I have used CUB Finance a bit before, but not made this sort of analysis for the real results.
Thanks to @nrg for recommending to start this experiment. After about a month of collecting the real numbers, the results seem pretty good so far. It's not probably the safest thing, but considering everything, the results show pretty stable results actually. This is not any sort of advice, but just an experiment showing, what is possible.
Starting to try out DeFi, it might be a bit difficult to understand all of it at first, but once you learn and try it out, it's actually not that complicated anymore, and you are ready for the future, no matter which DeFi platform you will need to use. They user experience is pretty much the same currently, just some minor differences.
Let's look at the numbers now.
The allocation
How did I decide the allocation? Well I went aggressive with the CUB/BUSD farm because of the biggest ROI. Currently it has 137% APR. But also put smaller amounts in the CUB Kingdom and bLEO/BNB for a bit of stabilization - not that the % there would be much smaller.
For the normal world standards all of the % are so big it would probably seem like some scam for people. But I can say, it's real, at least so far in this experiment it is all there and can be withdrawn any moment if needed.
Starting with $500 - amount that is not too small, but not too big
Depending where you live, it might be a very big sum, but for most people in Europe it's not small, but also not too big sum. I think this sum is perfect for this experiment. You can always calculate the returns for smaller amounts from this, but the transaction costs might start affecting the results more with smaller sums. All the numbers in this experiment should be about 95% accurate. I did compound the new farmed CUB every once in a while and put it in the Kingdom and CUB/BUSD farm.
CUB price over the month
Here is the graph of the CUB price itself moving over the month. So started at about $0.742 and ended at $0.684. So CUB price declined actually about 8% over the month.
Daily change in % of CUB price. The most volatile days we saw 7.5% down and 7.2% up, and most stable days the price didn't change much.
Results from the $500
As we started, the experiment was worth $500. At the end of the first month it was worth $552.
How is this possible you might ask, well I would say magic. What I find the most interesting is that the price of CUB went down over the month, so that's even more impressive. So the result is that it all generated 10% in 1 month, over a year if everything would go in the same way, it could generate over 100%. Of course nothing like this is guaranteed, and things can change.
The volatility is there, and can be massive when looking day after day, but over a month so far it smooths out.
Here's also the volatility comparsion of CUB price and the experiments Farms and Kingdoms value.
As we can see from this graph, the CUB is more volatile itself, than holding it in the Farms and Kingdoms combined - that's how it should be. This also makes the upside swings smaller, but that might be worth to sacrifice for a bit more stable results depending on your preferences.
Hope you find this info helpful or interesting, will keep collecting and will post more updates in the coming months.
PS! If you would like some specific sort of information, that I didn't include here, let me know, so I can include it in the next months update.
Thank you for your attention.
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Nice break down, I'm always looking for little ways to add to my CUB Farms and I roll the CUB that I earn over to the CUB Kingdom so those are growing now too. Compounding Interest is an amazing thing!
I'm making sure I continue to add to my holdings not only with inflation, but with small deposits at least once a month.
Even in the US since I have no debt I could nearly live on the inflation if they remain stable. Obviously I am not counting on that, but it's been great to grow my bags.
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Thanks. So far Cub seems a good place to grow.
If you could live of the inflation, then you are doing really great that you are not doing that yet. Keep going!
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Your profile told us that you aere a whale ! It must feel good to be in that position, just adding a bit every once in a while and surfing the DeFi wave :D
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Thanks for sharing your valuable experience @trumpikas. I want to hit at least 1000 CUBs staked in the Kingdom. That's the base for me! Good thing is that I am reaching that mark quickly. Growing on their own day by day. Every once in a while I throw in some of my own money to push the stake.
As the ecosystem expands, CUB will be more valuable than it is now. ✌
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Good luck with growing your stake!
Thanks, mate. Same to you!
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Very nice metrics ! with day to day numbers and updates.
Quite a nice return despite the fact that CUB went down and the high volatility.
Thanks for sharing
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Thanks, yes, the return seems nice so far.
Not bad at all $22 profit on $500 investment is huge compared to traditional banks.
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Excellent, I had not calculated it as a monthly experiment.
Of course it has a lot of risks depending on the market, but the 10 of the investment in a month seems to me something very profitable considering that it is a passive investment, and if we add the burning of CUB that is approaching then it becomes much more profitable.
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Yes, the simple and almost passive growing is what is the best part about it. Future should be pretty good for CUB, but we will see.
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Very nice! I'd say you got in at the best time as the IDO is going to cause a big ripple in CUB's price. a %10 return in just under a month is pretty solid.
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Yeah, waiting to see what the IDOs will do.
Posted Using LeoFinance Beta
Really good breakdown for a newbie entering Cub Finance.
PS. Just gotta edit the post and throw in a link to the platform!
Posted Using LeoFinance Beta