Interesting Cub Week

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During the week-end practically the entire crypto market flash crashed based on some half-backed information and most likely some manipulation.

Besides the weak hands, in this movement were pushed the investors with high-leverage long exposure, who were forced to close down their positions and sell to pay off their margin calls. Which is why this type of trading is sometimes very risky, even if the profits are leveraged as well.

My cub week started off very promising. But the flash crash at the end of the week turned it into an interesting one.

I'm not saying a bad one, because it wasn't. But it is the first week since I track these stats since I have a negative weekly ROI.

What is interesting about that?

A few things:

  • we can see how CUB handled it
  • we can see how our Cub portfolio handled a flash crash in the market
  • we can see how the Cub investments went through the flash crash compared to the underlying assets used to invest initially

Let's take them one by one.

CUB started the week at $3.65 and ended it at $3.56, but it went above $3.8 at its high point before the flash crash and then down to $3.2. Considering bitcoin went down more than 15% intraday, a flash crash of less than 20% for CUB followed by a steady increase afterwards is a great sign, in my opinion.

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At the same time, BNB went from $606 toward the beginning of the week slowly down, then flash crashed to $437 from where it recovered to $508. Twice more volatile than CUB on the downside, but it's true coming after a significant increase before that.

Interesting to discover that in the CUB-BNB farm, CUB was more of an anchor than BNB, as new as it is.

So, last week, my Cub portfolio went down by 5.83%. Want to know how the originally invested assets would have performed during the same week? -25.35%.

Very interesting discovery! Without having a Cub portfolio oriented for safety, it performed significantly better during this flash crash than the assets originally invested would have.

The overall ROI is still impressive: 74%.

This week I added most of the harvested rewards into the CUB den. Why? I'm waiting for the kingdoms... A nice opportunity there, especially since there might be another 24 hours fee waiver.

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7 comments
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It seems cub is quite resilient, and hovering between the $3-$4 mark despite all the large swings in the cryptoworld in the last few days.

seems like the high yield on farms is providing some downside protection in the underlying assets values, but be wary of impermanent loss when you are in volatile markets, those arbitragers getting in and out of pools at the right time leave the pools to suffer the losses.

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Yes, I am aware of it and even keep track of it too. But to be honest, I'm not very worried. I'm comfortable ending up with more (or less) of any coin I have in any farm I'm involved in.

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I prefer more.. just saying:) but agree if the price is going up who cares

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That means the price is dropping or the price of the other coin in the pool is growing faster.

But I understand what you mean. It's always nice to have "more". :)

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there might be another 24 hours fee waiver.

I need to get ahead of the game this time and think about how much, if any, I want to invest in Kingdoms.

Are the risks greater than in the other farms or is that something that can't be known? I suppose a better question would be what are the risks with Kingdoms as opposed to other farms and the DEN?

Might make a nice post for those of us still learning this stuff. 😁

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(Edited)

There are still some unknowns about kingdoms.

They basically offer exposure to other platforms than CubFinance, like PancakeSwap, while compounding the rewards you get there to the base asset of the kingdom. There will also be small CUB rewards, so you earn from both platforms at the same time.

Kingdoms will look more like dens. But let's say we talk about the BTCB kingdom. It will probably generate rewards on the PancakeSwap as CAKE (the equivalent of CUB over there) - this will be automatically, you most likely won't have to do a thing besides adding BTCB in the kingdom. These CAKE rewards will be automatically swapped to BTCB and compounded with your BTCB kingdom position on CubFinance. For that you'll pay a small fee.

On top of that, you'll be able to harvest CUB rewards on CubFinance, the usual way, on the Kingdoms page. That's why they are called composable rewards, because you get at least two different rewards for the same asset.

I don't know what the composed APR will be, but they will likely be better than dens. Plus, you get rewards in the base asset (such as bitcoin, ethereum, etc.), plus the CUB rewards.

EDIT: About risks... Not sure. Waiting for more details from Khal when they are launched about how these smart contract work.

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Thanks for the extra information. I'll be interested to hear what the risks are once Khal gives us more details, especially in relation to the Cub Farms.

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