PolyCUB: DeFi 2.0 Meets Yield Optimization on the Polygon Network

almost 3 years ago

Hey everyone! Our team has been working closely with Cointelegraph, Coindesk and a number of news outlets to spread the word about PolyCUB. Just 3 days into our launch and Kingdoms TVL is climbing far faster than our expectaitons.

With that in mind, we haven't even begun the massive PR run that we've been working on for the past several weeks. Between Podcast appearances and a massive round of Press Releases we've prepared, this is going to be a jam-packed week of marketing for https://polycub.com.

What you're about to read is a version of the press release that we've handed to a few outlets that have asked us for one about PolyCUB.com. We also wanted to publish it here on LeoFinance so that YOU, the community of 🦁s could also go out and spread the word with a one-document press release to share to the world.

As @taskmaster4450 frequently talks about - we are the key to marketing this platform and all of the apps within the LeoFinance Web3 Ecosystem. Take this press release and share it far and wide. Use it to guide your own posts and write about PolyCUB.com. Share it with a friend. Share it on Twitter. Share it on Facebook. Anywhere and everywhere that you have an audience - let's bring the world to PolyCUB: the most innovative DeFi 2.0 Yield Optimizer ever built!

The LeoFinance Team has been building and managing applications in the blockchain space for over 3 years now. We started by building social applications - like https://leofinance.io - and have continued that work. The social apps like LeoFinance and our Web3 Mobile App: LeoMobile (IOS and Android) are the backbone of our project.

LeoFinance outlines its vision as being a Web3 Ecosystem that is set on continuous evolution and expansion within the crypto industry. Our driving purpose is creating opportunity for our users and expanding the width and depth of our community.

Our community is made up of thousands of monthly active users from all over the globe. One of the many things we have in common is a love for Decentralized Finance and every major innovation happening on the bleeding edge of the cryptocurrency industry.

On March 5th, 2022, LeoFinance set out on a new evolution. Creating the next revolutionary app in our suite of tools, applications and opportunities for our users: https://polycub.com.

PolyCUB is what we consider to be the next evolution of DeFi yield optimizers. After successfully building other DeFi apps on the Binance Smart Chain and other platforms, we spent the past 7 months researching the newest wave of DeFi. What took place in recent months was the advent of platforms like OHM and the DAO revolution. We also saw Curve continue to hold strong as one of the oldest DeFi platforms in the whole industry.

With all of these different platforms to study, our team dove deep on the space. We wanted to pull research on all these platforms and find out what the key ingredients of success were for them.

Once we pulled out these ingredients, we compiled vast quantities of spreadsheets and data sets in our databases. We ran a thousand Monte Carlo simulations to figure out how to build a sustainable DeFi platform.

Our goal? Build a sustainable base on the Polygon blockchain for our community. Our ultimate ambition with the LeoFinance Web3 Ecosystem is to expand the width and depth of our 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.

With PolyCUB, we managed to achieve both of these: creating width by releasing a new app on the Polygon network with radically improved tokenomics and mechanics over other DeFi yield optimizers. Creating depth by releasing the app to 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.

Polygon is an incredible blockchain and we believe that it and the MATIC token have incredible long-term potential. For this and many other reasons, our goal with PolyCub.com has been to bridge our community ecosystem to Polygon.

How is PolyCUB Sustainable?

PolyCUB Kingdoms

PolyCUB Kingdoms are a vault mechanism that we built using inspiration from 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 or Curve rewards)
POLYCUB APY

As you can see in the above screenshot, APYs are extremely high at the moment (most over 600% APY). This is because the platform launched just 3 days ago. There's already $4M in TVL on Kingdoms alone and this number continues to grow with each passing hour.

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 the 769.50% APY is 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.

xPOLYCUB Staking

PolyCUB is one of the most interesting DeFi Yield Optimizers we've ever seen. We pulled on the top platforms in the industry to design the mechanics that you see governing the platform.

At the core of PolyCUB is the xPOLYCUB staking mechanism:

Staking POLYCUB into xPOLYCUB provides a immense level of rewards. You earn from two mechanics:

You earn POLYCUB in the form of inflationary rewards - like all other vaults. This is the displayed "2,900% 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.

Our community asked us to design a "forever vault" where the number always goes up. A vault where the diamond paws (our 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

As described above, we set out to create the first-ever, truly deflationary Yield Optimizer platform. PolyCUB is the result of 7 months of research, Monte Carlo simulations and development work.

Right now (just days after PolyCub.com launched), the emissions rate is 5 POLYCUB / block on the Polygon blockchain.

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 halvenings) until the emissions rate stops completely a few months from today.

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