My Thoughts About The Near-Term PolyCUB Roadmap!

PolyCUB is proving to be one of the most intriguing DeFi applications released in 2022. This is the year of DeFi 2.0 and the Leo Finance team seems to have done their homework really well. They are providing us with some of the best and proven DeFi 2.0 features out there just like they did with Cub Finance (DeFi 1.0). The Cub Finance DeFi stack is evolving pretty well and lots of exciting stuff to happen in the near future.

Yesterday, the near-term roadmap of PolyCUB was released, and to my shock, there was a groundbreaking announcement regarding Collaterlized Lending aka Self Paying Loans in DeFi 2.0. Almost a month ago, I wrote about how self-paying loans work. At that time, I was researching about DeFi 2.0 and how it is different and better from DeFi 1.0. What timing! Thanks to my research, it has been fairly easy for me to follow what the heck is happening while many others are still trying to figure out their shit. Don't worry, I got you if you are a DeFi newbie. Just follow along!

In this blog, I am going to discuss what to expect in terms of development in PolyCUB yield optimizer application. I will also throw some light if you should buy PolyCUB and stake that in xPolyCUB or not. Let's start

Cub Bonding To Achieve Infinite Liquidity

In order to be self-sustaining, a DeFi protocol must acquire as much liquidity as it can so that it doesn't have to rely on LPs in long term. I have explained the concept of Protocol Owned Liquidity in detail in a post I wrote just before the launch. It was first implemented by Olympus DAO. Make sure you check it out to understand it a little better.

"Bonding" is a mechanism in which LPs provide LP Tokens in exchange for PolyCUB at a discounted price. The LP Tokens will become a part of the treasury. Bonding would allow PolyCUB to acquire its own liquidity over time. This makes PolyCUB its own market and it helps to keep operations going even if there are fewer LPs. That's DeFi 2.0 liquidity sustainability for you.

When the emission rate of PolyCUB goes to near zero, the protocol will start buying PolyCUB to provide rewards to LPs. So we all are in for a long term, sustainable yields unlike DeFi 1.0 protocols where users have to keep on moving funds to chase high APYs on new platforms.

Self-Paying Loans With xPC As Collateral

The idea of getting crypto loans where you don't have to pay them back from your own pocket sounded magical to me. I am pretty sure this is mind-boggling for so many traditional finance 'experts' out there. 😂 It would almost sound like a scam to them but it's not. It's math and smart contract technology combined. Never expected Khal and the team to start talking about its implementation in PolyCUB so soon. It's actually very simple to understand:

Take a crypto loan in USDC (from protocol's treasury) by locking in your xPolyCUB as collateral.
Yields earned from xPolyCUB will be used to pay off the loan with interest over time.
If the yields from xPolyCUB are low, the protocol will take more time for repayment.

The Only Debt Is 'Time'

Moreover, you can earn further yields on your crypto loan to buy more PolyCUB and repeat the process. You can go full circle with PolyCUB. I am pretty excited about this feature going live. It would change the lending world forever.

Should You Buy PolyCUB in 2022?

Now comes the golden question. I am going to keep this section pretty straightforward. Should you buy PolyCUB in 2022?

Yes

PolyCUB is hyper deflationary, inspired by Bitcoin. The emissions rate will decline to make it a scarce token.
xPolyCUB staking - set it and forget it. XPC to PC ratio is designed to go up forever. Deeper incentives for LPs.
Bonding to achieve liquidity and long term sustainability yields
Self Paying Loans 😎

Since the halving process will keep on cutting the supply, it would be difficult to earn more PolyCUB later on. The earlier you invest, the more you get. So if you want to hop on the PolyCUB train, now is the best time.

No

Crypto is risky and so is DeFi. You would be locking your funds in a smart contract which are prone to hacking. If you are not willing to take that risk, don't do it.
It's a new token as compared to CUB. So going all in is a bit risky. Also, DeFi 2.0 ideas PolyCUB is are also new and evolving with time.
If you don't have money to invest. 😋

I hope it helps! Please let me know what are you thinking? I didn't want to buy PolyCUB because I was satisfied with my daily airdrop. 😂 This short-term roadmap made me rethink and I might buy some before it's too late. I am bullish on PolyCUB. What are you going to do? Comment below!

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