PolyCub Bonding helps make Polycub special or unique.
Leofinance founder, Khaleel Kazi, posted that the release of PolyCub Bonding was imminent, so probably next week since he doesn’t normally launch new projects on a weekend. So this is a post explaining one of the new features called PolyCub Bonding. Which I think is another thing which distinguishes PolyCub from the majority of DeFi programs.
PolyCub Bonding
I think this is best explained by comparison to buying United States Treasury Bond.
United States Treasury Bond
When you buy a 1000 US Dollar Treasury Bond you pay the current face value of the bond, 900 US Dollars. If you hold that bond to maturity, a word which means a period of time like 30 days or 30 years, you can then turn it in for 1000 US Dollars. This means you have purchased this bond with 900 US Dollars, and it entitles you to collect 1000 US Dollars at a later date.
The Bond ROI or Return on Investment is 10 percent.
PolyCub Bind
- PolyCub Bonding can be explained in a similar way.
- You buy a PolyCub Bond for 94 PolyCub worth of LP tokens, and if you hold it to maturity, you can turn it in for 100 PolyCub.
- The Bond ROI or Return on your investment is 6 percent.
- ‘The maturity period for PolyCub bonds is not 30 days or 30 years, it’s 7 days.
The PolyCub User Interface
In Khal’s post he showed us the new User Interface, which looks intuitive and crisp.
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- As you can see in these pictures you will now be able to buy PolyCub Bonds like WBTC-WETH SLP Bond, with your WBTC-WETH Sushi Swap LP tokens, which also called SLP tokens.
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- You buy the Bonds at a discount, or less then their value at maturity, which is in 7 days, and the discount is listed on these diagrams as the ROI or Return on Investment.
- You can sell the bonds early, before maturation, but then you loss some of the return which goes to the person who bought them.
- This how US Treasury bonds work, and all other bonds work.
- If you hold them until maturity you get the maximal return.
- If you sell them before maturity your return is smaller.
- I think that’s a short, simple conceptual frame work for understanding PolyCub Bonding.
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