CUB: Ditching the Simplistic Tokenomics

in LeoFinance3 years ago (edited)

DeFi is a game that's all about gripping inflation. Whilst supply-capped coins such as BTC strive for providing useful use-cases for the ultimate goal of achieving a price uptrend, DeFi tokens have the added challenge of managing inflation, and the price is only an afterthought. The maintenance of adequate burn rates across the board is vital to the standing of the respective project's native token, and we are all are aware of what takes place once that grip slips.

Using the much more mature and established PancakeSwap as a reference, CUB is in pretty bad shape supply-wise proportionate to the amount burned.

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At all times, PancakeSwap has managed to keep the circulating supply of CAKE as close as possible to the burned amount, whilst CUB struggles in that regard. The unregulated, continuous minting and harvest of CUB coupled virtually no burns after the initial %2 buyback creates quite the hike for CUB to surmount.

This is in part due to the extremely simplistic and primitive tokenomics CUB has adopted since its conception, CUB has adopted what many other no-name DeFi projects had as well; The PCS frontend and the bog-standard, barebones GooseDeFi model of tokenomics.

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Goose's model of tokenomics inherently, and counterintuitively, favors the sharp sell-off of harvestable profits made in the native token, resulting in steep price declines no more than a month after the project had deployed.

This is why most DeFi projects out there are invariably short-lived. Some might collaborate and partner with others to bring in a new stream of money into the project to prolong the inevitable and pump the price of the token, but ultimately, all of them end up in the last step of the flow chart above.

The main element missing in this model of tokenomics is the element of utility, use-case, or anything that incentivizes holding the native token. With the coming migration to the autofarm model of interconnected, convoluted tokenomics, a reversal of trends is a plausible possibility for the native token, whilst also maintaining significantly higher APRs as well as outputting desirable coins, such as BNB, instead of CUB to incentivize and reward those who stake their CUBs in the vault.

With kingdoms, the game changes.

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The biggest advantage for those in the Den, after the migration to this new tokenomics ecosystem is that instead of earning an extremely volatile DeFi token after staking the token itself, they earn and harvest the paramountly more established, deflationary BNB.

Simply amazing. The only other DeFi project that offer the same setup of tokenomics is Autofarm itself, Beefy Finance and very few others.


If the migration finalizes without a hitch, CUB Finance is soon going to see itself catapulted into the league of the legendary auto-compounding projects. I'm glad I was fortunate enough to have been onboarded by @trumpman through one of his Publish0x posts and subsequently exposed to CUB finance shortly afterwards. CUB is winding up for a big hit, be a part of it!

All pictures and flow charts made by me

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This is a great write up! Few understand the reason for CUB's (EGG, and all the others) decline and this is exactly why. We figured out early on from watching EGG evolve that this model wasn't very sustainable.

Our goal since then has been to develop a new system. While complex (Kingdoms - autocompounding, ongoing management fees and revenue share to the CUB Kingdom Den), it introduces tokenomics that are sound and allow us to evolve and grow CUB's offerings.

Kingdoms will introduce a lot of new opportunities for pooling on CUB and earning with Autocompounding and composable farming contracts. After that, staking and our Polygon platform will become the main focus. Down the line, we'll work on incoporporating other exciting DeFi features like synthetic assets, lending and even prediction markets.

DeFi is an exciting landscape. Great things take time to evolve but I think the payoff down the line for LEO and CUB is going to be massive.

Would you mind if we utilize your infographics in some Leo content? We'll put credit in the description, if you're okay with it. Let me know! 🦁

p.s. welcome to LeoFinance. Glad Trumpman brought you on board.

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Thank you! That's quite the roadmap you got for CUB, it'll be a hectic, bumpy ride but the ultimate payoff will be enormous, and most importantly worth work!

Would you mind if we utilize your infographics in some Leo content?

Absolutely, you have my go-ahead.

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Such a well written post! :D

They ain't getting my cubs, I harvest and stale and continue to do so :D!

It is a bit tough waiting , when finally all the paper-handed harvesters will be shaked away.
Just a while ago I was checking how many more CUB must be sold to drop CUB's price another -50% from where we are.
Looks like ~960K tokens. Maybe paperhands do not hold that many any more?

But don't think you will get my CUB's even if it goes down to $0.26
Hell NO ! Forget it !


I see no any recent BURNS? Is Khal holding burn-funds until CUB reaches $0.25, so we can get a nice burn-fireworks???

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I didn't realize we were holding burn funds.

Thanks for the info.

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I've always admired how strong and faithful your hands are.

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Great write up and perspective. We have been waiting on Kingdoms because we are seeing the major upside in the new format, but the wait... lol... Anyway, we have been floating around farming some other platforms but now have it all back in CUB. Also getting some staked in the den for the new staking setup. Reblogging for our audience at https://coin-Logic.com. It will show in the front page rotating news feed.

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Awesome article! Gonna tweet this out to DAO's as part of @Trumpman's twitter initiative. I think this explains CUB's uniqueness with kingdoms quite well!

!LUV

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I still don't understand kingdoms, would love you to respond with a good article if you have one.

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Oh good job explaining why most Defi networks don't work. I didn't realize Kingdoms would have such an amazing effect on Defi.

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According to the last AMA we are working on it, I know that soon we will get out of an unsustainable system to enter a new phase, GO FORWARD.

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Amen 🙏 ! I wrote about this and few understand it. There will be almost no « free rider » in the CUb train 🚂 later.

CUB needs to earn almost as much fees as they give CUB rewards. If it happens, the token will moon !

Your explanation as very very clear ! Thanks

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Is it possible to burn so much Cub?

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Oh I forgot to add that I was not surprised to see that @trumpan the master shiller onboarded you 😉

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This is an informed read. And as im invested into the kingdom system this gives me the confidences to stick around in this project and hold my investments for the long term

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I will try to play yhe game

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You have done a very good job explaining the unique tokenomics of CUB in an understandable way. I like a number of people have been purchasing CUB while it is at discount prices.

The crypto market in general is in a slump, but having been around a while I understand that this happens from time to time. Those that look to long term gains instead of short term gains will be successful.

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Thank you for writing this so elegantly and simple enough for a layman to understand. I only recently dipped my toes into DeFi by getting involved in Cub DeFi and I am appreciative of the opportunity to learn and understand.

💥Ba-da-BOOM !💥

toruk_washere_bonus.jpg

More info why you see this.

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Your post was promoted by @jfang003

Great read !! You made it really easy to understand.
This exceeded my expectations for the CUB Kingdom, it's really a game changer, and a great foundation for the project to keep growing sustainably.

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I agree! The idea of increasing the utility of CUB and the introduction to autocompounding are putting us at the right place at the right time!

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Thanks for your great writeup. so in short DEN will create sell pressure , and Kingdom will create buy pressure.
So abolishing DEN can be next step?

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Thanks for your information! it's much easier to understand with your flow chart.
I think Goosedefi also knew this issue. That's why they come out with the "Vault" and GUSD where the GUSD is backed by BUSD. The harvest in GUSD vault will be paid in BUSD.

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Thank you. Goose is stepping in the right direction, that's for sure, I was there the minute they deployed their vaults. But what I did not quite understand is why the price immediately took a dump from $29 to $5, in a single candle, almost within the same hour the vaults deployed. I'm not quite sure what happened, but I'm thinking perhaps people decided to move on to a much more solid token like CAKE, then stake it in one of the vaults instead of risk it with Goose.

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Thank you. HIVE's tokenomics model is quite different. CUB, as it stands, is a DeFi project that's in a transitional period and it's current model has yet to have an element of utility. HIVE, on the other hand, is an entire ecosystem full of life and use-cases. The HIVE token is used to build entire tribes so there's always demand present at every corner of the ecosystem.

As well, HIVE, unlike CUB, is not minted at a continuous rate but rather on-demand upon curating a post.

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