CUB a Lubba Dub Dub

edicted (82)in LeoFinance • 4 years ago

Alright then.

Remember those times that LEO launched something and I just couldn't shut up about it for weeks? That may be happening again to a blog near you. Fair warning.

Totally blown away by CUB.

I must admit, I was very skeptical of all these new tokens. There's a fine line between legit utility and a greedy cash grab. Will CUB and everything else be able to justify its own existence? Why didn't we just use LEO itself for these functions?

If we had used LEO in place of the new token (CUB) we would have been putting the network at risk. CUB is our gateway to Binance Smart Chain: a clone of Ethereum that is more centralized but much lower fees. This is how we can accomplish DeFi on a smaller scale without having to worry about $100 transactions.

CUB has EXTREMELY high inflation now. Extremely high volatility, and extremely low total supply (200k total so far and climbing fast). Messing around with CUB at these early stages is very risky with very high possibility of reward. I risked $400 last night and I've already farmed $100. 25% ROI in 12 hours.

The CUB airdrop is going out today.

I'm being told the airdrop is included in this total supply of 200k tokens. Numbers like 100k total airdrop is being thrown out. That means you should consider yourself lucky to even receive 1 CUB for 50 powered up LEO over the years.

However, CUB tokens have already mooned to $10+ per coin. Even if I only get airdropped 1000 CUB that's theoretically $10k. Lot's of people are comparing this airdrop to Uniswap. They see it has highly valuable but are also expecting a dump. Uniswap dumped all the way down to $2 before it recovered and went $30+.

I'm personally hoping for an airdrop dump today. I'm looking to buy more CUB. This is a legit product, and I have yet to encounter any bugs, which is very impressive.

Those who aped in blind yesterday on day one have made out like bandits. These yields are massive and unsustainable. At one point you could earn 30000% per year (82% APR per day). There is still a lot to farm but the competition is ramping up.

In total, there are currently 22 ways to farm CUB.

12 LP farming pool pairs
10 single token stake

https://cubdefi.com/farms https://cubdefi.com/dens

So even if you're terrified of the price of CUB crashing into the mountain due to these unsustainable yields, you can still farm it without even having to hold CUB. There are several options to farm CUB using nothing but stable-coins (very low risk). This is the key to luring the entire BSC network (PancakeSwap) to our platform.

Stable coin Dens

These are the 10 options to farm CUB using nothing but locking up a single token.

CUB (10x)
BUSD (2x)
WBNB (3x)
USDT (1x)
BTCB (2x)
ETH (2x)
DAI (1x)
USDC (1x)
DOT (2x)
CAKE (1x)

The multiplier signifies more inflation is being generated in order to incentivize more money being locked in these areas. If we try to farm CUB with random coins that aren't CUB we see there is a 4% fee that gets scraped off the top. This fee is used to buy and burn 80% CUB and 20% bLEO, theoretically increasing the price. On the first day this vault generated more than $50,000 worth of deposit fees.

We can see that staking CUB itself is being greatly incentivized with an x10 multiplier on inflation. It also has a 0% deposit fee. It's a good deal, but it's also risky because CUB is going to be very volatile.

Interestingly enough there is not an option to stake bLEO to farm CUB. This feels like a mistake, especially on the LP side. I would not recommend trying to buy CUB with bLEO directly. Liquidity is thin because there is no farm to incentivize liquidity.

Scratch that...

If you try to buy CUB directly PancakeSwap automatically routes you through the path of least resistance. Yesterday there were some problems and I sold a tiny bit of bLEO for 50 cents a token due to poor liquidity. These liquidity issues have been fixed for the most part.

FARMS

LP farming has higher yield than staking because it is more risky. When you pool your assets into PancakeSwap they are technically for sale, and if the price of the ratio moves in either directly you'll suffer impermanent loss until the price moves back.

Meaning if CUB spikes up in price and you're farming CUB/BUSD, your CUB will be sold and you'll get BUSD in return. You could lose money in that scenario even if the yield is high. Conversely if CUB dumps your BUSD will be used to buy CUB, and you'll lose money once again from the impermanent losses.

The most incentivized pool by far is CUB/BUSD. This is something I and @khaleelkazi talked about briefly a while back. The LEO network definitely needed a good stable-coin pairing. This is it. We can also see the bLEO-BNB pair in there (only 2% fee).

BNB

On Binance Smart Chain, BNB is ETH: it is the gas. As far as MetaMask is concerned, we see that BNB and ETH are interchangeable when we are accessing Binance Smart Chain.

A problem that a lot of users run into is getting BNB into their BSC wallet so they can actually pay gas fees. I think it should be a high priority for the LEO wrapper to bLEO to also provide a service that trades LEO for BNB so people can sidestep Binance's IP block without the need for a VPN. https://wleo.io/bsc

I've already given BNB to 3 different accounts trying to pay gas fees.
We need to automate this.
Just checked LEO Discord general chat... should be up and running in a week or two.

Hedging risk.

I'm expecting a lot of people to sell some (or half) of their CUB airdrop into BUSD and then farm the CUB/BUSD pool. This is the safest pool to farm because one side is a stable coin and it has the most liquidity and highest inflation multiplier. This gives a very strong yield while still hedging for wild shifts in price.

There are also other very interesting Den pools like BTCB and ETH. If anyone has BTC or ETH laying around they can throw it into these pools for a 4% fee and farm completely risk-free once that 4% is paid off (currently very quick because of the high yields). Getting in now is the time to do it.

Conclusion

I'm sure there's still a lot more to say but this is all happening so fast I'll have to break it up into multiple parts. The airdrop is going out later today (very soon).