This is a very informative post for me. Didn't know where the money for the high APR came from. It's printed. And the amount is dropping pretty fast. I wonder what happens when in a few weeks the newly printed CUB is low, the APR's downed to two-digit percentages or even lower. Why would users keep their CUB locked up? Is some instrument preventing users to pull out their funds? Last year I jumped on the WISE project. That project forces the users to define the lockup time and enforced penalties when pulling out funds earlier. A similar mechanism may be required for the CUB dens and farms as well, otherwise, I have a hard time believing why these dens and farms will keep funds of users when they believe they can make more money in some other den or farm, or a trade/investment in some new project with a much larger upside.
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You're right, the funds are not actually 'locked' in any meaningful way... so the only incentive for users to stay engaged instead of jumping to other projects is community, relationships, and the pace of actual development. If users think that CUB will gain value based on the development roadmap, then they might stay in the dens to earn more CUB, even at a lower APR.
CUB coming down today, I suppose for two reasons: BTC dipping and maybe also some users getting rid of their CUB now the inflation is adjusted. CUB Den APR is around 1000% today.
People that juggle yield farm projects would move on to the next project with the inflation adjustment. They have to sell off some CUB to do so, but it means that yields 'stabilize' a little more for those that remain... until audit results and proven longevity start to attract more serious players that are slightly more risk averse.
the audit is a nice milestone, that for sure will attract some other users!
Keep an eye on this page:
https://docs.cubdefi.com/security/audits
Hopefully will be some updates on it soon!
Owww Thanks! Great page to refresh from time to time! 😉