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The xPOLYCUB DAO allows anyone holding POLYCUB staked as xPOLYCUB to vote on proposals to change platform mechanics and drive yield into different vaults. Modeled after veCRV DAO
xPOLYCUB Governance UI
Governance is an incredibly important feature for PolyCUB. It's one of the core utilities of owning POLYCUB and staking it as xPOLYCUB. The more xPOLYCUB you have, the more voice you have in how the platform mechanics are governed, which vaults earn the most yield, amplifying your personal yield on the platform, etc.
The xPOLYCUB DAO is now in control of certain platform mechanics along with the highly important task of determining which vaults obtain yield.
Weekly Governance snapshots dictate where yield flows on the platform.
The 2nd generation of PolyCUB vaults have 5 value accrual mechanisms for PolyCUB Protocol Owned Liquidity. Compare this to the 1 value accrual mechanism on V1 (Kingdoms) and you can see why we made this radical leap in technology and structural implementation from the original launch of PolyCUB in March 2022.
PolyCUB Vault V1: (Kingdoms)
- insert_kingdom_asset (i.e. WETH-WBTC or Aave Stablecoins) generates management fees (10% of all yield) = value accrual for PolyCUB PoL
PolyCUB Vault V2: (Multi-Token Bridged Assets)
- insert_hive_asset (i.e. pHIVE or pSPS, etc.) - held as 1:1 collateral for the wrapped equivalent - staked on native platform (i.e. HIVE POWER or SPS staking on splinterlands.com) = value accrual for PolyCUB's PoL
- insert_hive_asset 0.25% wrap and unwrap fee = value accrual for PolyCUB's PoL
- insert_hive_asset cross-chain arbitrage = value accrual for PolyCUB's PoL
- insert_hive_asset-POLYCUB = utility for people to buy POLYCUB to LP against their insert_hive_asset = value accrual for PolyCUB's PoL
- insert_hive_asset-POLYCUB holders need to buy more POLYCUB to stake as xPOLYCUB to control governance and drive insert_hive_asset-POLYCUB vault yield higher
Governance comes into play with this last bullet point. All of the V2 vaults start with 0.35x yield and the xPOLYCUB DAO will continuously hold votes to determine which vaults should earn the most yield. It's up to the stakeholders of each vault to buy POLYCUB, stake it as xPOLYCUB and have a voice in determining how much yield their vault gets.
You can imagine a community of people holding a lot of pHIVE, for example, voting up the pHIVE-POLYCUB vault to drive as much yield into it as possible. The more xPOLYCUB stake that community has, the higher they can drive the yield in their vault.
Edit: This played out in real-time for pHIVE shortly after the launch of the xPOLYCUB DAO and Yield Governance Voting. The community voted pHIVE directly to the top and now it is the highest paid vault on the platform.
If another community - say pSPS - sees the pHIVE vault increasing yield and they want to drive more yield into pSPS-POLYCUB, then they can buy POLYCUB, stake it as xPOLYCUB and drive more yield into their vault.
This creates a sort of "Community Wars" feature in the PolyCUB ecosystem where xPOLYCUB is needed for the massive utility of driving more yield into your community's vault.
The Community Wars end up benefiting everyone on the platform as the increased utility for buying and staking POLYCUB into xPOLYCUB drives the price of POLYCUB higher which ultimately drives yields higher across the entire platform (since yield is derived in the USD Value of POLYCUB).