Many things happened in almost a week since my last PolyCub post, so it was time for a new one.
The marketing push for PolyCub continued, and it is a very impressive one indeed. If you missed the news, they were announced in discord and on the 
Before I delve into something substantial, regarding the roadmap put together by Leofinance for PolyCub, I want to mark another important milestone.
Yesterday, 16 days after launch (if I counted right), the PC to xPC ratio reached 1:15. After 9 days, it had reached 1:10, taskmaster reported.
Obviously, it's not the same growth rate as in the first few days, but still from 10x to 15x in a week is pretty great! We also have to consider that part of the growth of xPolyCUB comes from the early harvesting penalties and part of them them from the actual PolyCUB emissions. While probably both went down compared to the very first few days, what is certain is that the emissions rate was slashed two times already and reached now 3 POLYCUB per block from 5 initially.
So, we should expect this ratio to go up continuously, but at an ever slowing speed. And that is by design.
What I'm hoping to see is a ratio of at least 1:20 after a month from the launch of PolyCub. I believe it's well within possible, from 15.4x to 20x in almost two weeks.
When you look at this ratio, understand there are people who staked lots of funds in xPolyCUB close to the 1:1 ratio. Than means a 20x in POLYCUB terms in less than 3 weeks for them.
But since this is an always "number go up" mechanism, it doesn't really matter when you stake POLYCUB to xPolyCUB, the ratio will keep going up, at a lower speed, it's true. While this is in POLYCUB terms and not in USD terms, this might prove to be better on the long run since POLYCUB will experience serious deflationary pressure after only a few months.
Now let's get to the announcements Leofinance made yesterday about LP bonding AND xPolyCUB collateralization.
They are both very important mechanisms that will be added to PolyCub.
LP Bonding
LP bonding comes first, potentially this week.
What is LP bonding? Essentially, liquidity providers in POLYCUB-USDC, POLYCUB-WETH farms, WBTC-WETH and other kingdoms will be able to bond (forever) their LP positions to the Protocol-Owned-Liquidity (PoL), and receive discounted POLYCUB instead. The liquidity providers will not own their LPs anymore, they will be in the property of the PoL, which will benefit from the rewards once it adds the LP to the respective farm or kingdom. If you want an explanation "like you were 5" of how bonding will work on PolyCub, here it is.
The benefit of LP bonding is for both parties:
- the one bonding its LP gets POLYCUB at a discount.
- Protocol-Owned-Liquidity grows. Liquidity on all LP offered for bonding deepens and PoL liquidity is never withdrawn
Remember, from a point forward, PoL needs to be big enough to be able to support rewards for all liquidity providers (by buying and distributing POLYCUB from the open market), when emissions of POLYCUB drop to insignificant levels.
xPolyCUB Collateralized Lending
This is another feature that will bring great value to xPolyCUB holders.
It is not something that will be added to PolyCub in the immediate future, but more like in a few months time. Which means when the POLYCUB emissions will close to zero and after the airdrop would have finished, most likely.
At that time, the initial volatility would have been gone and so would be the huge APRs.
Let's look at the scenario where someone holding xPolyCUB will need some liquidity after a while.
Without collateralized lending, the solution would be to unstake some xPolyCUB into POLYCUB and swap the latter for whatever is needed, let's say USDC, as a stablecoin. That puts a selling pressure on POLYCUB, especially if we are talking about a whale.
Collateralized lending will allow the same person to collateralize their xPolyCUB holdings and take a loan against it.
Let's say the same whale would collateralize (some of) their xPolyCUB holdings and take a USDC loan which they need.
There are two awesome parts about how collateralized lending will be implemented for xPolyCUB.
Firstly, there is no need to unstake xPolyCUB and sell POLYCUB to obtain the funds you need. You keep holding the assets and there is no selling pressure on POLYCUB.
Secondly, the interest on the loan will be paid automatically from the rewards associated with the collateralized xPolyCUB. So, you don't need to worry about paying the interest on the loan.
Of course, the principal still needs to be paid back, in our example the USDC the whale took as a loan.
Exactly how xPolyCUB collateralized lending feature will work in details is not known yet. But it's enough to understand this is a bullish development for POLYCUB and xPolyCUB for the long term, in my opinion.