PolyCUB Improvement Proposals (PIPs)
Vote on Key Proposals to Govern the PolyCUB Economy
- Flip POLYCUB Deflationary but Continue Deploying APYs That Facilitate Growth
- Focus Once Again on Attracting MTB Liquidity (pHBD & pHIVE)
- Monthly Reporting on PoL, MTB Growth and Buying Back More POLYCUB Than is Being Distributed As Monthly Rewards
Adapt is likely to be one of our most important PolyCUB Improvement Proposals. We've done extensive research on how PolyCUB has performed. We don't need to tell you that POLYCUB has not done quite as well as we all had hoped. A mixture of the bear market hitting just weeks after POLYCUB launched - seeing most of DeFi drop 95% or more - and the POLYCUB Tokenomics have been the cause of this.
Our ambition is to build a sustainable, reliable and growing yield platform. This ambition has not changed. We've spent a lot of time as a team going back and forth to the drawing board. We truly believe that POLYCUB has a really unique capability as a DeFi platform. Between xPOLYCUB, vexPOLYCUB, Protocol Owned Liquidity and the Multi-Token Bridge, we believe POLYCUB can become a radically sustainable platform.
The price of POLYCUB seems to have bottomed out along with the rest of the DeFi market. Our goal now is returning to growth and finding new ways to leverage that growth.
PIP3 is a proposal that we spent the last 2 months discussing with many of you - community leaders - to try and figure out the best path forward for POLYCUB to continue growing.
At current figures, Protocol Owned Liquidity is larger than the actual POLYCUB market cap. This is a huge disconnect between the market valuation of POLYCUB and the risk-free value (RFV). We are below RFV which means that the Protocol Owned Liquidity is actually larger than the MCAP of POLYCUB. This is bullish but also signals a lack of strength for POLYCUB and 0 speculative interest (in fact, a negative speculative interest).
We believe this is due - in large part - to the halvening schedule. The halvening schedule was intended to be beneficial for the platform but after seeing it in action, we can all see that it is a deteriment to the platform. The reason why is that yields continue to decrease which causes a flee of capital in the Multi-Token Bridge Pools.
You might recall our first POLYCUB Monthly Report in which we discussed MTB revenue. That first month, we generated over $13k in MTB Revenue. That was truly amazing! At that stage before several halvenings occurred, we actually flipped POLYCUB deflationary (More MTB Revenue than actual inflationary pressures).
Our goal with Adapt is to bring us back to a sustainable level and base off from here. At the current POLYCUB Rewards Per Block - 0.0625 - we are well below the earnings of both the Multi-Token Bridge (pHBD & pHIVE) as well as the Protocol Owned Liquidity's Monthly Revenue.
The vote is ultimately up to xPOLYCUB and vexPOLYCUB Hodlers. Our Proposal system was built so that we could adapt and evolve as PolyCUB matured. We've seen a growing concern over the dropping yields and that is leading to less growth for the bridge.
As it stands, the MTB and PoL on their own have the capacity to buyback more POLYCUB than is issued via inflation (@ 0.0625 POLYCUB / block, this is a minuscule amount per month) more than 5-10x over.
We can always release a new PIP to re-evaluate but if you look at CUB's Multi-Token Bridge - which was deployed 60 days ago - it has been performing incredibly well. Showing massive growth and no signs of stopping. As it stands, the CUB MTB is now 4x as large as POLYCUB's.
We believe this is due to the static inflation rate on CUB. It creates predictable APYs which is what LPs want. Unpredictable APYs is the current model of POLYCUB and if we are able to make the inflation rate static at 0.0625 POLYCUB / block, we believe the bridge will once again slowly begin to grow.
Additionally, the PoL is buying POLYCUB with PoL revenue and MTB Revenue and locking it up to vexPOLYCUB hodlers at a higher rate than the inflation. Our goal was to turn POLYCUB into a deflationary token in terms of buyback potential. We've achieved that and any further halvenings simply take away from future MTB Growth.
We urge all xPOLYCUB and vexPOLYCUB hodlers to vote this proposal. We have two options:
- 1.Shift to the Static Inflationary Model @ 0.0625 POLYCUB / Block
- 2.Continue on the halvening path and halven rewards, decreasing APYs
After speaking to many of you, we believe the support lies in growth and bringing back predictable yields like seen on https://cubdefi.com/farms.
The team is backing Proposal #1 but the xPOLYCUB and vexPOLYCUB hodlers have the final say. You all get to decide with your proposal vote, so please cast them before the window closes on October 27th @ 10 PM CST.
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Increase MTB Wrapping Fee - the first PIP is a proposal to increase the Multi-Token Bridge Wrapping Fee.
For the first time, we talked about how much wrapping fee revenue was generated by the PolyCUB MTB Protocol. This wrapping revenue is used to buyback POLYCUB and deploy it into the vexPOLYCUB vault for the 20% fixed APY.
This means that the greater the MTB revenue, the greater the buybacks of POLYCUB. POLYCUB buybacks being deployed into vexPOLYCUB also means that we are effectively removing liquid POLYCUB from the market and depositing it into the vexPOLYCUB vault where it needs to wait until the unlock time has elapsed in order to be withdrawn and either re-staked or sold on the market.
POLYCUB is going to be removed from the liquid supply at a rapid pace each month.
PIP2 aims to increase MTB revenue by increasing the wrapping fees for pHBD, pSPS, pHIVE and pLEO. As of right now, the wrapping fee is 0.25%. The proposal has 3 voting options (as will almost all PIPs):
- 1.Keep it the same (0.25%)
- 2.Increase it to 0.35%
- 3.Increase it to 0.50%
Vote NOW at https://polycub.com/governance. Voting will close on July 22nd, 2022.
Last modified 10mo ago