For Everyone Who Doesn't Understand CubDefi

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(Edited)

What the heck is going on?

We are harvesting.

What are we harvesting?

We are harvesting money. In this specific instance money in the form of CUB.

What is CUB?

Money

How do you harvest CUB?

You press the harvest button.

Is that it?

No, you have to approve the transaction. For that, you have to learn how to use the BSC Blockchain.

What is the BSC Blockchain?

The BSC Blockchain is a completely separate from the hive network

It is a copy of the Ethyreum Network. Kind of like HIVE is a copy of STEEM

Why are we on a different blockchain?

Because we were invited by the LEO team.

The leo team has built a DeFi Platform on the BSC network kind of like they built a blogging platform as a second layer on the HIVE network.

They invited those of us who hold LEO to over, by giving us money.

How did they give us money?

They gave us a token called CUB.

The BSC Network uses a currency called BNB

The Leo Team Built a layer on the BSC Network and that uses CUB

Kind of like:

The HIVE Network uses HIVE

The Leo Team Built an interface on the hive network with its own ecosystem and called it LEO

What can you do with cub?

You can invest it.

You can HODL it in your wallet.

It won't do much there. As CUB rises and falls in value, your investment will rise and fall.

We expect it to rise.

You can park it in something called a DEN

Inside the DEN your CUB will earn a very high interest rate. The APR's are in the hundreds, sometimes thousands. It is yearly APR's but they pay constantly.

To join the DEN, you stake the CUB you currently have

You can put it inside a farm

Inside the farm, you will also make really good APR's.

However, here, your CUB can lose value in more ways than one.

You also have to create a more complicated transaction.

You also need an equal amount of CUB and BNB (or whatever token you are going to farm). So, if you have 30$ USD worth of CUB to invest in a farm, you will also need 30$ USD worth of BNB.

Where does this APR and money come from?

this answer is edited. @organduo gave a clear and concise answer in the comment section

Screenshot 20210320 at 10.59.10 AM.png

What does that mean?

It means that BSC is a blockchain. Blockchains store information in "blocks" each block produced mines the token of the blockchain. CubDefi on the BSC Network Mines CUB. That CUB is split between the Den Parkers and Farmers aka Investors.

Do I have to do anything after I stake the CUB?

Yes.

If you parked it in the den, you can either compound it, or harvest it.

If you compound it, it goes into your stake and makes your stake bigger.

If you harvest it, it goes into your wallet where you can sell it or trade it or let it sit.

If you went for the FARM

You can only harvest it. You can of course make more LP's but there is no "automatically make an LP pair" button. Although I think there should be

It really isn't that simple

It is not.

But it is difficult to figure out what tutorial you need if you don't understand the basic jist of what is going on.

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Where does this APR and money come from?

I guess, its all from trading fees - some loose some gain - the utility of CUB will determine the price - but so far as I understand the only utility is to burn and invest in Leo / CUB - so a token that has goal to burn itself to increase the price.

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Yes, I see that.

However, I keep seeing post after post about "wins" and no posts about losses.

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I don't know @edicted did a post talking about losing between $5K - $10K USD on some of his Farm Vs Den bets.

But you are correct most posts are about Wins.

This is mostly likely because people don't like to talk about loses.

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I did read that.

I also admit that I don't know if I have lost money... I turned up some LP's and don't know how much they are currently worth.

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Very nice summary, and I agree with your last comment.

But it is difficult to figure out what tutorial you need if you don't understand the basic jist of what is going on.

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Thank you. When trying to figure out how to invest my CUB, I didn't ask for help because I didn't know what to ask for help about.

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Me neither. I'm just grateful that @flauwy stepped in, recommended I put it in a DEN and then went above and beyond to help me do so.

This morning I am learning about Stable coins although I'm not sure how I wandered off to that. I was actually reading up on how to add DEC to the pools. Oops! 😂

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LOL!
That’s so clearly the problem posts like your solve. There is so much going on in the crypto space that no one can keep track of it all!

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Last week, every 3 seconds (or 1 block) 3 CUB were minted. This week - only 2 CUB per block. Starting from next Monday we will have only 1 CUB minted per block. These CUB tokens are split to go into all of the farms and dens. Hope I clarified something.

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Thank you. I updated my "I don't know" with a screenshot of your answer and added another question.

I appreciate the help :)

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Great explanation. Even after reading tons of posts and staking my CUB in the DEN I didn't realise that

The leo team has built a DeFi Platform on the BSC network

I thought it was built on Hive. 😂

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It is a lot of information right?

Especially because I thought that we could build DeFi on HIVE, so why did we go to BSC?

Because bridges....

That's why they are going to build a bridge from ETH to BSC next.

I edited my answer since you read it. It explains where the APR is coming from.

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I edited my answer since you read it. It explains where the APR is coming from.

Will have a reread as I was just wondering that myself. 😁

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The new minted coins are split between the investors.

Also, for the farms, anyone who trades, pays tiny fees to be able to trade. Those fees are p[aid to the liquidity providers.

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Nice, simple overview. Like you said, the first step to finding the answers you need is to figure out what questions to ask.

As for where the money is coming from: Cub issues new tokens every time a block is added to the blockchain (every 3 seconds). Just like Bitcoin miners get paid in newly minted Bitcoin whenever a block is added to the blockchain (every 10 minutes in BTC's case), Cub stakeholders in the Den and the holders of things in the liquidity pools get a piece of those newly created Cub every 3 seconds. That is how you are getting paid. The higher the percentage of the pool you own, the more Cub you will get every 3 seconds.

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Yes! Thank you.

So, in a way, each CUB is like a node? Yes? Or, is each CUB like HivePower?

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Your Q&A is straightforward and easy
to go through.
#CUB Finance is not the first so this
system has been gaining steam for almost a year.
The good part with #cub, we have something in house
we can rely on and start from the beginning.
#Leofinance is the community and team behind this project.

!BEER

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Good basic tutorial for people without going into the whole "where does the value come from??"

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Thank you.

Where does the value come from is a whole different beast.

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I am new to leo but I do not understand what is the business model? Is it just buying cub or leo and then investing it? is there a real business behind it?
If I just buy the coins without understanding the business model, then it appears that crypto really is an elaborate Ponzi scheme as detractors would like to describe crypto in general.

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Yes, you can buy cub and invest it.

Yes you can buy LEO and invest it. You can also earn LEO in different ways. One of them is commenting on the ecosystem.

For example I am "upvoting" your comment right now, because of how much LEO I have invested, my upvote is worth roughly a 0.25USD, in about 7 days you will see the payout in your wallet.

If you are not comfortable buying the coins until you understand the model, that is fine. Start by reading articles on here and commenting on them. You will start understanding more, and start earning LEO and when you start seeing your wallet grow you will be able to decide if you want to put FIAT in there to make it grow faster.

Welcome and I hope you find your time here profitable.

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It’s more than just pressing a button though right? People have to put up their own money for liquidity right? So people are risking their stash hoping the code doesn’t break, also hoping no one can turn the chain off or modify it.

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It is more than pressing a button.

I put up my own money to get the ball rolling, because BSC is not free like HIVE and you have to pay for transactions.

The transactions are very inexpensive, so you "had" to put up less than 1USD to get started.

As far as putting up your own money for liquidity: if you are counting the airdropped CUB, as your own money, which it is, then yes. If you are thinking that you have to match the CUB that you were airdropped with money from outside the CUB (BSC) ecosystem, then no.

Yes, I am risking my stash.

Yes it seems like a bigger risk than other crypto investments.

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If you can do all that with only your free tokens and nothing else is needed then why not, cant really lose if you starting off with free money.

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