POLYCUB - The "BTC" of the LeoFinance Community | Emissions Rate Week 2 Has Begun
POLYCUB has been one of the most fascinating projects to research, design and build over the past 7 months. We know that a lot of people are interested to see how this all plays out in the long-run. We belive that we've built something truly unique with POLYCUB that is going to forever change the way this community views yield optimizers on various blockchains.
PolyCUB is a DeFi 2.0 Yield Optimizer. The platform is built to have extremely easy "mining difficulty" in the first 4 weeks. That difficulty rises each week as the emissions rate is dropped.
As of 10 AM CST this morning, POLYCUB's emission rate has moved from week 1 to week 2 figures. The emissions are now down 20% - from 5 POLYCUB per block to 4 POLYCUB per block
But Ser, Price Fall!?
Yesterday, I recorded a 45 minute podcast episode with @taskmaster4450. We talked about POLYCUB and our vision for the future of the PolyCUB application.
In it, we talk about this idea: that POLYCUB is an extremely limited supply token. The first 4 weeks of emissions are designed to be super high because its intended to distribute the POLYCUB token as far and wide as possible, giving users the opportunity to mine it with ease.
Today, we see the first drop in emissions from 5 POLYCUB per block to 4 POLYCUB per block.
What this signifies is the first step toward bringing the emissions level down to a sustainable level.
This is the very beginning. What we've all seen is the first week of POLYCUB: an easy week of earning MASSIVE POLYCUB rewards via Liquidity Mining.
Now that week 1 is over, there is 20% less POLYCUB entering the supply every single day.
7 days from now, we'll be in Week 3 Emissions - only 3 POLYCUB per block will be mined. That's a 40% decline from Week 1 emissions (the past week).
After that, 2 tokens per block and then 1 token per block to close out Week 4 of POLYCUB's launch.
Then we're in the hyper-accelerated version of the Bitcoin halvening cycle that we created: the amount of POLYCUB per block will drop to 0.5 POLYCUB per block and continue to drop in half every single month after that.
Short-Term vs. Long-Term
What we're experiencing now is the extreme volatility of DeFi 1.0. POLYCUB is acting like a normal DeFi 1.0 yield app in the early days because of the high emissions rate.
This means that APYs for staking on polycub.com are astronomical. It also means that there is a lot of POLYCUB entering the circulating supply with each passing block.
Now that the emissions are dropping heavily, you're seeing the difficulty to mine POLYCUBs increase.
Take a look at this supply chart that @dalz made in his analytics post on the POLYCUB token:
The POLYCUB supply increases drastically in these early days but then it completely levels off after month 1.
POLYCUB is designed to be a limited supply release. There is a max cap on the amount of POLYCUB that can ever exist and we're going to watch all of this play out in the next 2-6 months.
If you look at POLYCUB with a 5 minute view, you're going to see a token that is hyperinflating with insane APYs being paid to TVL on the platform.
If you look at POLYCUB with a 5 year view, you'll see it how I see it: a limited release token for a Web3 community that will build and grow for the next 20 years.
If you believe in LeoFinance and what we're building for the years to come, then you'll see what's happening here.
With all this craziness happening in NFTs, it's hard to miss the comparison: POLYCUB is like an "NFT Series 3 Release" by the LeoFinance community.
All of the big NFT projects (including Garyvee's Veefriends) are doing a Series 2, 3, 4, 5 release.
Splinterlands does this with each new release of packs, i.e. Chaos Packs that are now available.
Each release is basically just a new token that is created in a limited supply environment.
What we've done with POLYCUB is create the same setup but we've added the interesting dynamics of yield optimization and DeFi.
I believe that POLYCUB is going to play out exactly as expected in the long-run. Despite all the short-term FUD and volatility, POLYCUB is designed to completely flip deflationary in the long-run.
Low LP Supply
This community is filled with the biggest diamond paws in the industry. The vast majority of POLYCUB is sitting in the xPOLYCUB staking vault for the long-run.
This is a double-edged sword. It shows just how adamant people are about hodling POLYCUB.
We need more POLYCUB-USDC and POLYCUB-WETH liquidity. It's pretty crazy that there's nearly $1M in xPOLYCUB but only $250k in each of these 2 liquidity pools ($500k total).
Though, it's not up to anything other than simple supply and demand economics to make this play out in our favor: as more and more POLYCUB gets staked as xPOLYCUB, the APY for the 2 farms gets even more attractive which will eventually drive large amounts of liquidity to those 2 farms. It's just a matter of time.
Keep Calm and Stack On
Ignore the FUDsters. I think everyone is in a vicious cycle of viewing the price and seeing that it dropped. What they don't realize is that at 2,000%+ APY, the price drop is irrelevant in the multi-week timeframe.
It's only been 7 days. You can call me up in 7 years and ask how the LeoFinance Web3 community is doing and how POLYCUB is a forever number go up token after the emissions rate ended 6 months in 💎 🐾
These are the early mining days of a "bitcoin-like" scarce asset. I believe that POLYCUB will be looked at in the future like an NFT series by our community. In addition to that value, it's got the real-world utility of being a yield optimizer that will pay yield via the Protocol Liquidity constantly creating demand on the open market - buying POLYCUB with PoL earnings and distributing that POLYCUB to LPs for APY incentives (no more emissions rate, only buyback and distribute).
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