involved with Kingdoms once it gets released.

I wanted to go over this so you had an idea of how it should work and why cryptos and tokens you need to have in your hands. I can say right now CUB is only $2.88 at the moment which in a few months from now will most likely be a massive bargain! If you ever wanted to dive into DeFi do it through a good trusted system such as Cub and pick up a few. It will honestly hardly cost you anything to pick up 50 and lock them up in the den or a few of the farms.

*Please note this feature is not yet completed and what you read in this article is subject to change by the time it is fully released.

Posted Using LeoFinance Beta