Using pHBD and Other PolyCUB V2 Vaults as Synthetic Assets for xPolyCUB Collateralized Lending - Another All Round Yield Accrual Channels Unveiled
Greetings to my esteemed Lions 🦁 on the LeoFinance ecosystem and the entire hive blockchain. It's another day and time to share the amazing nature of PolyCUB and how we can take advantage of the opportunities that are embedded in PolyCUB. It's your friend @faquan, saying hello from this part of the world.
Today's post will focus on PolyCUB collateralized lending and how to incorporate PolyCUB V2 vaults into the project as Synthetic assets and to reduce the liquidty risks that could arise in the process of fall in market price.
It's crystal clear that @khaleelkazi and the LeoFinance front desk have declared that the new direction of PolyCUB is to continuously create values.
Like @Khal said in one of the previous weekly AMA that:
This new phase of PolyCUB will be centered around Value Accrual. Every new vault created will produce even more value for PolyCUB and increase the PoL.Source
Based on this fact, every PolyCUB V2 vaults is supposed to replicate or create more value that'll add more rewards in USD to PoL. PolyCUB owned liquidity (Pol) has been a very important yield optimizing platform that's not really pronounced. It should be noted that by now everyone knows that 0.25% fee goes for wrapping and unwrapping pHBD and other PolyCUB V2 vaults, which is integral to the setting PolyCUB above it's current market price.
What's PolyCUB Collateralized Lending?
...users will be able to stake their xPOLYCUB tokens into the collateralized loan contract and take out a loan from the Protocol Liquidity in exchange.Source
Based on the above, one will observe that the relevance of holding xPolyCub is very essential in participating in the upcoming collateralized lending. Just like the normal traditional banking loan, xPolyCub holders will loan some amount of their xPolycub stakes to those in need of them in exchange for some interest and after the said loan contract, the xPolycub holder gets back his or her xPolyCub as well as the interest that have accrued from the loan contract.
Converting pHBD and Other PolyCUB V2 Vaults as Synthetic Assets
We already know the impacts that the PolyCUB V2 vaults have brought to the LeoFinance ecosystem, most especially the pHBD-USDC vault. This inturn will be converted into synthetic assets and be collateralized for potential lenders to use in running any transaction within the hive blockchain.
I'm not sure about this fact, but I think one use the loan to buy tokens like HBD on-chain and at the end of the contract return the quality of loan with the interest as designed by the LeoFinance front desk.
One model is to lend synthetic assets that are backed by assets in the treasury. The great part about this model is that the treasury will be earning yield on those assets that it already holds. It's then able to lend these assets out with a low APR.Source
Deploying the PolyCUB V2 vaults as synthetic assets, fits into this project because, the V2 vaults already have existing liquidity pools in their respective multi-chain bridges. This will the PolyCUB collateralized lending not to create new liquidity pools for the lending project.
The idea behind this project is to continuously create values and yield for the PolyCUB treasury.
Anything we deploy into this new PolyCUB V2 will be based around value accrual. So essentially same goes for collateralized lending; it's main focus is maximize value accrual for the treasury.Source
I'll end by saying that incorporating the PolyCUB V2 vaults into the xPolycub collateralized lending is unique and will create yields continually for the PolyCUB project. Although, this project isn't yet out but with the vision of khal and his team, it'll be one of the amazing project with yield optimizing goal.
Thank you!
Posted Using LeoFinance Beta
