Posts

Is positive feedback gonna kick in Cub growth?

avatar of @d-company
25
@d-company
ยท
ยท
0 views
ยท
1 min read

Maybe it's "probably nothing". Maybe the burning of Cub reaching historical high is just temporary. Yeah maybe. Well.

Cub price has been steady for a while, that is despite the down trend with most other crypto in this space. Today it shows the sign of going up.

Or maybe the "positive feedback" we are expecting finally arrive? Hmmm... intriguing... :D

What is a positive feedback!?

It is a loop that goes like this:

Liquidities in those Hive related farms grow ---> more profit generated by the MTB revenue ---> more CUB buyback and burns ---> higher APR for CUB farms ---> Liquidities in those Hive related farms grow further (back to where we started) ---> and so on and on ...

Positive feedback loop has to stop somewhere. But judging by the comparative scales of Hive's overal liquidities and those on Cub as well as the Cub system's past few weeks performance, I doubt it would stop any time soon.

Of course, if someone holding a lot of CUBs decides to sell then the price might be pushed down a little bit, but given the conditions above, what's not to like? That is, even Hive price drops!!

As long as liquidities below keep growing, Cub will be fine.

Oh, a possible threat is when Hive witnesses decide to reduce the HBD saving rate below 20% APR, indeed. But for now, given the analysis we have seen on Hive by other more senior Hivers, it seems unlikely for quite some time. So, chill.

Sit back and let the magic work. ๐Ÿ˜Ž๐Ÿ˜Ž๐Ÿ˜Ž

Posted Using LeoFinance Beta