RE: LeoThread 2022-09-23 15:26

[forexbrokr]

Yes, when liquidity is added the bHBD/bHIVE LP, yield goes down.

But remember this yield is paid in CUB tokens, not bHBD.

There is no bHBD being minted here.

Comments

[jocieprosza]

But remember this yield is paid in CUB tokens, not bHBD.
There is no bHBD being minted here.

Of course, I'm talking about lesser incentive for HBD holders to mint bHBD which gives less funds for cub buybacks. So the problem is, we will reach the threshold where yield goes down to a point it won't be feasible to mint bHBD. And there will be no or little funds to buy cubs.

While the yields will go down as more money is added to the LP, the fact that LP has more liquidity will allow people to do bigger arbitrage trades.

Do arbitrage trades generate funds for multi token bridge cub buybacks?

[forexbrokr]

I'm talking about lesser incentive for HBD holders to mint bHBD which gives less funds for cub buybacks. So the problem is, we will reach the threshold where yield goes down to a point it won't be feasible to mint bHBD. And there will be no or little funds to buy cubs.

It is just a manner of offering incentives - Something that on the centralised Cub, Khal is in control of.

If he keeps them higher than the 20% you can get by putting your native HBD in savings, you will always get people putting them through the bridge and pooling.

Do arbitrage trades generate funds for multi token bridge cub buybacks?

Yep, trading fees for all the arbitrage churn generate revenue.

Once liquidity in the LPs gets really fat, it's here that will generate more revenue for CUB buybacks than new deposits.