Comment on page
Polygon's Most Sustainable DeFi Platform With Multi-Token Bridging, Curve-Style Staking, Governance DAO, Protocol Liquidity and POLYCUB-Collateralized Lending
PolyCUB is a staking platform that provides a safe and easy way for DeFi users to discover yield and earn on the Polygon Network.
PolyCUB is not your average Yield platform. Our focus in building PolyCUB is to create safe, reliable and growing income streams.
The #1 problem in the DeFi industry is the advent of unsustainable yield farming platforms. All of these platforms use high inflation to pay yield which has created an industry dynamic of users jumping from platform to platform to yield chase the next 1,000% APR.
Our goal with POLYCUB is to build something different. We're building a long-term yield platform that is focused on safe, reliable and growing cash flow for our Web3 Ecosystem and the users on it.
We're doing this through a combination of deep utility and intense scarcity. POLYCUB is designed to be a utility token at its core with the primary utility being control over the yield dynamics of the platform.
Owning more POLYCUB gives you more power to determine the flow of rewards for the various yield vaults on the platform.
The other major utility of POLYCUB is its use as the base asset in our vaults. Using POLYCUB as the settlement asset against all the major vault pairs is a feature inspired by a DeFi platform called Thorchain.
PolyCUB as the settlement asset creates a massive form of utility for the asset. Users who LP POLYCUB are providing liquidity to the PolyCUB ecosystem while also earning astronomically high trading fee APY through the constant arbitrage between all the various asset pairings with POLYCUB. As of this writing, there are 4 different POLYCUB-paired asset vaults.
The majority of vaults on PolyCUB - and the ones who gain the largest multipliers - are base-paired against POLYCUB. This means that as the platform grows, the liquidity in these vaults grows and thus, the liquidity for POLYCUB itself - creating a self-perpetuating economy of utility, scarcity and liquidity.
Deeper liquidity = greater onramp and offramp potential. It also leads to less volatility for POLYCUB as an asset. When building a platform that is centered around long-term, sustainable and reliably growing income streams, it's vital to lower volatility and create a large degree of reliability around the base asset. Our goal is to dampen volatility through scarcity and large-scale liquidity relative to the total market cap of POLYCUB.
As of 6/20/22, the total liquidity of POLYCUB-paired vaults is $414,000 USD while the total market cap of POLYCUB is $950,000. That's ~43% liquidity / market cap ratio which is healthy. Our goal is to increase this ratio which means creating a highly liquid marketplace to buy and sell POLYCUB.
At the core of PolyCUB is Governance. This is where the vast majority of utility for the POLYCUB token is derived. Users gain Governance Power by staking POLYCUB into xPOLYCUB or by locking xPOLYCUB into vexPOLYCUB to further amplify their Governance Power.
Weekly snapshots (every Friday) are taken on-chain. These snapshots view how much Governance Power backs each vault on PolyCUB. 24 hours after the snapshot, Vault Multipliers are updated to reflect the voting pattern - i.e. if one vault receives the majority of votes, then the yield on that vault is increased. You can read about our Yield Governance system in details in the xPOLYCUB Governance section of these docs.