RE: RE: How does Cub Finance add value to LEO?

The price of CUB was falling because more people were selling it than buying it.

Fresh CUB was being printed to pay LP rewards, which would then be sold.

A cycle that caused price to spiral down because there was no incentive for buyers to step in to match the sellers.

But now that the MTB generates revenue from HIVE wrapping fees, the platform itself has become a buyer of CUB.

The MTB is making enough money right now to match those selling the fresh CUB being printed and sold as LP rewards.

Hence price has found a sustainable equilibrium point.

The game changer is that the Cub platform itself is generating revenue from an external source (bridge fees paid by people coming from Hive to chase higher yields).

Enough revenue that at a 2.5c CUB price, the platform alone is able to buy ALL of the CUB being sold by those selling the rewards they're earning.

Posted Using LeoFinance ^Beta