PolyCUB Tokenomics Intro

Ah so that's what it feels like to make 50% on a Tweet. Suck it, Dogecoin!

It's been a while but at long last some of the CUB DEGENS are starting to get paid. Den Dominance has risen to 67%. You heard that right. 67% of these tokens are absolutely not for sale. The CUB/BUSD LP APR has skyrocketed to 175%. No one wants to risk taking impermanent losses in the safest pool hedged to the downside. This community is chanting a resounding:

MOON MOON SOON™

Like me, you might be thinking,

Wow 67% stuck in the blackhole of the CUB kingdom...
Is that bad? Doesn't that mean we have less liquidity?

The answer being: yes, but no.

AMM provides exponential liquidity, and even with 67% of all coins in the 'den', it is still possible to buy 1% of all CUB in circulation for less than a 3% slippage fee (lol wtf). If anyone tried to do that with Bitcoin it would spike x2 or more. The liquidity provided by AMM is legendary.

Essentially AMM liquidity provides infinite liquidity, because no matter how many impermanent losses LPs sustain, no matter how many LPs exit the pool to avoid these losses, all this accomplishes is jacking up the yields to insane levels. High yields force the community to then repool their tokens and risk IL once again. It's a superior self-correcting system that will eventually take over the entire legacy economy. Take note!

Why PolyCUB? Scam? Cashgrab?

If you're like me you've been asking what the point of PolyCUB is. What makes it different than CUB? Why wouldn't we just link the liquidity of PolyCUB to CUB? Why are they separate tokens? Many of these questions have been answered in the most recent blog post from @leofinance.

Something to keep in mind:

LEO as a holding company is something we've discussed many times in the past. It's the umbrella that owns everything. All value is captured back to LEO in the long-run.

Both CUB and PolyCUB are bound to LEO.

This is what I mean by "open source imperialism".
Some communities will control other communities.
While this might sound like a bad thing, crypto is opt-in. Therefore, if you don't like it; don't support it.

However, the synergy of crypto allows for the relationship to be symbiotic rather than parasitic. I maintain that crypto will be able to create the world's first Multi-Level-Marketing scheme (MLM Ponzi) that actually makes everyone rich rather than just the people at the top. More on this some other time.

PolyCUB Rundown:

• Farmers earn auto-compounding yield.
• On top of standard yield, farmers also earn POLYCUB tokens.
  They are locked for X blocks. Farming early incurs 50% penalty.
  * 50% penalty siphoned to xPolyCUB

xPolyCUB

• This is a secondary market in which the 50% penalty is diverted.
• In addition to this there is also a base pay allocated from emissions.

Treasury

• 10% tithe is siphoned from kingdoms.
• Tithe is used to buy and burn PolyCUB (deflationary mechanic)

Deflationary Emissions

VERY VERY DEFLATIONARY!

As we can see the emission rate of PolyCUB is AGGRESSIVELY deflationary. Do I agree with this decision? Absolutely not: I've made it very clear what my stance is on deflationary economics. They create volatility and unnecessary supply shocks, destabilizing the platform. They incentivize old-guard holders to horde their stacks and prevent the network from expanding. New users will always get a worse deal.

However... ... ... ...

This is also a very good way to differentiate CUB from PolyCUB. Also as someone who is coming in on the ground floor, these tokenomics are very nice indeed. Also 99.99% of people in crypto wrongfully believe that deflationary economics are the best way to do things, so perhaps leaning in to this misconception will pay off big time.

Also I missed this Easter Egg on my first readthrough:

One of the first post-launch features will dramatically increase PCV and simultaneously create the benefits of:

1. Less price volatility
2. Deep POLYCUB liquidity
3. POLYCUB token burning black hole

This will be a bonding event - much like those seen on OHM, KLIMA and projects similar to it - where users can bond LP tokens to the POLYCUB PCV Treasury, earn an incredible ROI from the bonding incentives and simultaneously benefit the platform's growth and sustainability.

Now, I would say that a deflationary token such as this combined with a "black hole of PolyCUB burning" is the exact opposite of stability. The emphasis is more on making the token price moon.

However, on the second read I realized what this seems to be implying: that we will be able to stake PolyCUB tokens within LP farms that are forever locked inside the treasury. Hot damn, that's a great idea. I hope CUB adds this as well, because I would love to permanently lock up some of my LP tokens for increased yield. Very cool game-theory mechanic.

Eventually the PolyCUB PCV yield will flippen the ongoing emissions rate for POLYCUB. This means that the treasury yield will eventually buy/burn more POLYCUB than is being created by emissions every day.

Again, I don't think this is a great idea.

Imagine what it's like to be Khal though. lol. You make CUB and it peaks at $13 and crashes all the way down to 40 cents. All your most diehard users get wrecked and the only people happy with the platform are the ones who farmed the LPs. Wen this, wen that, wen moon, so on and so forth.

It makes sense that PolyCUB would attempt to be deflationary given what happened to CUB, especially considering we need to vastly differentiate CUB from PolyCUB. What makes it different? Well, for starters, the emissions rates are exponentially deflationary. That alone is a big enough difference to justify the creation of a new token. Should be interesting to see where this all goes.

Even if I'm right, I'm wrong.

Sometimes perception matters more than reality. If crypto people think that deflation is the way to go, then it is (in the short to mid term at least). Khal couldn't have picked a better timing in this regard. We are potentially on the precipice of a mega-bubble, while about to launch a deflationary defi token.

Even if I'm right about deflation not being the way to go... lol, doesn't really matter. The possible pump and dump that gets created here could be a thing of legend, and all we have to do is enter on the ground floor on day one to capitalize on the full value of these mechanics.

At the end of the day Khal wants to reward the most diehard users we have, and this certainly seems like a great start. By all accounts it looks like PolyCUB will hit the ground running at full speed.

OPENING TOKENOMICS

Originally, POLYCUB was designed to be IDO'd on CubDeFi. The plan was to operate a large-scale IDO where 100% CUB would be deposited and 100% burned (no raise of any kind).

Canceled! Replaced!

A 60 day airdrop to CUB stakeholders.

POLYCUB will be airdropped to anyone staking CUB:

• CUB Kingdom Stake (100%) CUB-BUSD Pool Vault (CUB Side Only - 50% LP Position) CUB-BNB Pool Vault (CUB Side Only - 50% LP Position)

The rough figures are at least 0.15+ POLYCUB per 1 CUB staked with snapshots taken daily for the 60 day period. For example, if you have 1,000 CUB in the Kingdom you'll get ~150 POLYCUB airdropped daily over 60 days to your Polygon address (~2.5 POLYCUB per day).

LOL, wow... that's fuckin sexy... hm...

After reading this it became obvious to me why CUB was spiking so hard. The IDO had been canceled and this new airdrop hype created a fresh round of FOMO before the actual event happened.

After doing the math I realized that this airdrop is going to be worth an absolutely massive amount. By all accounts I might get airdropped like $10k, and that's assuming that the price won't get pumped on launch day. Considering how deflationary this token is, it would actually be foolish to assume that it wouldn't get pumped on day one. My airdrop might end up being more like $20k or $30k by the time everything is said and done.

Really just goes to show you that money really is just being created out of thin air and being gifted to everyone. Did I have to do any work to get this free money? Nah, Khal doin all the work and taking all the risk for me. What a baller.

Also a bit annoying when we realize that @leofinance only ranks #32 on the witness list at the moment and getting a proposal funded seems unlikely. Not that Khal needs the money. By all accounts I wonder if he could buy this place out with all the Rune he's been stacking. But still... it seems... shady that he doesn't get more support from the old guard. Just my hot take on the subject.

Starting Supply: 1,300,000 POLYCUB

1,000,000 POLYCUB Airdropped Over a 2 Month Period to CUB Stakeholders (Our BSC Platform) 200,000 POLYCUB For Developer Fund (Locked in a 6 Month Drip Smart Contract) 50,000 POLYCUB For Initial POLYCUB-USDC Liquidity Pool 50,000 POLYCUB For Initial POLYCUB-WETH Liquidity Pool Starting Price: $1 USD Starting Liquidity: $200,000 USD POLYCUB-USDC and POLYCUB-WETH pools will have a starting price of $1 USD per POLYCUB ($100,000 USD in value per pool) Max Supply: 26,000,000 POLYCUB

Gotta say these tokenomics look pretty awesome when you lay them all out like this. Most of the initial stake goes to CUB holders in the airdrop. Still unclear where the $100k comes from (USDC/WETH locked in the LPs). Perhaps Leofinance is going to front the money themselves and the pull out returns from the developer fund drip.

With a max supply of 26M, that's only a little bit higher of a cap than Bitcoin itself. Still, it's unclear to me how a yield farming defi platform is going to have long-term staying power using these kinds of deflationary systems. At the same time it's very obvious that Khal has done his homework and at this point I wouldn't dare bet against him.

Conclusion

This is a very exciting airdrop. CUB has already gained 50% just from FOMO and rather than being forced to destroy CUB to get PolyCUB we'll all get airdropped together. This is great news because now all CUB holders will have stake in the new platform rather than just the ones who participated in the IDO (which is now canceled).

I'm a little skeptical if PolyCUB can have long-term staying-power with deflationary economics like this, but in the short to medium term the launch of this platform couldn't have been more timely. PolyCUB tokens will be pegged to $1 on day one, but I would expect them to get pumped to the moon during the first week considering the deflationary tokenomics of this system. Get your coins quick and early imo.

Exciting times

Onward and upward.
Leofinance still killing it.

Posted Using LeoFinance ^Beta