Am I doing this right?
CUB Finance has been the talk of the town this week. Released Monday with eye-popping APR numbers, then the long refresh refresh refresh while we waited for the airdrop, and now... a dull equilibrium, with APR ranging from 502% all the way up to 2852.10%
Does something have to give? Where do the yields come from?
For anybody new to "Yield Farming", the yield comes from newly printed CUB. Every 3 seconds, 3 more CUB are printed, and they are distributed to the farms/dens based on their assigned proportion. (The BUSD den shown gets 2 portions. The much more generous CUB-BUSD Farm gets 40 portions!) Within each farm/den, they are divvied up to the holders based on their share of the TVL (Total Value Locked) in each pool. (So even though CUB-BUSD gets 40 portions to BUSD's 2, the APR is only 4x, because it has a lot more value locked in it!)
This will continue until CubFi is one week old... and then the release rate will drop to 2 CUB every 3 seconds... for a whole week, after which it will settle to only 1 CUB every 3 seconds. So yes, these APRs will drop by 1/3, and then by half again, to finally be 1/3 their current level (if TVL holds steady). As audit results are released and more yield hunters become aware of CubFi, more TVL will be attracted, and yields will drop even further.
Ideally some of that new TVL will go into CUB, boosting its price, and of course the yields because the newly printed CUB will have more value.
And that's pretty much the Lion's Den! I've been playing with Yield Farming on ethereum for a while, so drop any questions below (or jump into the LEO discord, where tons of CUB farmers are chatting it up around the clock... really it's a good thing I'm on paternity leave, because no real work would be getting done this week anyway!)
Here are some useful links:
https://docs.cubdefi.com/
CubDefi has some of the best documentation I have yet seen in the DeFi space. If you've never yield farmed, work your way through and then drop any questions below. I'm happy to clarify anything that I know.
https://goswapp-bsc.web.app/0x50d809c74e0b8e49e7b4c65bb3109abe3ff4c1c1
This is the app most are using to keep an eye on the CUB price:
https://howmuchismylp.com/
For this one you'll need to Connect your Wallet and then copy in the 'Masterchef' address: 0x227e79C83065edB8B954848c46ca50b96CB33E16
The 'Masterchef' is the smart-contract that governs the CUB release.