The point is to grow a magic money tree...
The value of CUB comes from... people buying CUB so they can stake it so they can earn more CUB. (Yes, this is really where it comes from).
Infused into this is the hope, wish, speculation, that the LEO team will develop additional features that confer value that isn't just ponzi. If they are able to do so, then CUB will hold value and it will have been a good experience. If they are not able to do so then CUB will eventually sell off as yields drop and speculators move to greener pastures.
The CUB den for instance (where I've staked my CUB)... What value is staking conferring over just holding liquid?
No value except for a little virtue signaling... and the fact that it's difficult for the smart contract to accrue rewards for CUB holders that haven't staked.
Yeah, that was my fear. Even though I'm suffering from massive FOMO (other than my free tokens) at the moment with all the hype around CUB, I don't want to sink any actual money into it until I can see a point to the token. Even though I'll probably miss out on some good coin in the meantime.
Hear Hear :)
Posted Using LeoFinance Beta
Ahhh, this clarifies some of my questions in the other comment. At this stage, the dens and farms are like Nothing. You even use the term Ponzi... and that may indeed be the correct terminology. I've read from the Leo team - or some promoters of the Leo team, not sure anymore - Leo team is planning to use CUB as the foundation of new DeFi projects. But indeed, that's all an unknown at this stage. We got some free CUB, cool. I have them in the Den and got me 10% return in the last 2 or 3 days, not sure anymore when I entered the Den. But to decide to buy some CUB from the market and stake them to benefit from the high APR (which is dropping fast as per your post and comments), seems pure gambling to me. When CUB value would be halved at the Swap/Exchanges, we need a few weeks of 1000% APR to counter that. I suppose it was best to get into these Dens right at the start when APR was like 8k% or something. That said, we may spend 15$ per CUB, which is now worth only 1/3. I do believe in the Leo team, but this whole UB DeFi thing seems to me even riskier than back in the days when ICO's was the thing. Maybe it's like what I discovered this morning: the SHIB token. Since 4AM UCT this one is pumping. Elon Musk tweeted about it. The website says TBD... even for the whitepaper. From zero to a lot in no time. Gambling with a high-risk profile, like playing roulette on numbers instead of black/red or something. I must say: I wished the Leo team launched this CUB thing only after they had some other project(s) ready to launch making use of CUB. Now it looks to be a little like: Let's try to make money with nothing. Come across to me less honest then the team likely is.
Posted Using LeoFinance Beta
I don't think that it's dishonest, more like 'strike while the iron is hot' and then as they release the rest of their roadmap there is a core group of CUB holders that are highly motivated to try out and promote the new products.
I think you are correct. The LEO team looks to be very honest and like what they did so far.
Will the ERC20-BEP20 bridge not add value to CUB? Honest question.
Posted Using LeoFinance Beta
There is some likelihood that it will. It depends on how it's implemented and then how well it's promoted. It seems to me that a very small portion of the committed LEO community have previously been involved in Defi on Ethereum, so they're not really the target market for the bridge to be widely adopted. Will that community be successful at promoting the bridge into the rest of Defi users?
If the bridge can support a wider range of Defi tokens than Binance bridge supports then it would have a higher degree of utility, but supporting a wide range of tokens means vaulting the supported tokens on both sides of the bridge... so it's capital intensive. That may be a future use for the CUB dens, though? Again a lot depends on their implementation and I haven't seen the specs.
Thanks for the answer! I guess we will find out then :)
Posted using Dapplr
So it may be smart to pull out your initial investment when it grows a lot.
So then you only are playing with your earnings?
Posted Using LeoFinance Beta
i will keep an eye on the chart and bail if I don't like the pattern anymore. I'm not too concerned about a rug pull in this case.