Since the launch of PolyCUB, there has been an endless stream of questions about Protocol Owned Liquidity and sustainable emissions on PolyCUB. The launch was designed to be DeFi 1.0 for the first 2-3 months.
Yield is paid via a high emissions rate. That's DeFi 1.0. We're still in that era but we are quickly approaching the next halvening for PolyCUB (around May 5th) which will signify the reduction of POLYCUB block rewards by 50%. When that happens, we'll see new POLYCUBs hitting the market at a much lower rate.
What does this really mean?
POLYCUB is harder to earn. Yields are more sustainable.
DeFi 2.0 starts to kick in as we approach July. That's when yield from emissions are almost non-existent and the yield that's generated on PolyCUB vaults will be derived from Protocol Owned Liquidity.
As many know, we've thrown numbers around on the xPOLYCUB staking vault, for example. Saying that yield on xPOLYCUB will always be in the 30% + range.
This is built through Protocol Owned Liquidity. We talk about it in more detail in this clip from the LeoFinance Weekly AMA.
With the new pHBD-USDC vault, people are wondering how this benefits POLYCUB in the long-run and if we will be able to keep pHBD-USDC yield above 30% in the long-run.
pHBD-USDC adds a ton of value to PolyCUB through wrapping revenue and arb revenue which get deposited into the Protocol Owned Liquidity. We're about to see this take off in a massive way as PolyCUB just gained a huge source of revenue for its treasury.
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