Introducing CUB Staking Kingdom | Autonomous BNB Rewards and Autocompounding
It's time to unveil the bread and butter of this Kingdoms migration. The CUB Staking Kingdom is now live!
Many have stuck with Cub Finance as we have grinded through some tough developments in order to migrate our entire platform tokenomics and farming structure. In the Last Team Update, we discussed the migration of CUB from "Goose-style" to "Autofarm-style"
The key differences were laid out in detail throughout that post. We'll reiterate the key points here:
- Ongoing management fees
- Cross-platform composability
- Low inflation toward non-native farms
- High inflation toward native token farms (i.e. CUB, CUB-BNB, CUB-BUSD)
The CUB Staking Kingdom changes the entire incentive and utility for hodling CUB.
What is the CUB Staking Kingdom?
Launching today, the CUB Kingdom allows you to stake CUB by itself in an autocompounding yield vault. There are 4 main characteristics of this Kingdom:
- Single asset CUB
- Shares multiplier with CUB Den
- Autocompounds CUB harvests back into CUB staked
- Earns BNB Dividends from management fees on other Kingdoms
Single Asset CUB
Having a single asset CUB Kingdom is extremely bullish for CUB. Through the other characteristics of this vault, there is an incredibly deep level of utility being added to this vault. As the Kingdoms migration continues, old Farms/Dens will be deprecated.
You may have noticed that the current multipliers on non-CUB Kingdoms is 1.5x. Most Farms/Dens currently have anywhere from 2x - 6x.
The remaining migrations will free up about 12x-15x in multipliers. These multipliers will get reallocated to the CUB Den and double the APR for staking CUB (which in turn is allocated to the CUB Staking Kingdom - see next section).
Shares Multiplier With CUB Den
Many have expressed confusion about the CUB Den vs. CUB Kingdom and if there will be additional multipliers added to bring rewards to the CUB Kingdom.
The CUB Kingdom works similarly to all of the other Kingdoms: you deposit CUB and pool it in an "external" farm and earn from the rewards pool of that target farm.
Think about the CAKE Kingdom: you pool CAKE on Cub Finance and then earn CAKE from the PancakeSwap rewards pool for their CAKE "den".
The same mechanism governs the CUB Kingdom contract. When CUB is staked in the Kingdom contract, it is autonomously pooled in the normal CUB Den and earns from the 15x multiplier designated to that Den.
This means that no additional multiplier is needed for the CUB Kingdom. It earns the same multiplier from the CUB Den. The key differences between the CUB Den and CUB Kingdom are being outlined here in this post (Autocompounding and BNB Rewards from Management fees on Kingdoms).
At the end of the day, it will make little sense to utilize the CUB Den over the CUB Kingdom. The contract will compound your CUB at a more optimal rate than you can do it which = a higher APY. The Kingdom BNB Dividends will only be allocated to the CUB Kingdom (not the den itself) so that also will add signifcantly to the APY of staking CUB in the Kingdom.
Autocompounds CUB Harvests Back Into CUB Staked
Kingdoms contracts are cross-composable, autocompounding contracts. This means that they autonomously take the earnings of the "external" (in CUB's case, internal) platform's rewards and autocompound it back into your base asset position.
When you stake BNB-BUSD in the PCSv2 Kingdom, then you're earning CAKE rewards from PancakeSwap. The Kingdom contract takes the CAKE you earn and sells it for BNB-BUSD LP tokens and then re-stakes those LP tokens into your base position + pays you a small portion of the CUB Rewards Pool to further deepen the APY for staking in Kingdoms.
Earns BNB Dividends from Management Fees on Other Kingdoms
Kingdoms like BNB-BUSD, CAKE, DOT-BNB, ETH-BNB and the other vaults we develop earn "off-platform rewards".
The 4 vaults above are all PCSv2-based. This means that they earn CAKE from Pancakeswap and then autocompound that CAKE back into the base asset position.
During the autocompounding process, a management fee is taken from the total CAKE harvested (and the other tokens we harvest with future Kingdom vaults).
We're introducing a new structure for management fees where a % of them get distributed to CUB Kingdom Stakeholders and another % autonomously buys and burns CUB.
We've been testing the ladder part of these fees with the current Kingdoms setup and things are going smoothly. It's time to implement the new fee structure we've created and start paying BNB dividends from these harvests as well.
In one of our upcoming blog posts, we'll discuss this fee update in more detail. For a high level overview, it will look like this:
- 7% management fee on off-platform rewards (i.e. CAKE harvests) will autonomously buy CUB on the market and burn it
- 3% fee for CUB Staking Kingdom (from the same "CAKE" harvests) will autonomously convert from CAKE (or any other Kingdom harvesting asset) into BNB and distribute 2x daily to the CUB Kingdom
CUB's Bright Future as a Cross-Composable Yield Platform
Many have started to realize the value of migrating CUB to this new structure that we've been developing for quite some time now. CUB's price bottomed out at $0.50 and has started a dramatic climb already on the news that the CUB Staking Kingdom was going to be released in the near future.
Increased Buying Pressure and Decreased Selling Pressure
Increasing the buying pressure for CUB is done primarily through:
- Added Utility (i.e. Staking CUB For BNB Dividends + Higher APR With a 30x Multiplier to the CUB Den/Kingdom)
- Marketing, awareness and onboarding new users and capital into the Kingdoms Vaults (ongoing management fees + new CUB buyers)
We've already seen the result of some of this increased buying pressure. Just a few days ago, CUB was bought up from $0.50 to $0.72 in less than a few hours.
We're already seeing the results of decreased selling pressure as well. There are two ways Kingdoms solves for decreasing selling pressure:
- CUB Staking Kingdom is more attractive than selling CUB for another crypto asset (increased APR to 200% + BNB Staking Incentives)
- Decreased CUB Rewards on all non-CUB Farms / Dens (migration to Kingdom means that all multipliers are reduced from 2-6x down to <1.5x)
Even though the CUB rewards on vaults are decreased in Kingdoms, you'll notice the APR/APY of Kingdoms is actually higher than the original farms/dens. We're able to achieve this via cross-platform composable contracts. Our contracts farm on another platform (i.e. Pancakeswap) and bring value back into the CUB Ecosystem via CAKE rewards on those assets.
Those CAKE rewards (and other tokens soon) drive up management fees and thus, CUB Burns and CUB Staking Rewards. Additionally, users who provide liquidity in Kingdoms are earning two farming rewards simultaneously (CAKE + CUB).
There are a number of other amazing developments lined up for CUB and LEO. The key focus right now has been to migrate CUB into a more sustainable tokenomic model and it's already yielding amazing results. Since the we migrated DOT and ETH-BNB, we've seen a major decrease in the amount of CUB sold on the open market.
As the final vaults are migrated and the CUB Staking Kingdom gets a drastic APR boost, we think CUB is going to see an entirely new trend. It's going to be a fascinating thing to watch, especially as our other projects gain traction simultaneously (LeoBridge's volume is increasing dramatically and our Polygon platform tied to the CUB hodlers is about to launch).
The private investor conference with over 100k attendees mentioned on LeoFinance's Twitter account is currently underway and some new blood is being onboarded into the DeFi space via Cub Finance, LeoFinance.io and LeoBridge. More details on how this is going.. soon™️.
This new model brings a depth of utility to staking CUB in the Kingdom that didn't exist before. As the Kingdoms migration continues, the freed up multipliers will make their way to the CUB Den (Kingdom). When the migration is complete, the APR for staking CUB will 2x and the APY will be even higher due to the optimal compounding rate + BNB Management Rewards.
Upcoming Developments for LeoFinance's DeFi Branch
- Update to fee structure (BNB Distributions to CUB Kingdom)
- LeoFi Leasing App for the Native LEO Token
- Completion of the CUB Kingdoms Migration (BTCB, BTCB-BNB, ETH, etc.)
- Doubling the Vault Multipliers to CUB Den (Kingdom)
- Major Marketing Event for Kingdoms Full Launch + Polygon Extension
- New Polygon Platform
- Airdrop to CUB Stakeholders from New Polygon Platform Token
- pLEO Token on Polygon
- BSC -> Polygon Extension Added to LeoBridge
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