xPOLYCUB To Polycub Has A Cap

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Same as Polycub has a cap of around 7M, so does PC/xPC!

At the moment there is 129k XPOLYCUB and a 1.5M Polycub in the contract, or around 11.5 ratio.

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This means that in time the ratio will be harder to move as the supply cuts happens each week. After the first month the increase in the ratio will slow down. I expect a ratio around 20 at the end of the month and a cap around 30, but this is a very rough estimate and can be wrong.



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(Edited)

I think it won't cap at 30. It will keep growing forever as the protocol owned liquidity keeps buying PC from the market and distributing a part to the Xpolycub holders + the early fees.
Some people will sell Xpoly making the ratio grow faster and as the ratio grows it becomes more difficult to buy Xpoly... Making it grow more.
It will eventually slow down when the price of polycub starts increasing and the POL won't be able to distribute that much PC but I think it will be higher than 30. Can be wrong

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It will grow at much slower rate....

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Hadn't really thought about it, in that context... now I'll have to go away and do some speculative number crunching!

Then again, maybe I'll just leave that to you and others who understand the entry/exit dynamics and their impact better than I. My original impression was that it would keep growing... but maybe it's just the price, not the ratio that will grow...

=^..^=

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I wonder if with the PolyCUB supply being cut week after week if the price will compensate for the scarcity of the tokens. I think everybody expects that, but will just need to see if enough money will come and stay in this DeFi solution to push it up.

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Yea with less inflation, it needs the price to go up ... otherwise we will se a low apr

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As people take out xpolycub for CUB though wont that ratio backtrack?

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I think not... it would pay the polycub at the current ratio, leaving the exact same ratio for what is left

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