Ask Leo: Is market price the true $value of a DeFi platform like PolyCUB
Greetings to my esteemed Lions 🦁 on the LeoFinance ecosystem and hive blockchain. It's another day and a time to know the factor that indicates the true $value of a DeFi platform. It's your friend @faquan, saying hello from this part of the world.
Today's post will focus on how to know the true value a DeFi platform, whether it's known by the market price or other variables.
Many a times, people on DeFi platforms have judged the system with the current price of the token without looking at the total value created by the platform.
For me, price is one of the indices used in calculating the value of a platform, but it must go in an admixture of other variables that the platform is putting in place.
To verify this the true value of a DeFi, let's look at the PolyCUB protocol. For instance, the current price of PolyCub is at $0.1465.Source Looking at this from a first cite view, a potential investor will be discouraged due to the fact that after the first 24 hours that PolyCUB reached about $4, it has fluctuated between $0.13 to $0.15. With this current market price, one could conclude that the PolyCUB project isn't profitable at all.
On the other hand, if you want to calculate value from developmental standpoint, then one will say that the PolyCUB project has attained a high level of values.
For instance, the pHBD-USDC vault alone in June gave the protocol about $6,000 for just wrapping and oracle staking. Another area is in terms of liquidity pools and the percentages and fees that comes to the protocol.
pHBD-USDC has about $350k worth liquidty pools on the polygon network, while pHIVE-POLYCUB pools stands at $154,779, and pSPS liquidity pools is worth $27,270.
It's obvious that the level of values created by PolyCUB Multi-Token Bridge have been very overwhelming, leading to other vaults like vexPolyCub which has locked up over 40% of the total xPolyCub available.
I'll conclude by saying that, market price isn't a complete process of calculating values in a DeFi platform, but it's one of the components.
Thanks!
Grace and peace to you all
Posted Using LeoFinance Beta
