When it comes to Splinterlands DEC + DeFi, the DEC-BUSD LP on CubFinance is your best option.
After reading this blog on LeoFinance, you don’t have to stray far from home to find the best place to pool your Splinterlands DEC.
Look no further than the yield on offer at Leo’s very own DeFi platform, Cub Finance.
This section of our Splinterlands DEC guide focuses on how much you can earn right now in DeFi, before discussing how low the APR needs to drop before investors start pulling out.
What APR can I earn on my Splinterlands DEC?
Right now, you can earn 10% APR by pooling your Splinterlands DEC with BUSD inside the Cub Finance DEC-BUSD LP.
This 10% is paid out in CUB tokens that have been stable between 60-70c, with plenty of upside potential to come from imminent IDOs.
But as we’ve already learned from this guide, when it comes to buying and holding large amounts of Splinterlands DEC as an investment, it’s not only about price or yield.
It’s really all about the SPS airdrop and how many points you can accumulate from your DEC holdings.
And this is where the Cub Finance DEC-BUSD LP really shines.
You see, as you’re pooling DEC with BUSD, you’re essentially doubling your SPS airdrop points from your held DEC.
While trading above its peg in this manner, sure you could say that DEC is vulnerable to a large repricing.
But there are just so many reasons to buy DEC right now, that when combined with all the new accounts coming on board, we just can’t see demand receding.
It would still however be reckless not to consider price swings before locking up your DEC, so think about it this way.
If the price of DEC drops compared to USD, your position in the LP will balance itself and your DEC holdings go up.
Having more DEC on hand during the SPS airdrop is certainly not a bad thing.
On the other hand, if the price of DEC continues to rip higher, you’re at least getting that CUB on the side which you can always reinvest.
But at 10% APR and falling every day as more people enter the pool, there is still a massive elephant in the room...
At what APR do people start pulling out of the DEC-BUSD LP?
Obviously we don’t know at what APR this would become an issue, so let’s just call it ‘x’ and have a discussion.
The flow-on question then becomes, does x% APR mean that demand for DEC dries up and the DEC price itself takes a real hit?
You could certainly argue that investors who don’t actually play the game may slow their DEC accumulation if the LP rewards just aren’t there anymore.
Especially if their true goal of buying DEC is the earn SPS tokens that they could simply allocate their DEC funds to buy off the market.
But as these weak hands pull out of the LP, then the share of rewards for those left will increase.
One of the cool things about LPs in DeFi is that this mechanism allows the market to decide its own equilibrium point where APR will naturally stabalise.
So while the still diminishing APY on DEC-BUSD LP means we haven’t yet found that equilibrium, it should come soon.
Best of probabilities to you…
Direct from the desk of Dane Williams.
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