RE: RE: Nearly 50% of all xPOLYCUB is Now Locked for 2 Years | vexPOLYCUB Metrics and Buybacks

1). This is true. An exponential rise in the POLYCUB price would = a significant increase in revenue needed for buybacks. That being said, the rise in POLYCUB price also leads to other positive downwind effects - namely, more bridge revenue, more capital staked on PolyCub (higher apy’s), etc. Additionally - and this would be a “fallback” in the scenario that POLYCUB did something on the order of 10-20x and held for a significant period of time (also doing it so quickly that bridge revenue doesn’t keep pace) - the PoL holds a signicant amount of POLYCUB which means it’s reserves would increase in value right alongside the vexPOLYCUB vault. The second fallback behind that could be a reduction in the 20% fixed APR and can be put to a DAO vote at any time. I doubt these 2 fallbacks will be necessary, but it is good to know that they are both in place and at the ready

2). Also not an issue at current prices - in the scenario you described of POLYCUB going up significantly, say 10-20x: this would also increase the yield APY on all vaults as they are paid in POLYCUB

Price going up will tend to fix things and just lead to more revenue. The importance of your qesurions is extremely high though which is why we’ve allowed PoL to compound exponentially and gain a large stake in POLYCUB itself.

In the scenario of price going down, obviously PoL + MTB can support heavily. I think this creates a significantly strong floor price for POLYCUB. The price going up and leading to scalability issues is the concern which is why the reserves need to be large and revenue on the MTB needs to be continuously increased and focused upon

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