PolyCUB Bonding Protocol Explained | UI, Bonding Mechanics and The Future of PolyCUB

6 mo
LeoFinance
5 Min Read
939 words

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Once we complete some final testing, we're going to deploy the PolyCUB Bonding Protocol. The bonding protocol allows users to trade LP assets with PolyCUB's Protocol Owned Liquidity.

There are some large mechanisms at play here and many people have asked how bonding will work on PolyCUB in our recent AMAs.

The images in this post are screenshots of the UI for PolyCUB's New Bonding Protocol.

Bonding: The Future of PolyCUB

Bonding is without a doubt a key component of the sustainable future we have envisioned for POLYCUB.

The PolyCUB ecosystem is set to grow over time. That is, xPOLYCUB is designed as a number forever go up token - where the value of xPOLYCUB in POLYCUB terms is designed to always increase. Stake 1 POLYCUB in the xPOLYCUB vault and you know that tomorrow you can pull out more POLYCUB and 10 years from now, even more.

The POLYCUB token itself in USD terms is designed to accrue value as well. It accrues value primarily from Protocol Owned Liquidity.

We've designed Protocol Owned Liquidity to grow from 3 mechanisms:

  1. Management Fees on Kingdoms
  2. Bonding
  3. Collateralized Loans on xPOLYCUB Stake

Through these 3 mechanisms the amount of Protocol Owned Liquidity will also be a number forever go up vault. The amount of assets sitting in PoL will continually rise over time from these mechanics which bring about:

  1. A Higher Risk-Free Value on POLYCUB
  2. Exponentially Compounding Value in the PoL
  3. Value Accrual Forever

In a series of posts, we'll dive deeper into these mechanics. Today's post is focused on PolyCUB's Bonding Protocol, how the UI works and how it works behind the scenese. Let's dive in!

Bonding UI

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When you land on https://polycub.com/bonding (not live yet), you will see the currently available bonds and their respective metrics.

Let's run through the data points you see here:

  1. Total Liquidity Bonded - this is the total amount of liquidity that has been deposited in bonds (user deposits into the bonding contract)
  2. Bonds - the list of available bonds. You can see 4 bonds currently available here
  3. Payout Asset - the payout asset for PolyCUB Bonds is, unsurprisingly, POLYCUB tokens
  4. ROI - this is the current Return on Investment of each bond. Bonds can be positive or negative ROI (as seen above)
  5. TBV - this is the Total Bonded Value for each bond (simply, the USD value of LP Deposits into that bond)
  6. Bond Button - the bond button opens up a pop-up dialogue where users can interact with the bonding contract

Interacting With a Bond

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Much of this data is the same from the homepage of the Bonding Protocol UI. This data shows a specific bond (in this window, you see the WBTC-WETH SLP Bond).

Note: in testing, a few users asked what SLP stands for. SLP simply stands for "sushi liquidity pool" token. It's the LP Token you get to represent you position in any liquidity pool on Sushiswap. Note how the first 3 bonds are labeled "SLP" and the 4th is labeled "LP" since the 4th is on Curve and not Sushiswap.

Some other data points you may notice are the following:

  • Vesting Term - this is the time it takes for the bond to 100% vest. Note that the bond vests continuously over time and you can partially claim the bond whenever you want, so after 24 hours, you'll be able to claim ~14.28% of the total POLYCUB you're owed from the bond
  • Max Available - this is the maximum POLYCUB that can be received via this particular bond at this particular moment. Note that this amount is continuously increasing and then decreasing when any user bonds (think of it like a dynamic pool of POLYCUB that is available to be purchased via the bond. This pool increases/decreases in a variable manner)

Bonding Example

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  • User A deposits $300 worth of WETH-BTC SLP tokens into Bond #3
  • $300 is added to PolyCUB's Protocol Owned Liquidity where it is utilized to autonomously stake, earn rewards and use those rewards to buyback POLYCUB and distribute back into the POLYCUB Rewards Pool
  • User A locks in whatever ROI is currently available (+6.3%)
  • User A is now owed $300 + 6.3% of their deposit, paid out in POLYCUB
  • Over 7 days, User A is distributed POLYCUB tokens at whatever market prices they locked in ($318.9 worth of POLYCUB @ the market price of POLYCUB when they initiated their bond: $0.678 in the above case)
  • User A can continuously claim their bond over the 7 days or wait the full 7 days and claim 100% in one click

Questions About Bonding?

Please drop a comment below, we'll be responding to your questions and may collect a few to discuss on the next Live LeoFinance Weekly AMA!

What's Next?

We're currently doing final testing on the bonding protocol and are hoping to have it released by the end of this week. Likely around the time of the next rewards "halvening" for POLYCUB, as that would be yet another bullish metric to coincide with for POLYCUB.

We built this protocol in parallel on both CUB and POLYCUB. We're releasing it on POLYCUB first - as it is more time sensitive with us being just weeks into the launch - once we deploy it on POLYCUB and have bonds rolling smoothly, we'll deploy it on CUB and begin building CUB-based Protocol Owned Liquidity as well.

The future of sustainable DeFi has arrived (🦁, 🦁)

Posted Using LeoFinance Beta


Once we complete some final testing, we're going to deploy the PolyCUB Bonding Protocol. The bonding protocol allows users to trade LP assets with PolyCUB's Protocol Owned Liquidity.

This is a very good one coming as an advantage to the project, can't wait to see how this bonding fixture will go and hope to see the level of improvement that this will add to the project

Posted using LeoFinance Mobile

5
1

🦁

Posted Using LeoFinance Beta

0
6 mo (edited)

I believe is definitely a way forward for users to really benefit the impact it has which is useful to achieve more progress.

Posted Using LeoFinance Beta

0

This is just another massive achievement coming to the project and honestly this will make it more easier to exchange and even trade too,can't wait to see how the bonding fixture will indeed improve the project

0

Polycub bonding will be the deal maker. No doubt this is a important component that is going to make polycub a substainable future. I have added another couple polycub to stake. Every bit counts !

Posted using LeoFinance Mobile

5

The Protocol Liquidity is much bigger than everyone realizes

Posted Using LeoFinance Beta

0

The PolyCUB ecosystem is set to grow over time. That is, xPOLYCUB is designed as a number forever go up token - where the value of xPOLYCUB in POLYCUB terms is designed to always increase.

It is amazing bring more features to PolyCUB, and for PolyCUB to be a forever go up token it will bring in or entice more investors into the platform.

I look forward to when bonding is live.

4
1

Bonding will blow minds!

Posted Using LeoFinance Beta

0

Yes it will indeed

0

This is awesome guys. Never thought we would get to see bonding so early. Really excited to try this one out.

One question - Do you think it will be possible for you guys to launch single asset (like wETH or wbTC) Bonds in addition to LP Bonds?

Posted Using LeoFinance Beta

1

I don't think it would then be called a bond? 🌚

0

Because you are bonding two tokens to form an LP? Well honestly, that's not the reason it is called a bond. 😋

The "Bond" we are talking about here is similar to the "bonds" you purchase or invest in traditional finance.

Posted Using LeoFinance Beta

0

Correct, it would still be called a bond since it's simply issued by the bonding protocol and allows a user deposit in exchange for a protocol asset.

I believe we will see something along these lines some day. For now, LP Assets are preferred as the Protocol Liquidity will be deploying these assets to generate yield.

Posted Using LeoFinance Beta

1

Definitely the bonding is just going to be another steps to make the project the very Best too and creating a level of competition with other projects in year to come

0

It's great to hear we're getting close to having it play out.

My question is; as though it is indicated 7 days, I suppose that means that after this vesting period, the ROI can change, as well as the pool rewards in polycub?

If that is the case, how is the number as per rewards in polycub of each bond calculated? Is it personally decided by the team? Or is it following some set up rules?

2

The amount of POLYCUB will stay the same however the value of those POLYCUBs can change.

When you lock in the ROI at the beginning of the bond, you lock in the ROI at the current value of WBTC-WETH and POLYCUB (for example).

So in this example, you get ~6% more POLYCUB at market value than you would have if you bought it directly on the market.

If WETH-WBTC drops in value against POLYCUB, then you made an even better ROI than 6%.

If POLYCUB drops in value against WETH-WBTC, then your ROI is potentially lower than 6%.

Though the bond vests continually over 7 days as well.

Bonds have a lot of variables. Kind of like converting HBD to HIVE over 3.5 days. It can be a risk depending on market volatility but it can also carry super high payoffs.

Posted Using LeoFinance Beta

1

PolyCUB is truly the future of sustainable DeFi, and I can not wait for the Bonding Protocol to be deployed and also the Collateralized Loans on xPOLYCUB Stake, which mean I don't have to sell my polycub but can be able to take a loan from the Protocol Liquidity in exchange.

Posted Using LeoFinance Beta

2

Those two things could really end up taking the sustainability to another level.

We are seeing some great things with Polycub.

Posted Using LeoFinance Beta

2

Yes they are and Polycub is going to a really great project.

0

100%

Posted Using LeoFinance Beta

0

This is just another reason why holding and staking PolyCub is the best thing to do right now

2

I am adding to my xPOLYCUB holding. To me, it is worth going all in.

Could end up being life changing money if one builds enough stake.

Posted Using LeoFinance Beta

0

This another great achievement in the project by setting out liquidity and bonding, which I believed will be useful and helpful in the future and when implemented is going to make trading polyCUB asset easily in the future... kudos to the team

3

The entire ecosystem can feed into itself. This creates a circular economy where there is positive feedback onto other aspects of the ecosystem.

Posted Using LeoFinance Beta

0

One win, we all win. Building a cohesive Web3 ecosystem is the key

Posted Using LeoFinance Beta

0

This is another achievement in the project by bonding polycub, which I believe is a long term investment

0

Awesome! Leggooo

Posted Using LeoFinance Beta

0

This would change things greatly around polycub. Can't wait to for bonding to go live

Posted Using LeoFinance Beta

1

Thanks for running through the data points, it's Important to try out different key component, that would be necessary for the sustainability of PolyCub, let's see how bonding does this. Still holding and believing.

0

The Bonding will lead to a great deal of value to the protocol. This is think that will help it to step forward.

Posted Using LeoFinance Beta

0

Beautiful mechanism behind bonding and cool UI page. Nice we'll be seeing this sooner than anticipated. Looking to try it out

Posted Using LeoFinance Beta

0

Bonding came earlier than expected, gaining sustainability sooner than I expected, barely up to 4 weeks and with these features, long term is certainly the goal.

0

We are not even to the 3rd reduction in emissions. Now we are going to see a 33% drop in POLYCUB in a couple days.

Posted Using LeoFinance Beta

1

Thanks so much LeoFinance for this update and clear some points we may need to know like SLP and others. I liked the UI section of it. Wish to see more bigger and better something upcoming from you! I appreciate your efforts 💗💕❤️

0

So awesome. The leofinance team is the best. Always working and delivering. Thanks for explanations on bonding. Hoping to see it live this week

Posted Using LeoFinance Beta

0

More ways to earn, yippy! Nice that cub holders are getting to interact with these other protocols, all from the Leo front end. It is a great learning experience.

0

Great work, can't wait for bonding to be live to start bond looping, creating more value for the POL. I just hope Polycub holds its value over the 7 days so I can keep this going for a while.
I was expecting a five days bonding period but seven isn't that big of an extension.

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1

I don't think the price drop is too bad. APY for xPOLYCUB will likely be better than bond looping discouraging heavy dumping of POLYCUB, and you still get more in POLYCUB tokens by compounding bond payouts. Not financial advice though.

0

I think xPOLYCUB APR will no longer high after week 5 because xPOLYCUB APR strongly related to POLYCUB emission rate.
Then after W5, Bonding may be a better option than xPOLYCUB

Posted Using LeoFinance Beta

0

If true I wonder how the price will hold in short term. The yield from the liquidity can't immediately buy back the amount of tokens it's paid with but if those tokens come from buybacks then the system seems stable. I guess the dumps from bonding will have lessening short term effect on the price when the inflation goes towards zero and the yields should return the value in long term.

0
6 mo (edited)

Wasn't really expecting bond to be this quick.well this actually tells how focus and determine leofinance is to get things quicky done.its no doubt that the bonding will make a very huge impact cos polycub is already a success

0

Bonding will be a good thing. It will help polycub to be sustainable