So I have been thinking about this a lot, and I just don't see any way polyCUB will be sustainable over the longer term at all (despite what Khal has been saying). Ultimately, polyCUB provides no service that people will pay for to drive value to the token. It's purely based on earning yield. The only reason to buy the token is to earn more of the token.
The same is true of BSC CUB, but that had continued inflation at a constant rate and was still slowly losing value over time and only gained value when additional things were added such as IDOs or airdrops. Since polyCUB will very quickly run down to zero inflation, and it doesn't have any planned other things to drive demand (IDOs, airdrops, etc), I don't see why there will be any buying demand at all.
I understand the idea of the protocol owned liquidity which will earn yield that will be used to provide buying demand for polyCUB, but unless I'm missing something I can't see how that will be any significant amount of money or how the "risk free value" of polyCUB could ever be more than maybe a few cents.
I would love to see some numbers around the PoL from the team, but the way i understand it, the PoL gets 10% of the yield from the tokens in the kingdoms. If we assume $5M in the kingdoms, then assume that the yield on that is 10% (which is generous), and then polyCUB gets 10% of that - it comes to $50k per year in PoL, and then if that PoL earns 10% yield it comes to only $5k / year in polyCUB buybacks. Please let me know if I'm missing something here.
Some real talk here :)
Its seems that a lot of defi tokens stugle to maintain value, even the top ones like uni or cake.
This protocol has a lot of angles and feautures, and I'm curious to see how will they play out, like the bonding that will sell the token at premium for other tokens. Still the protocol needs to earn those tokens first :)
With this said, the top yield aggregators like autofarm and beefy dont have any inflation of their token at all, and aditional APR. They just provide a service of autocompounding and take small managment fee from where they buyback their token and give yeild to the users that stake it. They dont have things like xPC or bonding.
The ultimate service that polycub provides is autocompounding.
With this said they better add a lot of great pools from other defi tokens, so people will want to use it as a service.
someone could also build a Dapp on top of Polygon and accept pLEO and polyCUB as payments within the Dapp. They could even duplicate an existing Dapp built somewhere else and replicate it on Polygon and implement these Tokens. And then do it again on another Blockchain when this is repeated over and over again.
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I am glad to hear these realistic assessments :)
Creating an edge for early investors, raising funds, then using those funds to attract further funds also creates value. I believe creating liquidity is a key success factor of crypto. The downside is that it is not sustainable when not supported by utility.
I believe that utility and financial mechanisms based on game theory complement each other.
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