The Dynamic of Impermanent Loss and Deploying Capital into the CUB Kingdom

Since July of 2021, we began developing PolyCUB and alongside it, we've built out a massive overhaul for the Cub platform as well.

Many of the contracts we've built for PolyCUB have led to the simultaneous development of similar contracts for CUB.

The future is abundantly clear for us and as we wrap up development of PolyCUB and prepare for launch, CUB is about to implement many of the changes that we've built and battle-tested in the background for the past several months.

Incentive Pendulum

One of the many changes that will go live for CUB in the days that precede the release of PolyCUB is the incentive pendulum mechanism.

This mechanism swings rewards in favor of underutilized opportunities in the Kingdoms vs. the Farms.

The CUB Kingdom is severely under-rewarded as compared to the CUB-BUSD and CUB-BNB farms.

With the launch of PolyCUB imminent, we figured this is a great time to implement the newest feature on CubFinance.

This feature will encourage capital to flow to the CUB Kingdom by an auto-rebalance of the APYs in the CUB Single Kingdom vs. the CUB-BUSD and CUB-BNB Farms.

With this pendulum in place right when PolyCUB launches, we expect it to exponentialize the price impact of release PolyCUB and the 60 day airdrop mechanism that we built to emulate the launch of SPS for Splinterlands.

Things are getting very interesting as we approach the imminent launch of PolyCUB!

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