Calculating Net Gains of PolyCUB Investment - Week 5 💰

The emission rate of PolyCUB token has been decreasing and the dynamics of our initial investment has been changing accordingly. Even though the inital weeks of our investment were too volatile to track, recent history shows that the fluctuation of price settled down.

In the 5th week of our investment, you will clearly see that the price drops and volatility are no longer effective in the price of PolyCUB token. On the other hand, the APR rate of xPolyCUB staking has been doing perfectly fine.

The report of Week 4

Similar to previous weeks, the price of PolyCUB decreased from $0.55 to $0.33 which makes about %40 price drop within a week. Here you can see the results of W4:

The sum:
-$229 from USDC Farm
-$33 from ETH Farm
+$229 from xPolyCUB staking.
Net: -$33 in value.

We can easily calculate that the drop from $0.55 to $0.33 could be hedged to great extent. You can multiply the ratio of the losses and earnings in these examples according to the amount of your initial investment.

The Fifth Week of PolyCUB Investment

There are 2 factors we will highlight this week:

• The price of PolyCUB was nearly the same with last week
• The APR rate of xPolyCUB staking

The Performance of USDC / PolyCUB Farm

The initial investment and the current market value are nearly the same with the previous week (only %1 difference). Since the farming has been done from the first minute of the investment, the performance looks negative due to the price actions. So, the drop in the price is around %68 in W5.

Note: The harvests were added to xPolyCUB staking regularly

The Performance of WETH / PolyCUB Farm

Similar to the performance of USDC/PolyCUB farm, there is only %1-2 difference in the performance of the farm. Last week the drop was %61 while this week it is over %63 in terms of current market value.

Since all the harvests were put into xPolyCUB staking, these negative results were compensated with the staking rewards. Here is the performance of xPolyCUB:

xPolyCUB Staking - The Seat Belt

What I prioritize in the xPolyCUB staking is the amount of PolyCUB that I'm going to receive if I want to turn xPolyCUB into PolyCUB token.

Last week, the number of PolyCUB that I made was 689 (made $229 at PolyCUB = $0.33)
This week, the number of PolyCUB in stake is : 758 thanks to directly re-investing strategy.

37.746 xPolyCUB makes: $236 (when pCUB = $0.31) Although the price of PolyCUB decreased 2 cents, the staking could hedge the fluctuation.

The sum:
-$232 from USDC / PolyCUB farm
-$34 from WETH / PolyCUB farm
+$234 from xPolyCUB staking

It makes -$32 in total.
(It was -$33 in W4)

The Stability ✔

The platform reached stability in terms of the price of token and the number of tokens being claimed by paying %50 penalty.

Before the launch of Bonding & Collaterals, the stability in the price (maybe the dip) is reached to aim higher with useful products. As I always mention, the re-investing in xPolyCUB could hedge the unrealized losses from farms. However, the stability may bring us opportunity to increase our shares in farms to enjoy %120+ APR.

TL;DR

PolyCUB has been performing like a stable coin for a week 😄
The results of this week is not different from W4. While having unrealized losses from PolyCUB farms (around -$266 for ~ $400 investment) and hedging the losses with xPolyCUB (+$234).

It is the first time that we did not experience any significant drop in the price of PolyCUB token. As it is nearly stable, we may acknowledge an accumulation stage before the higher levels can be reach with the help of Bonding mechanism and Collaterals.

Now that the volatility has decreased, how about increasing the liquidity shares in the LPs? I'm going to consider the re-investment strategy to enjoy APR of Farms in Kingdoms.

An interesting week for 💎🐾.

Posted Using LeoFinance ^Beta