This tweet sent out by @leoFinance few days ago, read deeply in my heart and it all adds up to the sequence of value that PolyCUB emits to its participants. In reply to one of the questions on the collateralization of xPolyCUB, it was clearly stated that taking loan from xPOLYCUB would leaves the loanee with the freedom to spend his liquidity as he wills while the loan repays itself automatically from the staked xPOLYCUB.
That would be a leveraged trade on #POLYCUB, but yes you can do anything you want with the liquidity you get from the loan
Buy POLYCUB with it
Buy BTC with it
Stake Stablecoins for APY
Buycards
… the world is your oyster
I went a step further to read up to understand what crypto loans typically look like, so I can tell how much valueful is the PolyCUB option.
According to NerdWallet, a crypto loan is a type of secured loan, similar to an auto loan, in which a participant pledges an asset to secure financing. In this case, cryptocurrency is the asset offered to a lender in exchange for cash that you'll pay back in installments. source
Typically, crypto loans allows the borrower to connect with the crypto lending platform requesting a crypto loan. The borrower offers crypto-assets as collateral for the loan. The crypto platform, serving as an escrow (a third party), accepts the loan and attaches the collateral. The lender then funds the loan through the third party platform (escrow) to the borrower. This facilitation is somewhat very close to what is happening in the fiat debt system and it's centralized. However, PoyCUB offers something different and more convenient, plus the fact that it's decentralized.
Holding #xPOLYCUB = long-term, sustainable yield generation from the #POLYCUB platform through protocol owned liquidity and management fees on Kingdoms + the ability to collateralize and borrow synthetic assets
The future is in sustainability & massive value accrual to xPOLYCUB Tweet link
One of the positive sides of crypto loans is that it beats the demands for collateral which are forfeited if the amount loaned is not repaid according to terms as applicable in fiat lending. Being able to remove the collateral requirement is key to crypto breaking out into global debt markets. Indeed, this is what xPOLYCUB Collateralized Lending offers.
Within the PolyCUB system, users will be able to stake their xPOLYCUB tokens into the collateralized loan contract and take out a loan from the Protocol Liquidity in exchange.
It must be understood that the xPOLYCUB staked as collateral is to help the user generate profits that is used to pay off the loan liquidity received. This is a huge disruption in the regular definition of collateralization in centralized debt systems.
This is just the massive opportunity that PolyCUB DeFi presents to transform access to capital. That's what will finally open crypto lending to most people in the world.
Our eyes are glued to polycub awaiting when the lending tab comes live.
These posts would be of benefit in explaining more on the expected xPOLYCUB Collateralized Lending:
- Introducing the PolyCUB Roadmap | xPOLYCUB, Bonding and Collateralized Lending
- PolyCUB | Emissions "Halvening" In 2 Hours and the Future of Sustainable DeFi Through Utility AND Scarcity
Things are shaping up speedily and it's exciting to happen here from the LeoFinance kitchen.
LeoFinance is a blockchain-based Web3 community that builds innovative applications on the Hive, BSC, ETH and Polygon blockchains. Our flagship application: LeoFinance.io allows users and creators to engage and share content on the blockchain while earning cryptocurrency rewards.
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