PolyCUB: DeFi 2.0 Meets Yield Optimization on the Polygon Network
The LeoFinance team did it again. For over 3 years they’ve managed applications in the blockchain such as https://leofinance.io. The social apps like LeoFinance and their Web3 Mobile App: LeoMobile (IOS and Android) are the backbone of their project.
As a Web3 Ecosystem driven by continuous evolution and expansion within the crypto industry, LeoFinance’s purpose is to create opportunities for their users and expanding the width and depth of their community, one that is made up of thousands of monthly active users from all over the globe.
March 5th, 2022, marked the genesis of LeoFinance’s next revolutionary app in their suite of tools, applications and opportunities for their users: https://polycub.com.
After successfully building other DeFi apps on the Binance Smart Chain, it took LeoFinance 7 months of research within the new wave of DeFi, learning from the successes of platforms like OHM and the DAO revolution, as well as identifying the key ingredients of the success of other projects, and the result was what it clearly is the next evolution of DeFi yield optimizers.
The goal was to build a sustainable base on the Polygon blockchain for our community. The ultimate ambition with the LeoFinance Web3 Ecosystem is to expand the width and depth of the community. Width means getting new users and depth means achieving more and more levels of opportunity to enrich our users and create abundance for our community.
PolyCUB achieves both: Releasing a new app on the Polygon network with radically improved tokenomics and mechanics over other DeFi yield optimizers provides width; Releasing the app with our community, keeping them in the loop with our developments and also opening their eyes to a whole new set of opportunities when they bridge to the Polygon blockchain provides depth.
PolyCUB Kingdoms are a vault mechanism inspired by other Yield Optimizers like Autofarm.
Kingdoms are cross-platform yield farming vaults. Users LP assets on platforms like Sushiswap or Curve and then they can stake those LP tokens into Kingdoms to earn 2 forms of yield:
- Base APY from the native LP platform (i.e. Sushi rewards)
- POLYCUB APY
Kingdoms autocompound #1 (Base APY) into the base asset pair that a user LP’d. For instance, a user who deposited WETH-WBTC earns their standard Base APY which is autocompounded into their WETH-WBTC holdings. On top of that, they are paid out with harvestable POLYCUB rewards as well. This is how such APY are achieved.
PolyCUB Bonding and Protocol Owned Liquidity
There is a PolyCUB treasury which holds assets that it earns from two mechanics:
- PolyCUB Bonding (inspired by OHM)
- PolyCUB Kingdoms (10% management fee on Kingdoms yield)
These two mechanics drive liquidity into the protocol owned liquidity (PoL) treasury. The treasury stakes these assets to earn yield and autocompound itself. When inflation on POLYCUB ends in a few months, the PoL treasury will begin paying yield to all LPs on the platform by purchasing POLYCUB on the open market and distributing those POLYCUBs as APY.
Between this and other mechanics like xPOLYCUB staking, the POLYCUB token is designed to flip deflationary in the long run as POLYCUB emissions have a fixed end date (when supply reaches ~8-9M tokens) and LP Rewards are paid out via PoL yield purchasing POLYCUB and distributing it to LPs.
At the core of PolyCUB is the xPOLYCUB staking mechanism:
Staking POLYCUB into xPOLYCUB provides various levels of rewards. You earn from two mechanics:
- You earn POLYCUB in the form of inflationary rewards – like all other vaults. This is the displayed “932% APY” figure in the screenshot above
- You also earn POLYCUB from Early Harvesting Penalties – this mechanic is pulled from platforms like Ellipsis and Curve. Users who harvest rewards on all vaults (with the only exception to harvesting penalties being the xPOLYCUB staking vault, which has 0% penalties). There is a 90 day cooldown on all harvests. Users can decide to circumvent this 90 day cooldown and unlock their POLYCUB harvests instantaneously. If they do this, then they pay a 50% penalty on those rewards and the entire penalty is paid out equally to all xPOLYCUB stakers
With these mechanics in mind, there is a PC / xPC ratio. This is designed in a true “number always go up” fashion. The ratio of POLYCUB / xPOLYCUB is how stakers in this vault earn rewards. The rewards from both of the above mechanics are paid to the vault autonomously and xPOLYCUB tokens are essentially a “Claim Token” on an equivalent share in that total rewards pool.
When a user exits the xPOLYCUB pool, they trade their xPOLYCUB tokens back to the protocol in exchange for the current ratio of POLYCUB tokens.
LeoFinance’s community wanted a “forever vault” where the number always goes up. A vault where the diamond paws (the community’s version of diamond hands) could deposit POLYCUB and know that tomorrow or 2 years from now they could always withdraw more POLYCUB and bolster their liquidity portfolio.
PolyCUB Token Emissions: Designed to Go Deflationary
PolyCUB is the first truly deflationary Yield Optimizer platform, and it is the result of 7 months of research, Monte Carlo simulations and development work.
Each week after launch, the emissions rate drops by 1 token per block. After that, every subsequent month after launch, the emissions rate is halvened (a hyper accelerated version of BTC halvings) until the emissions rate stops completely a few months from today.
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