Disclaimer: Your funds are your responsibility. All information in this article is reflecting my own investing strategy and should not be taken as financial advice.
DeFi farming is the leading cause of migraines and strong headaches, we all know that. Beginners often have a very shitty time trying to set up different networks on Metamask and bridge funds from one chain to another. Luckily, Cub Finance has emerged as a solution for that problem as it is very easy to interact with.
How?
You will obviously need a Mestamask account installed on your browser. Click on the dropdown menu and scroll down to "Custom RPC". Once you have clicked on it, use the following information to fill out the parameters.
Network Name: BSC
New RPC URL: https://bsc-dataseed.binance.org/
ChainID: 56
Symbol: BNB
Block Explorer URL: https://bscscan.com
The Binance smart chain uses $BNB as the native currency meaning that you will be paying for every transaction in BNB. So before you can start anything you will need to fund your address with some BNB. The easiest way to do this is to create a Binance account, purchase BNB and withdraw to your Metamask address. Be sure to pick Binance Smart Chain as the withdraw option.
When it comes to your investment funds, there are a few ways you can get them over to BSC. The hard and more expensive way would be to brigde your Ethereum funds to the Binance Smart Chain. ZeroSwap is a very straightforward way to get that job done.
Another option would be to do the same as you did with BNB from Binance. The exchange will let you withdraw almost any currency directly to BSC. More advanced users can consider diving into the Leo Bridge.
Why?
Cub Defi launched during the peak of the farming craze this year. Slowly the hype died down and we seem to be stabilizing on all fronts. Cub did go down a lot when it comes to price but it seems like a very good investment right now because of that fact. There is close to 10M in funds under management on the farm, and the market cap of CUB is sitting around $3M. Usually, those two numbers aim to be at the same level, if the project doesn't encounter some major problems during the first few months and Cub had absolutely no issues so far.
If you look at the whole BSC landscape almost all popular farms got exploited in one way or another. Protocols got hacked, rug pulls all around... Any sane person wouldn't want to keep a lot of money on that chain but Cub stands out in that area. While others were dealing with hacks and exploits Cub Finance evolved into an auto-farming solution that can give you peace of mind and reasonable returns at the same time.
Investing Strategy
50% BLEO-BNB pool (~100% APY)
50% Kingdoms - Cub staking (~100% APY)
Reasoning:
Leo and BNB are fairly stable currencies (for now). They aren't prone to huge price swings and usually follow the market very closely. Pooling these two is great for those that see value in both tokens in the foreseeable future. Even though Binance is not that great as a company, they know how to increase the value of their token, and when it comes to investing, that is the only thing that counts. Leo Finance is self-explanatory. Content creator rewards are transitioning to crypto and Leo is at the forefront of that change.
Cub is a bit more volatile but looking at the monthly chart it is safe to assume that it has stabilized. It also has high growth potential due to the upcoming BNB rewards that will come with Cub staking.
Risks involved
You should always keep in mind that 10M in liquidity isn't as much as it sounds. Whales can always accumulate for months and then drop the price by 50-60% in a matter of minutes. That is why you should always diversify and have some funds in alternate currencies to cover the losses if they do occur. Think of it as your personal insurance.
Another factor is impermanent loss. If either BNB or Leo go dramatically up in price, you may be missing out on some gains. When pairing tokens in a pool they have to be at a 50/50 ratio at all times. If BNB starts going up and Leo stays at the same level you will be selling BNB for Leo constantly at unfavorable rates. But, if you think both currencies have a bright future you won't really miss out on anything.
Jerry Rating - 8.5/10
Without exaggeration, Cub Finance has been my best farming experience on BSC (partly because I didn't get in at the very beginning).
The Good:
- Cub has only 1000+ holders meaning there is so much room for growth.
- Cub has no whales. The biggest whale has close to 1% of the supply.
- Highest APY is ~150%. Steady and consistent rewards are always better than hyper-farming which is almost always followed by hyper-dumping.
- Cub is backed by Leo Finance, and Leo Finance is backed by the ever-growing Hive community. A combination poised for exponential organic growth.
The Bad:
- Updates usually take months from announcement to implementation. Too much Soon™ for my taste.
- Slow growth due to low marketing efforts. Is not necessarily bad but great products deserve great marketing imo.
Final Verdict
If you are looking for fertile soil, look no further than Cub Finance. Beginner-friendly, whale-free with auto compounding vaults. Also, the best place to stake your Cake tokens if you do hold some.
