Deflationary PolyCUB is Very Strategic for vexPOLYCUB to Achieve it's Goal of 20% APY for Stakers

avatar

Hurray it's another beautiful day and a time to remain happy with the values created by the LeoFinance ecosystem in most recent times.

image.png

Source

For those that are aware of how PolyCUB is designed, will know that the project operates on a emission halving process that occurs every day, week and month. The emission rate per PolyCUB block as designed by the Polygon network is to reduce by 50% at every halvening period.

image.png

Source

A quick reminder, the first emission halvening took place about 2 weeks after the launch of PolyCUB in early March. As at that period, we had an estimated 6M PolyCUB to be in existence and this emission halvening rate will continue until it goes into extinction.

Anticipate the Biggest PolyCUB Emission Halving in May: Expecting a Whopping -66% Drop (126/369) was the post I published in April about the PolyCUB emission halving rate and how it's deflationary nature will help the entire PolyCUB project to attain it's yield optimizing goal.

image.png

Source

When you look at the above image, you'll see an indication on July emission halving. That indicator predicts the most significant PolyCUB emission halvening that'll occur with more visible evidence in July.

4 days ago, per polygon block the changed from 0.25 to 0.125 bringing us closer to the deflationary nature of PolyCUB.

The level of scarcity of PolyCUB is very important to its growth, when we look at it from a demand and supply standpoint. Remember that scarcity brings about increase in price of the commodity.

How does deflationary PolyCUB affects vexPOLYCUB
One of the strategies that's set aside to generate the fixed 20% APY for stakers of vexPolyCub is through the buybacks of PolyCUB and redirecting the surplus generated from Pol to the vexPolyCub holders.

As PolyCUB becomes scarce and most of the xPolycub liquid now migrated to vexPolyCub, there'll be enough PolyCUB for the protocol to buyback.

It should be noted that the original plan before vexPolyCub came live, is that xPolycub holders will be able to take advantage of the scarcity and cash out big from the imminent price impact, but since majority of the xPolycub liquid has been moved to vexPolyCub, the ball is now on the court of vexPolyCub to buyback PolyCUB remaining PolyCUB in the market for the next two years.

The more PolyCUB buybacks made, the closer we get in generating the 20% APY for the vexPolyCub vault.

It's a nice time having you around my post.

Posted Using LeoFinance Beta



0
0
0.000
4 comments
avatar

Great Post!

!1UP

You can earn passive income by delegation of tribe tokens to "The Cartel"!


Click the banner to join "The Cartel" Discord server to know more!

0
0
0.000