Kingdoms Come - What to Expect From CubDefi's Kingdoms
I'm really excited about the upcoming release of Kingdoms. In addtion to farming at CubDefi, I have been farming some on Goose Fiance and have had some experience with their vaults. Assuming what CubDefi is implementing is a variant of that, here are a few things their that we might expect, and a couple I'm less sure about, with the Kingdoms.
Optimized Auto Compounding
Kingdoms will be auto-compounding, they have already anounced that.
Based on the current APR, the system will likely calculate the most beneficial compounding frequency and will compound at that rate for all participants in the vault.
By being auto-compounding, we don't need to worry about "Should I re-invest now? Or should I wait?" The system does it for us, and likely much better than we would.
Maximized APY
By automatically optimizing the compounding rate at a much higher frequency than makes sense individually, the Kingdoms will maximize annual percentage yield. For high APR vaults, the impact of high frequency compounding is dramatic.
Drastically Lower Reinvestment Fees
Each compounding will be done for the whole Kingdom as one transaction rather than hundreds or thousands of transactions if we were all doing individual compounding. And in return, the low transaction costs dramatically increase the optimal compounding rate, again improving APY.
Earning LP of the Pair You Stake
This is one I'm not sure CubDefi will do, but is a very interesting twist that I hope they are implementing. It is possible that rather than earning CUB, we will be earning LP of the pair you are staking. So if you are staking CUB-BNB you would be earning CUB-BNB LP.
A New Leo Based Stable Coin
Again, this may or may not be coming but has been implemented in the Goose Finance vaults. In addition to earning LP, we may see the first stable coin in the LeoFiance/Cubdefi ecosystem - and we may be earning it in addition to the LP we are earning.
One Way Or Another It Should Be Great
Whether we earn CUB or LP, whether they add a stable coin or not I think it is going to be great for CubDefi and its members. Just the savings in transaction costs and increased compounding will make the Kingdoms well worth the wait.
I'm looking forward to its release and will be moving my small stake into the Kingdom! So I guess the only question is wen?
