As DeFi users switch between platforms for higher returns, 2.0 protocols become crucial for lasting worth.
Decentralized finance (DeFi) 1st took the globe by storm in 2020. Now, 2 years later, the globe has full-grown to understand many successful DeFi comes. Despite these successes, like all new field, many issues have conjointly arisen.
Consider Bitcoin (BTC), that introduced the globe to cryptocurrencies and blockchain however might solely be used for payments, and its successor, Ethereum (ETH), that opened the globe up to extra technology use cases. Similarly, as DeFi 1.0 caused earning opportunities and liquidity issues with users change between platforms to pursue higher rewards, 2.0 protocols area unit trying to make stable price with a lot of advanced ideas.
Helping to lead off this era is LeoFinance, a team that has been building and managing applications over the past 3 years. Their assortment includes social apps like LeoFinance and LeoMobile (for iOS and Android), each of that exist because the backbone for the team's larger goals.
With the successful build of applications on Binance sensible Chain (BSC), among alternative platforms underneath the team's belt, LeoFinance spent seven months researching consequent wave of solutions, DeFi 2.0, listening of the suburbanized autonomous application (DAO) revolution and platforms like Olympus (OHM). They meant to require their findings, "the key ingredients of success," and apply them to their platform objectives, which, within the words of 1 of their team members, is to "build a property DeFi a pair of.0 Yield Application on the polygonal shape blockchain for our community of diamond paws.”
“Our final ambition with the LeoFinance Web3 scheme is to expand the dimension and depth of our community. dimension means that obtaining new users, and depth means that achieving a lot of and a lot of levels of chance to complement our users and make abundance for our community."
With this mission high of mind, the LeoFinance team has discharged their new app, PolyCUB. PolyCUB aims to enhance tokenomics and mechanics over existing DeFi yield optimizers and open community members' eyes to new opportunities on the polygon blockchain (MATIC).
Guaranteeing sustainability in the long-run
PolyCUB uses Kingdoms, a cross-platform yield farming vault that enables users to earn through Base APY from the native platform and POLYCUB APY.
In this model, long-term earning property is ensured through POLYCUB's underlying deficiency model. The app's token operates equally to Bitcoin therein it's not a medium of exchange. Instead, POLYCUB has price directed toward it, making certain that the required deflationary pressure is being applied in distribution. As a result, xPOLYCUB is right for those going to hold their assets for the future.
In follow, anyone staking POLYCUB as xPOLYCUB in a very single staking pool can hold a forever deflating plus. xPOLYCUB's price against POLYCUB solely gets larger with time (10.71 laptop per xPC at press time). xPOLYCUB acts as a claim on early gathering penalties generated by external capital (TVL) in Kingdoms vaults.
Value is any ensured through the platform's tokenomics distribution. As antecedently mentioned, Kingdoms permit users to stake completely different tokens and earn yield as auto-compound returns, permitting users to extend their earnings with minimal effort. These payouts are split 90/10, ensuring that 100% of takings are redirected to the xPOLYCUB contract.
The platform additionally uses a curve-style harvest penalty method. Users will like better to wait 90 days for their harvests to "unlock" and be claimable, or they will in a flash claim their harvests however pay a 50% early-harvest penalty to xPOLYCUB holders.
This feature is including Protocol closely-held Liquidity that is generated through POLYCUB Bonding and 10% management fee on Kingdoms yield. once combined, these options make sure the value can increase in USD terms over long timeframes, which worth is funneled into the hands of anyone staking xPOLYCUB in an exceedingly means that's nonexistent in DeFi one.0 platforms.
Building the growth mechanics
With a community of thousands of monthly active users internationally, including bloggers, readers and net three.0 users, LeoFinance is currently focusing their efforts on increasing its Web3 system to new blockchains of chance like polygon.
Their app - PolyCUB - utilizes bonding mechanics that are inspired by OHM and coupling them with Curve-style staking with xPOLYCUB to make a property yield optimizer.
By investment their rigorously crafted mechanics, the team believes they're well equipped to drive long-term growth in an industry lacking in long-term thinking.
( Sarah Jansen, Cointelegraph, 2022 )