xPOLYCUB Governance | Our First Vote on Yield Dynamics

4 mo (edited)
LeoFinance
7 Min Read
1493 words

xpoly yield vote.png

PolyCUB is becoming a highly efficient yield platform. With much feedback and dozens of iterations, we've radically changed the platform and I think we can all agree: for the better.

Before, PolyCUB focused on Kingdoms: a way to LP assets on other platforms and drive in yield. The problem with Kingdoms is that they only offer one single source of value accrual: a 10% management fee on the yield generated by Kingdoms TVL.

This model clearly had some sustainability issues. We went back to the drawing board several times and finally landed on a solution. We needed to create vaults that had several methods of deep value accrual for POLYCUB.

This is when we decided to launch pHBD and test our theory. pHBD has 4 methods of value accrual:

  • HBD - held as 1:1 collateral for the wrapped equivalent - staked on native platform (HBD on-chain savings) = value accrual for PolyCUB's PoL
  • HBD - 0.25% wrap and unwrap fee = value accrual for PolyCUB's PoL
  • HBD cross-chain arbitrage = value accrual for PolyCUB's PoL
  • pHBD-USDC holders need to buy more POLYCUB to stake as xPOLYCUB to control governance and drive the pHBD-USDC vault yield higher

The launch of pHBD was so successful in terms of value accrual - bringing in more revenue for PolyCUB's Protocol Liquidity than all of the Kingdoms combined in the first week - that it proved our theory and created a 180 degree shift in the future of PolyCUB as a Yield Platform.

Instead of focusing on Kingdoms, we are now completely focused on the Multi-Token Bridge Theory. Launching multiple Wrapped Derivatives on PolyCUB that are all paired to POLYCUB and generate multiple forms of value accrual.

Governance and Yield Dynamics

Governance is at the core of PolyCUB. We need governance to determine which vaults should gain the highest yield.

Governance can also be complex. As it stands, we have two forms of potential governance voting: static and dynamic.

We believe that the dynamic structure is the best, but it is hard to tell without real world data on how it performs.

The first Governance Vote will test our dynamic DAO voting system and see how it performs. From there, we'll continue to seek feedback from the community to tweak and improve the DAO Voting System.

Feedback

LeoFinance is built on candid community feedback. We need to hear your voice and see things in action to tweak them.

"Doing it live" is a fun meme in this community but it is somewhat true in how we do things. We implement, test and iterate based on your feedback.

The xPOLYCUB DAO is no different. We have models for how things should work but we need candid community feedback to tweak and improve them.

For this first round of governance voting, we ask that you:

  1. Participate in xPOLYCUB Governance
  2. Write a post about your experience
  3. Include candid feedback on the governance system: what sucks. What doesn't suck. What do you want us to add/remove/tweak?

Every Crypto project in the world is trying to solve the DAO structure. We're now a part of this race as well: trying to come up with the best ways to decentralize power and give stakeholders a voice in the direction of the platform.

The First Governance Vote

Now, let's dive into the details of this first governance vote around yield dynamics. Again, please give feedback on this structure, what you think can be improved, etc.

2 Maximum Votes per xPOLYCUB Stakeholder

As an xPOLYCUB Holder, you can vote on any of the vaults listed on the /farms page (6 in total, currently).

You can cast 2 votes maximum. Subsequent votes will change your first two votes.

Example: if your first two votes are for pHBD-USDC and pHIVE-POLYCUB, then you cast a third vote for POLYCUB-WETH, your pHBD-USDC vote will no longer count and your updated votes will be POLYCUB-WETH and pHIVE-POLYCUB. If you want to keep voting for pHBD-USDC, then you will need to re-cast that vote to replace the pHIVE-POLYCUB vote.
  • Vote 1
  • Vote 2
  • Vote 3 replaces Vote 1
  • Vote 4 replaces Vote 2

Relative Vote Weighting

Yield dynamics will be determined based on relative vote strength.

This is a model that we borrowed from the Curve DAO and a few other DAO models that we like.

Each pool has a vote weight attached to it. This is determined by the amount of xPOLYCUB backing that pool relative to the total xPOLYCUB backing all pools.

xPOLYCUB Backing Pool A / xPOLYCUB Backing All 6 Pools = Relative Vote Weight %

We then take the Relative Vote Weight % and multiply it by the total Yield Available for the 6 farms to determine how much each Farm Vault should receive.

A minimum threshold and maximum threshold are in place (at least, in the beginning) as we continue to test and improve this Dynamic Governance Model:

  • Minimum: 0.35x Multiplier
  • Maximum: 3x Multiplier

Here's a rough example of what a dynamic vote might look like:

image.png

How to Vote - 2 Simple Steps

Again, we need to collect data on this dynamic model and see how it works in the real-world. The first vote will begin today and last for 7 days (Next Wednesday, May 27th).

If you own xPOLYCUB, now is the time to cast your vote.

If you LP Assets in any of the 6 pools, now is the time to have your voice and get more yield added to your favorite vault to drive up your own returns. If you see that a lot of xPOLYCUB is not backing your vault, you may want to buy more POLYCUB and stake it as xPOLYCUB to have more control over the yield dynamics.

Depending on how this voting structure goes and the tweaks we make to it, we will release the updated Governance UI to make voting as simple as clicking a button. For now, it's a two step process to vote via Metamask (or your preferred Polygon wallet).

Step 1). Decide Which Pools to Vote For

There are 6 pools you can vote on and you have 2 available votes. You vote based on PID of the vault:

  • POLYCUB-USDC PID: 4
  • POLYCUB-WETH PID: 5
  • pLEO-MATIC PID: 6
  • pHBD-USDC PID: 8
  • pHIVE-POLYCUB PID: 10
  • pSPS-POLYCUB PID: 11

To vote, send the corresponding amount of MATIC to the governance address:

  • POLYCUB-USDC PID: 0.0004
  • POLYCUB-WETH PID: 0.0005
  • pLEO-MATIC PID: 0.0006
  • pHBD-USDC PID: 0.0008
  • pHIVE-POLYCUB PID: 0.0001
  • pSPS-POLYCUB PID: 0.00011

Governance Address: 0x2CAA7b86767969048029c27C1A62612c980eB4b8

Step 2). Open Metamask (or whatever wallet you use for Polygon) and Cast Your Vote with a Simple Send TX

image.png

example TX to indicate voting for pHBD-USDC (PID 8)

The voting system is designed to have minimal complexity. All you have to do is send a simple TX to the governance address to indicate which vaults you'd like to vote for.

A few things to keep in mind:

  • Make sure you cast your vote from your address holding xPOLYCUB tokens
  • Each address can only vote twice. Votes beyond the first two will replace the first two
  • Voting is stake-weighted based on how much xPOLYCUB you hold - the more xPOLYCUB in your wallet, the more valuable your vote will be in determining how much yield a vault receives
  • The vote will close exactly 5 days from when this post goes live (May 25th at Noon EST).

Future Votes

The rounds will rotate on a weekly basis - just like Curve. It's a set it and forget it process, so if you vote for pHBD and pHIVE vaults and want to leave your vote cast for those two vaults each week, then just set your vote this week for those vaults and they will be auto-cast in each subsequent week - unless you change your vote.

If you change your vote, it will be updated in the next round.

About LeoFinance

LeoFinance is a blockchain-based Web3 community that builds innovative applications on the Hive, BSC, ETH and Polygon blockchains. Our flagship application: LeoFinance.io allows users and creators to engage and share content on the blockchain while earning cryptocurrency rewards.

Our mission is to put Web3 in the palm of your hands.

Twitter: https://twitter.com/FinanceLeo
Discord: https://discord.gg/E4jePHe
Whitepaper: https://whitepaper.leofinance.io

Our Hive Applications

Join Web3: https://leofinance.io/
LeoMobile (IOS): https://testflight.apple.com/join/cskYPK1a
LeoMobile (Android): https://play.google.com/store/apps/details?id=io.leofi.mobile
Delegate HIVE POWER: Earn 16% APR, Paid Daily. Currently @ 2.8M HP
Hivestats: https://hivestats.io
LeoDex: https://leodex.io
LeoFi: https://leofi.io
Polygon HBD (pHBD): https://wleo.io/hbd

Web3 & DeFi

Web3 is about more than social media. It encompasses a personal revolution in financial awareness and data ownership. We've merged the two with our Social Apps and our DeFi Apps:

CubFinance (BSC): https://cubdefi.com
PolyCUB (Polygon): https://polycub.com
LEO Wrapping Bridge: https://wleo.io

Posted Using LeoFinance Beta


As an xPOLYCUB Holder, you can vote on any of the vaults listed on the /farms page (6 in total, currently).

You can cast 2 votes maximum. Subsequent votes will change your first two votes.

Nice one here and another opportunity to cast all vote now and this will also gives Chance to those who are yet to do that to also do too

Posted Using LeoFinance Beta

0

Looks really seamless. The future I see with POLYCUB is just amazing.

Posted Using LeoFinance Beta

0

Every Crypto project in the world is trying to solve the DAO structure. We're now a part of this race as well: trying to come up with the best ways to decentralize power and give stakeholders a voice in the direction of the platform.

This is the best example for a community to decide on the future of the projects in that they are stakeholders. It is quite challenging for me to decide on the LPs that I want to prioritize 😅 To decide on them, I'm going to consider my LP shares and their benefit to Hive & Leo ecosystems ✌🏼

Posted Using LeoFinance Beta

3

This is the best example for a community to decide on the future of the projects in that they are stakeholders.

Quite a very beautiful side of LeoFinance. The readiness to take feedback and treat them sincerely shows true decentralization and the power of community.

Posted Using LeoFinance Beta

0

Didn't really get to know about the token,but have been following every update and trying to convert some cub too,but of all good to see how well everything that Needs to do with the token is improving often

Posted Using LeoFinance Beta

0

Wow this is a wonderful development. I'm impressed. I'll cast my votes soon. Well-done ✌ 😎

1

Scenario:
I own 100 xPOLYCUB this week and make 2 votes.
Next week I buy 100 more xPOLYCUB for a total of 200 xPOLYCUB.

Does my vote next week automatically count the increased xPOLYCUB or do I have to vote again?

Posted Using LeoFinance Beta

6
1

Great question Neal: you don’t need to vote again but xPOLYCUB does need to be staked for a particular amount of blocks before it is reflected in the snapshot.

This prevents anyone from buying and staking, voting for the snapshot and then immediately unstaking.

In the long-run, there will be a more “curve-like” contract with actual long-term staking lockups to have more voting power

Posted Using LeoFinance Beta

1

xPOLYCUB does need to be staked for a particular amount of blocks before it is reflected in the snapshot.

This cool down feature is quite cool for the safety of the DeFI and prevents a hostile takeover.

In the long-run, there will be a more “curve-like” contract with actual long-term staking lockups to have more voting power

Another great feature for sustainability encouragign long-term xPOLYCUB staking.

Posted Using LeoFinance Beta

0

Oh, my same question.

Posted Using LeoFinance Beta

0

I like the fact that the changes and tweaks are being defined by the community, and the governance vote plus the opportunity to give a voice by owning stake is very good..

Posted using LeoFinance Mobile

1

Constant updates and improvements. Positive evolution - that's what we're all about

Posted Using LeoFinance Beta

0

This eventually pays off, improvement and flexibility especially with how the progect is handled.

Posted Using LeoFinance Beta

0

Thanks for that!!!

Posted Using LeoFinance Beta

0

Just voted.

Posted Using LeoFinance Beta

3

Awesome. Personally stacking more xPOLYCUB for the vote.

Posted Using LeoFinance Beta

0

Is the UI almost ready? I feel like there will be a lot more voting once it's live.

Posted Using LeoFinance Beta

2

Yes there would be in my opinion too

Posted Using LeoFinance Beta

0

Hoping for... soon

We need to iron out some more things before we're ready to push it live

Posted Using LeoFinance Beta

0

image.png

Love it when a plan comes together.

V2 vaults + xPOLYCUB DAO Governance changes everything

Posted Using LeoFinance Beta

2

You knew this would pump the price, didn't you? 😎

♾️CUB 🦸 Moon!

Posted Using LeoFinance Beta

0

Cool to see that price trigger. It only gets better.

Posted Using LeoFinance Beta

0

I can vote twice from my xpolycub address. There are 6 pools to choose from. It's easy to do as I did it last time. I shall do it later when I use my laptop !

Posted using LeoFinance Mobile

4
1

Having a governance voting system in place is making it fully decentralized, way to go and we will see the price of polycub follows.

2
1

That's great. You people are the best.

Posted Using LeoFinance Beta

0

Thank you!

Posted Using LeoFinance Beta

0

You are welcome

Posted Using LeoFinance Beta

0

I hope there will be good participation in this. I will cast my vote when I have a moment to think about my options. I really like that the voting will be a roller over. It will be very interesting to see how it changes with time.

Posted Using LeoFinance Beta

0

I bet everything on xPOLYCUB. I'm not providing any liquidity. What I do have is a vested interest in HIVE, SPS and LEO. I voted based on that.


Suggestion/Feedback

@dcitygame had these governance votes tried out over an year ago. It seems to be working well for them. Having an easy UI/UX helps to keep the worries of double checking away. Other than that, I had a smooth experience just like the previous vote.


!PIZZA

Posted Using LeoFinance Beta

2

A UI in fact would be a great thing. I really like the manual vote process as well but for the average user there should be an easier way.
!BEER

Posted Using LeoFinance Beta

2

I agree, we definitely need the UI Deployed ASAP

Posted Using LeoFinance Beta

1

Hey @vimukthi, here is a little bit of BEER from @solymi for you. Enjoy it!

Do you want to win SOME BEER together with your friends and draw the BEERKING.

0

Glad to hear it and your votes on the V2 vaults will ultimately drive more yield into xPOLYCUB holders (since V2 vaults generate revenue from wrapping fees, arbitrage, etc. and then buy POLYCUB and distribute to the daily LP Rewards pool - which includes xPOLYCUB).

We're working on the UI, especially with this variable governance in place. May take some time but hoping to have it done soon once we confirm a few things on the backend

Posted Using LeoFinance Beta

1

So what's happening with Cub on BSC...?

Posted Using LeoFinance Beta

6

All of the same things you see here. Battle tested on PolyCUB and migrated to CUB in one big update - as has been discussed in all the AMAs for the past 8 weeks

Posted Using LeoFinance Beta

1

Even the deflationary tokenomics? I mean are you going to cap the Cub print rate so it's tending towards 0 too?

Posted Using LeoFinance Beta

1