PolyCub Platform: The Future of DeFi and Self-Paying Collateralized Loans!

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“We’re creating a radical shift in the way value is accrued to xPolyCub hodlers.”–Khaleelkazi



With new information released on further plans for the growth and development of the PolyCub platform, one thing that recently sparked more interest to me and I believe a lot more people is a new feature the Leofinance team has been developing in the background.

In today’s post, we explore a bit of how this feature works, the why in terms of the benefits, and the restated importance of the PolyCub platform.


Expectations on the Collateralized Loan Mechanism

In their recently released marketing post, the Leofinance team confirmed that the collateralized loan mechanism is modeled after ThorFi Self-Paying Loans.

The protocol allows users to:

  1. Buy PolyCub
  2. Stake PolyCub into xPolyCub on https://polycub.com/staking
  3. Receive xPolyCb Tokens (representing their LP in the PolyCub vault)
  4. Stake xPolyCub tokens into Collateralized Lending contract and take out an over-collateralized loan in USDC
  5. Loan interest is autonomously paid back via xPolyCub yield (self-paying).

Here are my thoughts below on this proposed new feature to come.

PolyCUB Roadmap _ xPOLYCUB, Bonding and Collateralized Lending.png

Image by Leo Finance


Value Accrual

This means that the xPolyCub staked into the collaterized lending contract will still earn the vault incentives while an investor still has the ability to obtain some loan in USDC. The expectation is that xPolyCub brings about a loan, its vault independently pays loan interest, and most especially reproduces income where the “Self-Paying Loan” feature comes into play.

The interest paid on the loans is sent directly to the Protocol Owned Liquidity (PoL) which makes another tool or instrument for establishing long-term PoL. As an xPolyCub investor or hodler, the value accrual is insane as it keeps coming back to you. It is indeed a win-win situation on all sides.

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Image by FatherFilar From Pixabay


Stability and Growth

Another beautiful thing about the launch and introduction of PolyCub is the focus on long-term growth and stability. Even the way the loan system is set up is such that a percentage of your total holdings can be obtained as a loan as the ratio must be kept under a certain level. This is done to promote a sustainable system.

Also, the ability for the Protocol Liquidity to drive continuous purchasing demand for the PolyCub token while dispersing those tokens to LPs in the platform promotes both growth and stability as extensive bulk of PolyCub would be sent back into the xPolCub vault.


Auditing of Bonding Contract

It is vital to note that the contracts do not directly interact with the Masterchef for PolyCub nor need to be audited by Certik. The key focus was to enable the contracts to stand independently. Hence, they will be implemented during the halvening cycles. This is done when PolyCub’s price has stabilized in order to grant higher security of collateralization ratio - loans.

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Image by Prince David From Unsplash


PolyCub and xPolyCub’s Relevance Reaffirmed

From the benefits of this proposed new feature, it is vivid that hodling PolyCub for as long as whether through farming or purchasing with the right strategy makes you a potential winner in the end.

With the way the team has researched, designed, and developed these features, the platform has a greater shot at immense growth and stability. PolyCub is indeed a unique platform and it is amazing to watch this innovative great mechanism unravel in the coming days.

I know when an innovation like this is introduced, people are scared to hodl and they start to sell which affects the general ecosystem of the platform. I believe it is important to believe in something and work towards its growth however we can because it takes a community to drive this idea for long-term workability and sustainability.


"The lower the price of PC goes, the more the protocol will end up buying through the different pools. Not that we want it to get to the absurd level but if it did, the protocol will sweep up a lot of feed it into xPOLY."
-@taskmaster4450


“As always, do not sleep on this innovation, be an early adopter, let go of FUD, and act on the FOMO.”
@peaq


Till I come your way again…
Thank you for your precious time!
Have an Amazing day!


Contact Details:
Instagram: @pearlquasar_
Discord: peaq#5727
Telegram: Pea_q

Posted Using LeoFinance Beta



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