What do you think about converting LBI into CUBlife?
Hello, LBIers. Today we look into converting LBI into CUBlife tokens. I have looking to create an LEO pure income token but the yields are not there and it's not possible to create something to pay out higher than a 9% APY so that's not really worth it. We already have CUBlife set up and it's already doing pretty well so why not grow it out?
This is something that I mentioned a few times before briefly as an idea and i think now what be a good time to try this out because we've just postponed weekly dividends and it offers a solution for those more interested in a dividend/income over fund growth.
Cublifes dividend is about 3x bigger than LBI's and the token price has actually outperformed LBI as well in terms of LEO value. LBI long-term will be a much stronger project but for now, CUBlife is the LEO dividend daddy. I think there are other CUBfinance-related projects out there but they mostly reinvested CUB harvests in the kingdom and got wrecked.
- Offer an LBI to CL token conversion 1 time every 13 weeks for 1 week
- I post the conversion rate on day 1 of the week (currently 1.91 LBI for 1 CL)
- Investors can send their LBI back to @lbi-token anytime during that week and receive CL by the end of the week on day 7 based on the conversion rate shown on day 1.
That's for the end user Nice and simple
My task will be moving funds from LBI over TO CUBlife. If people convert $500 of LBI tokens, I would need to move $500 out of LBI into CUBlife. The plan/hope is that there is enough in defi holdings to cover this each quarter without having to touch our LEO balances. Looking at some ballpark numbers, I works out 10k LBIs is even doable. Could a good idea to maybe set a limit of 500 or 1000 to be safe? I don't wanna drain away all our defi holdings I've been working hard to build.
Either way, every token I release or operate has to be backed with something so this is really just a simple transfer of funds from 1 account to another.
Will this affect the price of LBI?
Nope, not at all because we are going to burn the LBI we get back. When we move 100 LBIs worth of BUSD from LBI to CUBlife and then burn 100 LBIs, the transfer is cancelled but the burn and the LBI price remain the same. The fund would be worth a little less and there would be 100 fewer tokens in circulation but the LBI price will be the same.
It will increase growth and dividends when they start again. Remember that LBI collects 10% of CUBlife's total harvests each week as my operator's fee that I donate so the bigger the CUBlife wallet, the more it harvests and the more LBI gets. That's the growth. The increased dividends will come from increase income and fewer LBIs.
This project was launched about 18 months back and its been doing very well. Inbetween these quarterly conventions I will be promoting this a little harder because now the price of crypto is cheap and it's the best time for CUBlife to raise new funding. It's cheapest for investors to get in per token and it's the best time to have fresh capital to invest.
I believe if we use CUBfinance safest LPs to invest into, we have a good chance to at least 5x holding from bear to bull. Never mind the APYs so much, earning an extra 15% in harvests means nothing when the crypto within your LP does not increase. We would rather end up earning 15% on something that goes 5x compared to earning 30% on something that is only 2x. Harvests are important but the crypto in your LP is more important. Shitcoins are a dime a million dozen these days.
There are 1 million CL tokens that can be created and with only 30k issued, we're not running out any time soon. I would like to be going into the next bull with 100k CL issued and earning a decent APY for both CUBlife token holders and LBI as well.
We've all seen how crazy the returns can be between bear and bull markets. CUBlife is going to be a wolf in sheep's clothing, mark those words. In 3 years from now, CUBlife will be harvesting $400-500 per week or more if i have my way.
What do you think?
- Is this something you would consider?
- Do you think it's a good/bad idea?
- Is every 13 weeks too much are too little?
Thanks for taking the time to read through this. If we go ahead which i think we will, I'll write up a proper post with proper rules and timeframes. This post is sorta just throwing the idea out. Would be nice to get the first 1 done before XMAS and then start every 13 weeks on set weeks with the LBI year.
Thanks again for checking the post, have a great day.
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