PolyCUB is Self-Equalizing

Welcome to a new day! How has the month of July treated you both on the hive blockchain and in real life. Hope there's no regrets for you in this month of July as we get closer to the end of the month. Remember you can grab a ticket and accommodation for the upcoming HiveFest in September.

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That's by the way, our focus for today's post is centered on how PolyCUB can balance itself during market volatility and highs to remain ever productive to holders of PolyCUB, xPolyCub and vexPolyCub.

With vexPC surpassing a 100k xPolyCub stake, it means that the vexPolyCub platform needs at least $6,000 every month to meet up with the fixed 20% APY in order to pay vexPolyCub holders.

It should be noted that what PolyCUB needs at this moment isn't just to receive more xPolyCub locked into vexPolyCub, but a strategy to meet up with the demands of the high APY fixed for the next two years.

In order to attain the goal of a fixed 20% APY, PolyCUB needs to be flexible or self-equalizing in the market.

As the POLYCUB price goes up, the amount of POLYCUB purchased from the market (in terms of tokens) decreases while the amount of $$ needed to purchase POLYCUB increases.
As the POLYCUB price goes down, the amount of POLYCUB purchased from the market (in terms of tokens) increases.Source

It's very clear that the LeoFinance ecosystem doesn't control the crypto market, but can develop strategies on how her farming platforms can survive during market volatility.

With vexPolyCub locking over 40% of the total xPolyCub for 2 years, it's easier to control what happens within the PolyCUB hemisphere. What this means is that the PolyCUB protocol will decide the amount of PolyCUB to buyback during the changing trends of the market, that's why it's started above that as price goes up the amount of PolyCUB to purchase for the vexPC buyback will decrease and as price goes down, the purchase will increase.

Both ways have just one intention, to reduce a reasonable amount of PolyCUB from the existing liquid supply and gather them to the protocol. Once the protocol has a total control of the amount of liquid PolyCUB in the market, then it'll decision the price at which PolyCUB will be sold in the future.

Hope you enjoyed reading my post, I'll like to see you in my next post.

Thanks.

Posted Using LeoFinance Beta



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