Cub Finance is a leading DEX (Decentralized Exchange) & a DeFi (Decentralized Finance) yield farming platform built on Binance Smart Chain (BSC). Farming rewards are given out in $CUB, the native token of the platform which is a BEP-20 Asset (BSC). It was created in March 2021 as an extension to Leo Finance Project, a blockchain-based social finance community that has been building applications on a variety of platforms and blockchains since July 2019. Their flagship social media application Leofinance.io is used to connect and socialize within the community. It also pays rewards to content creators and curators in their native token called LEO built on Hive Blockchain. bLEO connects Hive to BSC (Cub Finance).
If you want to know more about this project, please check out the basic guide on Cub Finance by @crypto-guides. In this blog, we are going to discuss how Cub Finance works and what are its various components. Let's start!
There was no presale that happened at the launch of the platform. LEO token holders were airdropped (Hybrid Claimdrop) a percentage of CUB tokens through which they could start their DeFi journey in CUB Finance. There was also an option to exchange different BEP-20 (BSC) assets from the CUB Finance DEX to invest in multiple farms and dens (Liquidity Pools)
CUB Token Details
Contract Address: 0x50d809c74e0b8e49e7b4c65bb3109abe3ff4c1c1
Chain: Binance Smart Chain (BEP-20)
Supply: Unlimited with predictable inflation via Emission Rate
Emission Rate of CUB Rewards
Week 1: 3 tokens / block
Week 2: 2 tokens / block
Week 3: 1 token / block
Note: Week 1 started on March 8th. Since we are post Week 3, the emission rate is now 1 CUB/Block.
bLEO Token Details
Contract Address: 0x6421531af54c7b14ea805719035ebf1e3661c44a
Chain: Binance Smart Chain (BEP-20)
Supply: LEO can be wrapped or unwrapped to bLEO with 1:1 ratio.
BEP20 LEO (bLEO) is a wrapped version of the native platform (LeoFinance.io) token - LEO. It acts as a bridge between Hive (LEO) and BSC (CUB Finance).
bLEO Use Cases:
- Provide Liquidity
- Unwrap & Exchange To/From ERC20 Equivalent (Bridge)
- Unwrap & Stake For Influence on LeoFinance.io
Burns & Fee Distribution
100% of the revenue collected from Kingdoms (Auto-compounding vaults) is used to either reward $CUB stakers or burn $CUB:
- 7% management fee is collected on external platform harvests from Kingdoms is used to purchase $CUB automatically from the market and then all of it burns.
- 3% management fee is collected on external platform harvests from Kingdoms is converted to BNB and distributed among users who stake $CUB in the CUB Kingdom.
Note: CUB Kingdom is an auto-compounding vault that does not require you to harvest your yields. It automatically buys $CUB from the market in re-invests into your original stake. A full explanation is provided in the next section.
What are Farms, Dens, and Kingdoms?
Cub Finance has different kinds of Liquidity Pools where you can pool your single or LP (like CUB-BUSD) to earn CUB Rewards. They have different features which are explained below:
- Farms: The farms are the liquidity pools inside CubFinance. You can pool two tokens (like CUB-BUSD or CUB-BNB or bLEO-BNB) with each other to earn CUB rewards. They have to be harvested manually by paying BNB as GAS fees for each transaction. Some farms have deposit fees of 2% to enter while some are free. Since these farms require you to stake LP Tokens only, there is a risk of impermanent loss in case there is a change in the asset prices.
- Dens: Unlike farms, you can simply stake your single assets like CUB inside the dens. No need to club two tokens together. Earlier there were other DENs like ETH, DOT, and BTCB but they have been discontinued now. DENs are resistant to impermanent loss since you are required to stake only a single asset. APR in DENs is generally lower than FARMs.
- Kingdoms: Kingdoms were released recently as an enhancement to the current farms and dens. The main feature of the Kingdoms is that you don't need to manually harvest your yield. For example, if you are in the CUB Kingdom, then your CUB rewards will automatically get reinvested in your original position. Similarly, if you are in the BNB-BUSD kingdom, the cub rewards will split into equal parts and used to buy BNB-BUSD LP Tokens which are automatically reinvested. All farms and dens will eventually transition into Kingdoms in the future to provide more sustainable yields.
What Is The LeoBridge?
LeoBridge is one of a kind app within Cub Finance to perform seamless cross-chain swaps between Ethereum (ETH) and Binance Smart Chain (BSC). The below infographic would help you visualize how it works:
It's pretty simple, just enter the amount and type of Ethereum asset you need to convert to BSC asset and connect your Ethereum wallet to hit swap. GAS fees on the Ethereum side will be applied in this case!
One of the core values of LeoFinance & Cub Finance is interoperability. In the future, more blockchains like Polygon, Hive, and others will be connected to perform swaps on both sides. Every swap will bring in the 0.25% swap fee and burn both CUB and bLEO.
CUB Finance Initial DEX Offering (IDO) Launchpad
As an alternative to ICO (Initial Coin Offering) and IEO (Initial Exchange Offering), IDO (Initial DEX Offering) is becoming very popular due to the increased demand for DeFi opportunities inside the crypto sphere. One can easily crowdfund their projects in a decentralized manner through a liquidity DEX.
Benefits of IDO:
- It's a transparent and fair model to launch a coin or token.
- Provides immediate liquidity to the investors.
- Users can quickly trade their existing crypto assets into a new asset
- It's a low-cost model for fundraising
If you want to know more about IDOs, please check out this presentation I made recently. Cub Finance provides IDO launch services through its launchpad where any other project can easily crowdfund through the platform. The first IDO was launched with CAKEPOP, a reflection token which gives out CAKE Dividends for holding a min of 200K $CAKEPOP Tokens. CAKEPOP IDO was a success, fully funded via CUB-BUSD LP. $125k worth of CUBs were burned and $125K worth of BUSD was raised by CAKEPOP. With each IDO there is a plan to burn a particular supply of $CUB and in the subsequent ones, instead of LPs, a 100% $CUB deposit will be accepted from the investors. Full details can be found in the latest update by Leo Finance Team (@leofinance).
Not financial advice. For infotainment purposes only.
This article was originally posted on LeoFinance.io