khaleelkazi

@khaleelkazi

How Long-Term Sustainable Emissions Work on PolyCUB | Wen DeFi 2.0? <center> [![](https://ipfs-3speak.b-cdn.net/ipfs/bafybeife4qdkpspc3mahz6sd4neghhxaj7jgkgd4s6qlfsxq4a5r7lvahm/)](https://3speak.tv/watch?v=khaleelkazi/sokmhanz) ▶️ [Watch on 3Speak](https://3speak.tv/watch?v=khaleelkazi/sokmhanz) </center> --- Since the launch of PolyCUB, there has been an endless stream of questions about Protocol Owned Liquidity and sustainable emissions on PolyCUB. The launch was designed to be DeFi 1.0 for the first 2-3 months. Yield is paid via a high emissions rate. That's DeFi 1.0. We're still in that era but we are quickly approaching the next halvening for PolyCUB (around May 5th) which will signify the reduction of POLYCUB block rewards by 50%. When that happens, we'll see new POLYCUBs hitting the market at a much lower rate. What does this really mean? POLYCUB is harder to earn. Yields are more sustainable. DeFi 2.0 starts to kick in as we approach July. That's when yield from emissions are almost non-existent and the yield that's generated on PolyCUB vaults will be derived from Protocol Owned Liquidity. As many know, we've thrown numbers around on the xPOLYCUB staking vault, for example. Saying that yield on xPOLYCUB will always be in the 30% + range. This is built through Protocol Owned Liquidity. We talk about it in more detail in this clip from the LeoFinance Weekly AMA. With the new pHBD-USDC vault, people are wondering how this benefits POLYCUB in the long-run and if we will be able to keep pHBD-USDC yield above 30% in the long-run. pHBD-USDC adds a ton of value to PolyCUB through wrapping revenue and arb revenue which get deposited into the Protocol Owned Liquidity. We're about to see this take off in a massive way as PolyCUB just gained a huge source of revenue for its treasury. &nbsp; https://images.hive.blog/DQmVsxUBNSEttko3J3d7LDXL9BWGYLXLXAs798Z1EPjeUdf/image.png &nbsp; LeoFinance is a blockchain-based Web3 community that builds innovative applications on the Hive, BSC, ETH and Polygon blockchains. Our flagship application: [LeoFinance.io](https://leofinance.io) allows users and creators to engage and share content on the blockchain while earning cryptocurrency rewards. <center> [LeoFinance](https://leofinance.io) | [CubFinance](https://cubdefi.com) | [Hivestats](https://hivestats.io/) | [LeoDex](https://leodex.io/) | [LeoFi](https://leofi.io/) </center> <center> [Delegate HP & Earn 16% APR, Paid Daily. Currently @ 2M HP](https://hivesigner.com/sign/delegateVestingShares?delegator=&delegatee=leo.voter&vesting_shares=1000%20HP)</center> <hr> <center>**LeoMobile Open Beta is Now Live! Join The Fastest Growing Web3 Community:**</center> <center>[IOS](https://testflight.apple.com/join/cskYPK1a) / [Android](https://play.google.com/store/apps/details?id=io.leofi.mobile)</center> &nbsp; https://images.hive.blog/DQmVsxUBNSEttko3J3d7LDXL9BWGYLXLXAs798Z1EPjeUdf/image.png &nbsp; --- ▶️ [3Speak](https://3speak.tv/watch?v=khaleelkazi/sokmhanz) leofinance @khaleelkazi

I actually wasn’t aware of the stabilizer providing that much HBD daily at 1% premium. It’s not great but it is workable. There still remains a few issues with that: 1. If I didn’t even know that was there, how will outside whales figure it out 2. AFAIK this only applies to buying HBD. So there is no off-ramp liquidity - this is one of the main things turning DeFi whales off from buying HBD I would love to push this to the hive community though. There’s an opportunity now to buy a bunch of HBD and wrap it into pHBD to provide liquidity that can solve these issues Posted Using [LeoFinance <sup>Beta</sup>](https://leofinance.io/@khaleelkazi/re-taskmaster4450-3eis8x) hbd @khaleelkazi

That’s great but most DeFi whales will never be able to figure out the internal market. The bidding system to get HBD is highly inefficient. Deep liquidity pools is how these things spread. I’d love to see a lot of HBD being bought 1% premium on the internal market and then deposited into the pHBD pool so DeFi whales can buy in easily and in a way that they understand. No messing with a reverse order book and trying to bid war to get filled on a stable coin Posted Using [LeoFinance <sup>Beta</sup>](https://leofinance.io/@khaleelkazi/re-smooth-7pds1) hbd @khaleelkazi

@khaleelkazi

@khaleelkazi

My Hunt for HBD | Providing HBD Liquidity on pHBD-USDC is The Smartest Thing You Can do to Moon Hive ![image.png](https://images.hive.blog/DQmXS89XwqCYQNcYsJ74FEH5k2vDQRi4q22cii3Y8JNF8fB/image.png) My hunt for HBD started right when the witnesses announced that the fixed-interest rate of HBD was being raised from 12% to 20%. I already knew that we were developing pHBD for PolyCUB but when this was announced, it lit a fire underneath us. As someone who holds 1M+ HIVE, I truly want to see this blockchain flourish. Along with that LeoFinance is built on Hive and what's good for Hive is good for LEO! ICYMI: pHBD is a wrapped version of HBD on the Polygon Network. You can seamlessly wrap and unwrap HBD using https://wleo.io/hbd *note: if you're looking for a super easy, 3 step tutorial on how to do this, [check out this video](https://docs.polycub.com/mechanics/phbd/how-to-wrap-hbd-into-phbd)!* ## Why Everyone on Hive Has an Incentive to Provide pHBD-USDC Liquidity If you're on Hive, you have a deep incentive to provide liquidity on pHBD-USDC. Why? 2 main reasons: 1. pHBD-USDC is vital to the adoption of HBD 2. pHBD-USDC pays a higher APY than native HBD staking ## pHBD-USDC is vital to the adoption of HBD ![image.png](https://images.hive.blog/DQmdHWHjxE86aw6imxHfpgiMnJwzRSyByYDZLRGd28Nzssa/image.png) I run in a lot of different DeFi circles these days. I've been talking to them lately about the MASSIVE opportunity that is HBD. With the HBD savings rate at 20%, these whales are highly motivated to get their hands on HBD and deposit it on the Hive blockchain to earn a 20% fixed interest yield. Many of these whales are currently staked on Anchor using the UST (Terra's Stabelcoin) token to earn 20% fixed yield. This is a ridiculously important opportunity. HBD is one of the oldest stablecoins in the crypto industry and now it is paying a competitive stablecoin yield to every other platform - including the fastest growing stablecoin on the planet (UST). #### Why Aren't the Whales Buying? But ser, why aren't those whales buying and staking a ton of HBD? They can't. Literally - they can't. There is no onramp and offramp liquidity for HBD. The best place to buy it 2 days ago was the internal market where you had to buy in a few hundred dollar increments very quickly or use a bot to try and get a decent price. There is literally no HBD liquidity out there right now. I managed to do an OTC deal to get 100k HBD at a 2% premium. This was the best HBD liquidity source I was able to find and I found it on Twitter. As of ~24 hours ago, the **best place to buy HBD** is now on PolyCUB.com/farms using the pHBD token. You can swap into pHBD using any Polygon-based asset on platforms like [Paraswap](https://app.paraswap.io/#/?network=polygon). Just 24 hours after launching, pHBD-USDC already has $230k in liquidity and it is growing every minute. We need this liquidity pool to reach $5M. I believe that a $5M liquidity pool is the potential critical mass to onboard a bunch of DeFi whales into the HBD stablecoin and get them to either 1. Provide HBD as pHBD-USDC liquidity and further deepen the pool 2. Unwrap pHBD they buy into HBD and stake on-chain for 20% fixed interest yield ## pHBD-USDC pays a higher APY than native HBD staking ![image.png](https://images.hive.blog/DQmWQDaEJtFkAb8SHNESgUQkZquXQq8Tpq1PnFKTnELszpe/image.png) While I love the Hive community and know that many of us can rally behind a cause just for the sole reason of it being good for Hive, I also know that personal incentives matter a lot. In the world of DeFi, incentives are everything. Our goal is to make PolyCUB to HBD what Anchor is to UST. PolyCUB can be the premier platform to stake HBD and earn high yield while people who want more conservative, native HBD yield can stake HBD directly on-chain. Right now, POLYCUB is paying 58% APR (or over 75% APY) for anyone staking pHBD-USDC liquidity in the Vault. This APR is likely to drop and hover around 30% APR. We plan to keep updating the Multiplier on the pHBD-USDC vault to maintain a 30% APR. There are a couple reasons for this: 1. pHBD-USDC generates massive revenue for PolyCUB's PoL through wrapping fees and built-in arb fees that are collected while PolyCUB's arb bot maintains the $1 peg for pHBD 2. xPOLYCUB governance is about to launch and most xPOLYCUB whales are Hive/HBD whales providing liquidity to this vault. They'll be able to vote more yield into the pHBD-USDC vault 3. It's great for Hive and I am a Hive whale. What's good for Hive is good for LeoFinance and the growth of our ecosystem within Hive. We'll always aim to support and build this ecosystem ## So... Will you help us? Will you help us build the largest source of liquidity for HBD so we can onboard DeFi whales who want 20% stablecoin yield with no hassle? All you have to do is: 1. Wrap HBD into pHBD 2. Provide pHBD - USDC liquidity on https://polycub.com/farms 3. Earn 58% APR for doing so + know that you're one of the first people to seed deep liquidity for HBD and that means that you are playing a **vital** role in building the Hive ecosystem Posted Using [LeoFinance <sup>Beta</sup>](https://leofinance.io/@khaleelkazi/my-hunt-for-hbd-or-providing-hbd-liquidity-on-phbd-usdc-is-the-smartest-thing-you-can-do-to-moon-hive) hbd @khaleelkazi

Polycub’s price is likely to increase with halvenings as we see less hitting the market. I think this combined with xPOLYCUB governance = people buying POLYCUB to vote more yield into pHBD-USDC We’ll have to see how this plays out tho Posted Using [LeoFinance <sup>Beta</sup>](https://leofinance.io/@khaleelkazi/re-jfang003-58dzdj) leofinance @khaleelkazi

It actually is possible to guarantee it. Yields will never be 0%. Also keep in mind that the HBD oracle @p-hbd keeps a % of the HBD it holds staked and earning 20% APR on its own so that is deposited right into PoL which in turn supports long-term yield dynamics. Combine this with management fees on kingdoms + bonding + wrapping fees on pHBD + pHBD internal arb revenue = massive PolyCUB PoL to support high long-term yields. I just wish we had pHBD out sooner. I think the treasury growth we’ll see from it will moonshot POLYCUB… which of course, moons pHBD-USDC yield right along with it Posted Using [LeoFinance <sup>Beta</sup>](https://leofinance.io/@khaleelkazi/re-bitcoinflood-2p6jp4) leofinance @khaleelkazi

I would love to hear the broader support behind that. xPOLYCUB governance is almost ready so we will likely put up a decentralized vote to decide what to pair pHIVE against. If xPOLYCUB holders vote to pair it to POLYCUB then to the moon we go. The fun thing about voting is that I want to see a lot of community-based discussions on leofinance.io surrounding the votes and opinions on them. It would be cool to have dozens of qualified thinkers like you put posts up supporting one side or the other. Then xPOLYCUB voting takes place with the community informed on multiple sides Posted Using [LeoFinance <sup>Beta</sup>](https://leofinance.io/@khaleelkazi/re-edicted-39pxgj) leofinance @khaleelkazi

Variable Earn Rate is a mechanism we’ll introduce soon ™️ which will basically do that Posted Using [LeoFinance <sup>Beta</sup>](https://leofinance.io/@khaleelkazi/re-jfang003-2syfjd) leofinance @khaleelkazi

It’s a matter of flipping a switch. We really need to get pHBD critical mass liquidity first though Posted Using [LeoFinance <sup>Beta</sup>](https://leofinance.io/@khaleelkazi/re-l337m45732-qyze7) leofinance @khaleelkazi

I’m all in on the pHBD-USDC pool for 4 reasons: 1. It has 3x the yield of HBD staking 2. It has instant liquidity (you have to wait 3 days for unstaking HBD on chain) 3. Providing liquidity is a VITAL part to making HBD grow long-term. We need liquidity to get mass adoption and pHBD now has the deepest liquidity than any exchange in the world 4. I’m biased af Currently still trying to buy a lot of HBD to provide more liquidity. If anyone’s OTC’ing it hmu ;) Posted Using [LeoFinance <sup>Beta</sup>](https://leofinance.io/@khaleelkazi/re-acesontop-4rkase) askleo @khaleelkazi

One thing that you talked about in many of your other posts about PolyCub is the lack of value that comes from kingdoms. Kingdoms allow us to LP other assets. It also allows people to farm POLYCUB without adding much value to the platform. With xPOLYCUB governance about to be released and pHBD Farm in place, I expect may xPOLY holders to choose to move yield more and more into pHBD-USDC and away from things like the Kingdoms. We’ll see how this plays out. One thing I will admit is your take on Kingdoms being highly accurate. I do think they provide more of a parking spot. The idea is to drive in TVL and eyeballs on xPOLYCUB. I think if governance was in place at launch it could’ve had a more beneficial impact. pHBD-USDC is super exciting to me. It’s providing massive value to the PolyCub Protocol already through wrapping revenue and arb revenue. If we get $1M in HBD volume (wrapping volume / trading volume) per month, we could see tens of thousands of dollars enter PolyCub’s PoL through wrapping fees + internal arbitrage. I’m really excited. It’s also pushing us to consider the pHIVE release as it would simply add yet another massive revenue stream for the treasury through wrapping and arb. For now, we focus on getting Hivers to understand how vital it is for them to provide pHBD liquidity. We need to build this thing to $5m for the benefit of PolyCub and the entire Hive ecosystem. I’ve got a bunch of whales ready to buy HBD when there is entrance and exit liquidity Posted Using [LeoFinance <sup>Beta</sup>](https://leofinance.io/@khaleelkazi/re-edicted-5synsh) leofinance @khaleelkazi

pHBD is one of the most important things happening for Hive right now. It sounds heavily biased, but it truly is the #1 thing to rally Hive community members around. We need liquidity to onboard the world of DeFi Posted Using [LeoFinance <sup>Beta</sup>](https://leofinance.io/@khaleelkazi/re-l337m45732-5qbaok) phbd @khaleelkazi

That’s interesting. RUNE is up 20x since my first post on it and my personal position is over 10x in USD terms. Those people must have been buying the tops and selling the dips. I always dollar cost average. But as always, DYOR. If you buy something because someone else talks about it, that’s not DYOR Posted Using [LeoFinance <sup>Beta</sup>](https://leofinance.io/@khaleelkazi/re-oldtimer-454ycf) phbd @khaleelkazi

Yes arb opportunities now exist. PolyCUB also has a built-in arb bot which helps pHBD maintain its peg. Profits from the arb bot are deposited into Protocol Owned Liquidity as pHBD-USDC for PolyCUB which also helps develop **permanent liquidity** for pHBD-USDC A self-feeding ecosystem Posted Using [LeoFinance <sup>Beta</sup>](https://leofinance.io/@khaleelkazi/re-uyobong-venture-49wyyz) phbd @khaleelkazi

@khaleelkazi

@khaleelkazi

@khaleelkazi

@khaleelkazi