Is it favorable to introduce a block on the harvesting of rewards?
The fact is that in pools where a harvest is allowed to be made at any time, the price range is always affected, whether for positive or negative. Although it usually affects a higher volatility of the token.
Implementing a lock-in time to withdraw rewards, may sound at first discouraging, since you don't have a direct availability of rewards, and it doesn't allow you to "get in and out" so easily from such DEFI.
But, if we look at it closely, this small lock-in can be very positive for the token, as it makes the harvesting more gradual on the platform, so that the price movements are not as large as a "free harvest" could be.
I would like to talk about the #ValueDeFi case.
Within two weeks of Value's release, it implemented a condition in its pools to withdraw the harvest after 7 days. And in my personal opinion this has stabilized the price variations. It is easy to come to the conclusion that the fact that big whales do not sell their rewards and exchange them for something else on such a continuous basis, positively affects the price. It makes it much more difficult for two or more big whales to get together and reap their rewards.
Positively it also affects market psychology, as it substantially avoids panic sellings due to a sudden price movement. Psychologically, the people who participate in the pool have less room to move and are guided by their emotions, so the positive aspects are: less price volatility due to the continuous sale of the token and less psychological pressure on the market. As a negative point we can highlight the fact of not having your reward available 24/7. But I think it wins on the positive aspects, since you also win by not withdrawing at prices that could be undervalued with respect to its real price.
Would it be good for #Cub Finance to apply such a block?
In my humble opinion, I think it would be productive to apply a 7-day lock-in like ValueDeFi. Although they are projects that follow different paths and their vision of the token is even contrary in certain points, applying this blockade would positively affect the price of CUB, and above all it would considerably reduce the psychological pressure typical of these first weeks.
Making them more bearable, and on the other hand, providing a plus of confidence to new investors and increasing liquidity on the platform.
I would like to know your opinion about this, would you agree with this blocking of rewards, would it affect positively or negatively your #DEFI investment plan?
Thank you for your attention and happy monday.
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You can see the latest update from Leofinance who spoke with a well-known brand about this, of course it would be long-term benefit for the platform
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positive in the long term and in the first weeks of the project, which is usually the most speculative phase.
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