Some Tips for Cub Finance

in LeoFinance2 months ago

I've collected a series of tips in my two days of using Cub Finance and Binance Smart Chain. I decided to write a post to share them. We might even exchange tips and tricks this way.

This will most likely look better with bullet points, so that's how I'll present them.

  • on Cub Finance you have farms and dens, where you can engage in decentralized finance and earn your part of the generated CUB inflation.
  • the difference between farms and dens is that farms has pairs of coins and you will add liquidity to the pool before being able to farm it, while dens have one coin which you stake.
  • On dens there is no unstaking period, it's immediate. There is however a 4% fee on deposit for all dens except for the CUB den, which is feeless. The fees are used to buy and burn mostly CUB but also some bLeo (80%-20% proportion).
  • Dens also don't have impermanent loss, unlike farms, but also have lower APRs in most cases.
  • Both dens and farms have multipliers associated with them. From 1x to 40x, currently.
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    These multipliers control the inflation flow. Here's an example. If in two farms (or dens, or a farm and a den) there is the same liquidity, say $300,000, and farm A has a 40x multiplier while farm B has a 2x multiplier, you will get 20x more CUB from farm A than from farm B if you have the same amount of liquidity locked in both farms. Same explanation holds for dens, except we are talking about staked amounts instead of locked liquidity. Beware of deposit fees and impermanent loss when you make your choices!
  • Inflation and emission rates. Note that in the first week after launch (ending on March 15th) the emission rate is triple, in the second week (from March 15th to March 22nd) emission rate is double and then it is 'normal', 1 token / block (28.8k tokens per day), until another decision is made. That means that more CUB can be earned now in the early days, if that's what you're looking for.
  • It's a mistake to farm a pool or stake to a den that has a deposit fee and remove liquidity from that pool or unstake from the den before you earn at least the fee amount back. Remember the rewards come as CUB, you will have to exchange some to the coins you were taken a deposit fee from, to recover the original coin(s) full amount.
  • don't harvest to often; despite BSC fees being much lower than ETH gas fees, they add up. I harvest twice a day now: in the morning and in the evening. Don't use "Harvest all" button on the home page, unless you haven't harvested in a few days or longer. Otherwise, it will harvest all farms and dens, even if it only has a few fractions of a CUB. And all these operations cost.
  • if you stake to a den, it automatically harvests, so you might not need to harvest it before that
  • 'compound' on the CUB den 'moves' the unharvested CUB to staked. That's one operation, instead of harvest+stake.

Also, have a plan. What are you trying to do? Harvest as much CUB as possible early on? Get a nice APY on a different coin? Go the safe route or risk a lot for huge potential returns? In each case you might need a different approach.

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Thanks for the tips.

When you say

if you stake to a den, it automatically harvests

where does that show up? Is that the amount under 'CUB earned'?

And, what are the + and - signs for to the right of the CUB staked amount?

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Is that the amount under 'CUB earned'?

You can see that on the home page in 'CUB in Wallet'.

When you harvest from a den or farm, that's where you see it.

Or you can see it in your Metamask, for the CUB token. But you have to add CUB token to the Metamask, it doesn't get added automatically. Maybe I'll make a more in-depth post about that as well, for people who need it.

'CUB earned' is what you have earned but not harvested yet.

what are the + and - signs for to the right of the CUB staked amount?

With '+' you stake more, with '-' you unstake an amount.

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OK. So I'm only in the CUB den and the amount earned there and the amount on the home page are the same. But on the home page it says 'CUB to harvest' so I'm confused. Is it or is it not harvested? 😕

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Ok, so to harvest the CUB, you'll have to click on the 'Harvest' button which is on the CUB den.(* see below) But don't harvest too often because there are fees. Do you once now so you'll see how it works, then you establish a schedule based on how much you CUB you earn daily.

*) You can do what I said and deleted up there, but then you'd have to stake it afterwards. A better option would be to click on 'compound' button on the CUB den and it will be automatically staked (well, you have to approve and pay the fee with Metamask, kind of like with Keychain)

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Excellent. Got it. Thank you!

I'll wait to make back the initial fees, then click on 'compound' and see how much that costs and then establish a schedule from there.

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I'll wait to make back the initial fees

If you want to sell some CUB to cover for fees, you'll have to use Harvest instead of Compound. Because Harvest puts CUB in your liquid wallet, while Compound automatically stakes it.

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Ah. No sorry. I should have said I'll wait to make back the equivalent of the fees. 😁

But you've bought up another question . . . if a bit further down the road I want to swap some CUB for BNB (or whatever it is I've forgotten already 😂) would I need to harvest first in order to do that? Is that a cost efficient way to get "BNB" to pay the fees since I don't have a Binance account?

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would I need to harvest first in order to do that?

Yes.

Is that a cost efficient way to get "BNB" to pay the fees since I don't have a Binance account?

Once you are on BSC, you practically don't need a binance account. Yes, selling CUB is a way to cover for BNB fees.

Here you should consider these factors:

  1. You can optimize BNB fees by doing fewer operations.
  2. You can try to sell CUB "high", to get more out of it.

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You just summarized what's important, so I'm reblogging it!

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Really appreciate it Erika!

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You make a good detective :)

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Hmm, I used to do research. Does that count as detective work? :D

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Of course it does! :)

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I’m not sure I understand... I am in the Cub Den (10x) ... I don’t need to harvest ?

Also ... I clicked on Compund, paid a BNB fee , and nothing happened. How do I know if I am compounding ? Also I have harvested twice ... I don’t need to do that ??

if you stake to a den, it automatically harvests, so you might not need to harvest it before that
'compound' on the CUB den 'moves' the unharvested CUB to staked. That's one operation, instead of harvest+stake.

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if you stake to a den, it automatically harvests, so you might not need to harvest it before that

Maybe I should have explained this bullet point more.

When you click the '+' button to stake more (and I assume also the '-' button to unstake some), before staking/unstaking, the existing rewards that haven't been harvested yet are automatically harvested and kept as liquid CUB until the next time you decide to stake them (or whatever you want to do with them, like swap them). In this case you don't need to click on the Harvest button (you save one operation, pay less fees).

One important note here: this tip makes sense if you have coins in more than one den/farm. If you only have CUB in the CUB den, then simply ignore it, as you cannot make use of it.

Also ... I clicked on Compund, paid a BNB fee , and nothing happened. How do I know if I am compounding ?

Have you checked the staked amount in the CUB den before and after? The staked amount should have increased with the amount that wasn't harvested. That's what you compound to the existing stake.

If, for example, you have 0.5 CUB earned rewards unharvested and 10.0 CUB staked, after compounding you'll have 0 earned rewards and 10.5 staked CUB.

I just tried it again myself to make sure it still works, and it does.

I don’t need to harvest ?

As I said above, if you use compound, then you don't need to harvest. Because Compound is the same as Harvest + Stake. Otherwise you need to. But if you want to add the harvested amount to the stake, then you'll also need to use the '+' button to stake some/all of the harvested CUB.

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If I will get into CUBfinance I will definitely do that with dens. Farsm are way out of my league.

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Yup, they are simpler to understand. Much like what we have on Hive, only the "rewards" are all in CUB, regardless of the coin you stake in a den.

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Good information here. Thank you

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Thanks for dropping by!

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amazing that you gathered or these important tips! it will help a lot of people!!

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I'll be glad if it helps some people.

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@gadrian hmm those are wonderful tips you have got there

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Thanks.

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you welcome sir

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