RE: PolyCUB Mechanics Spotlight | Protocol-Controlled Value

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It's different from burning in two ways, as far as I understand it so far:

  • the PCV liquidity generates yields which are reinvested and keeps growing PCV, while burned tokens are excluded from circulation (something relatively similar to what will happen on the SPK Network, I believe, with the locked Hive from their token sales)
  • this protocol owned liquidity is pooled and participates in the overall liquidity - deepening it - so it facilitates larger swaps between tokens without significant slippages, especially where POLYCUB is one of the tokens in the pool, like in POLYCUB-USDC and POLYCUB-WETH.

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Thanks. Hmm, so something like a treasury (an account with no keys) that performs useful actions with the tokens but which tokens cannot be withdrawn from? I'm not sure though how it deepens the liquidity of the token if people cannot buy those tokens from there.

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I'm not sure though how it deepens the liquidity of the token if people cannot buy those tokens from there.

They can... If the liquidity is pooled it is for sale (when people perform swaps). The idea is to have a growing liquidity that will never be removed from the pools. This ensures there's gradually enough guaranteed liquidity in the pool for larger swaps and at low slippage rates.

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