To be a King, you need a Kingdom

The other day, I consolidated my CUB pools into the CUB-BUSD pairing to minimize the risk on BNB fluctuations against CUB, as well as take advantage of the higher APR. Let's see how it pans out - but if the coming development on Cub Finance is successful and the price rallies, I will be pretty happy. If it keeps declining, it is what it is. I have quite a lot of CUB there, so my fingers are crossed.

I changed a couple of other things around too, as I went into ApeSwap early on and was able to get Banana at a decent price as well as benefit from some decent yield, but the declining price of Banana caused me to pull out of the BUSD pool there this morning, and even though it has rallied, I am content with the gains I have made over the last few weeks in the token value (about 300%) plus the yield on top over that time.

I went pretty hard into panther early on also, but there I went with a strategy on single-pools, as I wanted to limit my exposure and at some point, I was getting 500+% on WBNB and BTCB pools and they still sit around 250% each. This means that the 4% deposit fee was getting paid off in about 3.5 days with minimal risk. When they were upgrading their pools, I took advantage of the no transfer fees on the PANTHER-BUSD pool which was over 2500% and is now around 1500%. Even though price of the token has declined since then, it is delivering 4% a day and it has helped me speed my "pay back" of the deposit into the WBNB and BTCB pools, and about 2 days from now I will be all square again, at which point I might room the liquidity from the pairing. This leaves me with a steady incoming stream from the single-side pools that will be affected by the value of the tokens themselves. At any point, I can pull out of the pools too, so there is little risk now, other than a contract hack.

So now, I have large positions in CUB and Panther, with lower risk in Panther, but a lot of hope in Cub. As @revisesociology was saying a few minutes back to me, it seems that a lot of people are now looking away from the high-yield-insanity and looking to build a position that is a little more stable. What this means is that they are going to have to look for projects that offer more than a simple token yield and increasingly, they will look for utility.

One of the things that I am wishing for Cub Finance (other than the release of Kingdoms) is that while they attract investors into the AMM, they will also connect them as users of the LEO community, as there is a lot of value in building the greater community long-term. Building a community around a project means having a market for new products and services,, as well as a network that is able to reach out further and attract more users. A lot of people want fast results and massive gains, but long-term value is generated through building foundations, adding usecases and attracting users who are willing to consume and use.

Again, this takes time and in the short-term, every new venture is going to take investment energy away from other ventures. Currently, there are more DeFi projects than stars in our galaxy, each vying for attention in much the same way, yield. But, this get more volatile and risky and eventually, those who have made gains or are getting in will become more cautious. The projects who have built a greater range of products and services, will be more attractive for a couple reasons, as they will be able to provide lower yield with more stability.

But, just like the competition between projects, new product ranges will see competition for internal resources, in the same way that a company has a budget that gets split across departments. The difference from a company is it is the userbase that decides which department gets the budget, as we are the financiers. Short-term, the funds are far more limited and when the community has gone in heavily, it has a cap on how much it is willing to go in, meaning that as new products are introduced, the pool of economic availability gets split, diluting the strength. Many people complain about this, especially if they have nothing to put into the new products and have taken "losses" on the old. Some will of course use what they have in one and move it into the new, like a person keeping the brand, but changing the model of the car they drive.

While people complain, in order to capture the future market where investors are interested in a little more security that is brought through a wider userbase across multiple usecase, this early dilution of the community funds is necessary for product range expansion. As said, a company has limited resources to act and, we are it. A lot of people are looking short-term to things like marketing to attract more value, but as soon as the single usecase of yield diminishes, those users will jump ship. However, bringing them into a functional and complex ecosystem with multiple economies and possibilities for gain and value to be generated, now that is valuable.

While everyone is looking short for "mad gainz!", long-term sustainability is what is going to see those gains grow enormously over time with far less risk exposure. Being an early investor into what becomes sustainable and offers a lower but consistent yield on percentage value is highly attractive, but it requires holding.

"If you can't hold, you won't be rich" _CZ

Chasing yield continuously is fun, but it can get tiring very fast and stressful, always having to worry about hacks and rug-pulls. While many people also enjoy that, as they do make gains, they will want to park them somewhere safer, which is probably into tokens that are expected to survive and projects that offer more than token speculative. Leo/Cub and Hive are both projects that have the potential to fill part of this gap in the market place, and while they seem to lag now, they can slowly develop their product range to capture the interests of the market. As we can see from the dedication of some people to Hive, there is more to it than the current price of the token, with the future price attached to current activity.

Each of us is going to have a different profile of strategies in how we approach our economic well-being and we are each responsible for our positions and the consequences. Some are more open to risk, while others are actively seeking security, with many taking a hybrid path of a little risk on one side, a little security on the other, a slice of Hail Mary insanity at the extreme and very conservative at the other end. However, whatever path we choose, what we yield is going to be dependent on the decisions we make, as it should be.

If you aren't suited to the ups and downs, perhaps investing into crypto is not for you, but investing always comes with ups and downs. So, if you have a very strong aversion to investment risk, you can choose to be uninvested - but that itself is a risky position. The hardest parts of risk management, is managing ourselves and living with the consequences.

To be a King, you need a Kingdom.

Stake your ground. Build.

Taraz [ Gen1: Hive ]