On March 5, PolyCub’s successful launch of the next generation of decentralized finance (DeFi) yield optimizers showed the LeoFinance community and DeFi industry what happens when a team does the proper research to develop an idea with the intention of creating long-term value and opportunities for its community.
By merging the mechanics from several other successful projects while running thousands of Monte Carlo simulations to create the ideal scenario for yield optimization on the Polygon network, PolyCub achieves what few — if any — other projects have achieved before: A long term, deflationary and self-sustainable DeFi ecosystem that maximizes yield generation for user assets.
A mere 20 days after PolyCub’s genesis, running simulations has morphed into real-life experimentation. The LeoFinance team has proven several theories that served as a basis for the tokenomic design of POLYCUB and have confirmed the potential of the game theory behind the token’s ecosystem development:
- A hyper-deflationary token emissions rate leveraged by the incentive of staking cross-chain xPOLYCUB tokens to provide liquidity for liquidity providers (LPs) in exchange for a high annual percentage yield (APY). It forgoes the long-term holding mindset by capping the POLYCUB supply at approximately 7.2 million tokens and guarantees that the supply will never grow beyond that emissions rate.
- Staking the native token POLYCUB into xPOLYCUB gives the tokenholder a share of the generated value through the total value locked in the protocol while offering an exponential value proposition in relation to the native token’s value. The POLYCUB-xPOLYCUB ratio will always go up — this can be seen on the PolyCub.com/staking page. The value of xPOLYCUB comes from ongoing emissions and early harvesting penalties. The self-sustainability theory becomes true, and token emissions are redirected into the hands of long-term diamond hands in the single-stake vault
- A safe option for tokenholders: The PolyCub kingdoms offer the highest yields on the entire Polygon network by leveraging cross-composable, yield-optimizing vaults that operate with management fees held by the treasury as Protocol Owned Liquidity (POL) and ultimately buy back POLYCUB to create endless demand and permanent liquidity.
This is not the whole story, but these three value generators are more than enough to make anyone feel curious about PolyCub and make them do their own research on PolyCub.com. The POLYCUB token is designed to go up in value in perpetuity, just as the scarcity dynamics and utility of Bitcoin (BTC) do for the largest cryptocurrency on the planet.
To add to these three key value propositions, PolyCub is built by the LeoFinance ecosystem and has one of the longest-standing communities in DeFi with a background in building blockchain apps for more than three years. With one of the most active communities in the industry that has tens of thousands of long-term holders, it’s no wonder that every single day more and more people buy into this innovative ecosystem. It is just the second step in a long and ambitious roadmap to provide value and generate more opportunities for those who do their own research and decide to join this platform as xPOLYCUB stakers.
The future upside for POLYCUB is astronomical
It is true that the farms, kingdoms, vaults and xPOLYCUB staking provide APYs in the four figures, but that is nothing compared to the real long-term value proposition that PolyCub’s roadmap proposes:
The next step for PolyCub that is currently happening is bonding, which provides permanent liquidity to the protocol via POLYCUB-USD Coin (USDC) and POLYCUB-Wrapped Ether (wETH) bonds. Allowing other bonds in the form of Wrapped Bitcoin (wBTC)-WETH, stablecoins and other kingdoms LP assets creates the opportunity for users to bond external assets and earn greater returns on POLYCUB. These bonds are then held by the POL and used to buy back POLYCUB and distribute long-term xPOLYCUB LP incentives.
Once the emissions rate of POLYCUB drops to almost zero, the POL will begin to buy back PolyCub tokens from the market and thus continuously add demand to the token in perpetuity. Then, the protocol will distribute the market-bought PolyCub among liquidity pools that will no longer be earning from the emission rate — another self-sustainable theory to be confirmed — and will then be earning from buyback distribution.
This process will send the vast majority of POLYCUB back into the xPOLYCUB vault, eating away the circulating supply and providing more POLYCUB scarcity and more demand for xPOLYCUB staking.
Are users convinced about the future of PolyCub?
There’s one more value proposition on the near-term roadmap that is intended to drive value to diamond paws — the equivalent of diamond hands in the LeoFinance community — and that is collateralized lending.
Users will be able to stake their xPOLYCUB tokens in a collateralized loan contract and take out a loan from the POL in exchange.
The release of POLYCUB provides a glimpse into the future of DeFi 2.0 yield optimizers. What users see taking place is the early distribution of a highly scarce asset — with only 7.2 million POLYCUB to ever exist.
That scarce asset is being coupled with the dynamics of long-term, sustainable yield generation through POL. These mechanics are then combined with collateralized lending for xPOLYCUB staking that gives users the option to diamond hand POLYCUB in perpetuity. Instead of selling POLYCUB, users are given the ultimate value proposition to hold POLYCUB as staked xPOLYCUB, earn more than 30% APY and take out self-paying loans against their stake when they want liquidity.