Judging by the declining TVL in the two Cub pools, Leo Folk clearly don't think the returns are worth the risk compared to other options available ATM.
And TBH I can't blame them - I mean my best working theory for what's going on is this...
- The main LEO/ PCUB/ CUB holders have got plenty already and are just gradually skimming/ selling - CLEARLY this is going on.
- There's restricted demand for riskier DEFI coins in the current crypto-market
- The Burn mechanisms in place are not sufficient to offset the imbalance between 1 and 2 currently.
- Hence the Cub/ PCUB prices having been going down/ are now suppressed.
- Hence the returns on the two stable pools are relatively low.
I mean it's only a theory - but based on the declining prices and TVL I think I'm probably right based on the last few months.
However whether not the price of the Cubs picks up going forwards I still think that even at the current prices and returns on offer that the PHB-USDC and BHBD-BUSD pools are worth going into....
You can still get 15% on PHBD-USDC
And 25% currently on BHBD-BUSD
(Although personally I've got so much more in Cub I'm opting to keep my stables on Polygon even though the return is slightly lower!)
Why I'm keeping funds in the Cub stable pools...
- Even with 15% you are getting rewarded for basically hedging HBD against USDC or BUSD. This way you can have diversified stables still for a decent return. Even 15% is very good! NB I'm gonna assume the BSC pool is going to 15%, that happens!
- 15% isn't that much lower than 20%
- If for some reason HBD goes tits up and loses some of its value, going down to say $0.50 then at least your loss is mediated by the USDC half.
- Cub/ PCub might go for a moon shot, so nice be earning them, and if the price starts to creep up so does the percentage, AND don't forget the percent return on HBD can fall!
- It's very easy to exit.
- You don't need to worry about lack of liquidity with the low TVL on the DEFI platforms - you can just send yer HBDs straight back to Hive.
- And it does help the HBD liquidity issue too, of course!