PolyCub is a piece of the CUB-connected blockchain projects (so far BSC, ETH L1 and Polygon). In the long run, CUB is planned to be a De-Fi token on several blockchains in which people can securely transfer their digital assets with a community driven crypto enthusiasts such as Fantom and Avalanche.
When we check the platform PolyCub, we can clearly see the differences between CUB Finance on BSC and PolyCUB on Polygon network. CUB Finance was launched when the hype was on BSC projects for a very long time. However, the paradigm has always shifted in crypto ecosystem. For instance, the rise of Avalanche, Solana, Fantom and Polygon pushed projects to operate on these blockchains or second layers.
Obviously, CUB mini-ecosystem, in which we all are stakeholders / owners, by Leo Finance team is taking firm steps to generate value with the blockchain services. As investors and community members, we are trying to support and utilize these great products by the hardworking team.
As of writing, PolyCUB is traded between $1.53 - $1.60.
Even though the price fluctuated between $4.5 - $6 in first 3 days, the investors who made great gains from high APR levels choose to take profit. Since the liquidity level in pools is vulnerable to drop sharply, we witness the lower levels.
Note: The price looks quite cheap for those who are there to be investor for long-term.
Note 2: The price may swing while the TVL in pools are still too low to diminish the price impact from great sum of buy and sell.
The Emission of PolyCUB
The first month is quite profitable for those who keep their stake in the high APR pools. IMHO, the volatility is perfectly normal considering 5 token production per block.
As the emission decreases, the volatility will slowly decrease concurrently.
After the first month, it looks like we have a unique token that will be too scarce to find in the market.
Especially from the 4th month, people will be looking for a single token to pay a couple of bucks if they want to make great returns from xPolyCUB staking and Liquidity Pools
Liquidity in Pools
I think the liquidity is way too low considering POLYCUB - USDC and POLYCUB - WETH Pools.
PolyCUB - USDC farm brings %4,500 APR for the liquidity providers. It makes %12 ROI per day. With a basic calculation, you will get what you give in 10-15 days! Besides, half of the pool is filled with stablecoin. So, there is no risk of losing value.
> Pooled POLYCUB: 87,881
Pooled USDC: 135,906 ($140K)
Considering the $5.5M Total Value Locked in the project, I think the pool needs to double to decrease the price impact risk for the pool.
According to Sushi Swap, every 625 PolyCUB sale may lower the price for %1. If you consider the high return for your investment ( thousands of APR), the price may be decreased due to the low liquidity level in the pools.
A similar case is valid for PolyCUB - WETH liquidity pool.
The APR is %5,000 for PolyCUB - WETH but there is only $250,000 of LP being staked. To be honest, all of the farms are undervalued considering their ROI in 1-2 weeks.
More Liquidity - Less Volatility
I believe the price will find a balance in which the demand and supply meet around $3-5 considering the self-fulfilling services and deflationary nature of the token.
Meanwhile, the xPolyCUB will be the star of the project with no question. However, the liquidity pools are also great tools for anyone that want to invest in De-Fi that is profitable and secure.
Personally I will increase my LP stake in PolyCUB - USDC / WETH gradually to make returns from my investment. Especially these 4 weeks are extremely profitable for 💎🐾
TL;DR
The price of PolyCUB is quite volatile as people made great returns and they are taking profit. As of speaking, we are receiving 5 tokens per block and 4 weeks period of token emission is the best time to make profit.
While xPolyCUB is doing perfect, the liquidity pools PolyCUB - USDC / WETH are still undervalued even though they promise %4,500 - %5,000 APR! Personally, I'll increase my share in the pools to both help our project diminish the volatility and make another income source for myself.
Just imagine when the emission rate decreases each month! PolyCUB is purely unique 🦁