What is a Yield Optimizer in DeFi and Why does it matter?
Sustainable yield, low volatility and eliminating impermanent loss, these are very crucial points to consider before investing in a DeFiprotocol.
It’s no easy feat to find a DeFi protocol that provides all these crucial bits in one, high yield is always followed by high volatility which ends up being unsustainable, which is beside the impermanent loss that eats into investors capital like a digital cankerworm during dips.
Few platforms offer excellent tokenomics which lead to reduced volatility but end up having low yield due to the rush for the said reason, apparently, the average person will pick the low volatility over high yield that is sustainable, that’s why using stable coins to farm yield has become more popular over the past months.
Very few have the ability to cushion the effect of impermanent loss, offer high yield and low volatility. For impermanent loss, the effect could be cushioned if the other aspects of the tokenomics cover up for it.
Essentially, impermanent loss wouldn’t exist practically if the yield makes up for it, it will exist in that there could be difference in the quantity of tokens at the start of the farming and at the end — but as long as you’re more profitable than when you entered the pool over a certain period of time - Thorchain Impermanent loss protection style
Why Yield Optimizer matters in DeFi
What if there was a system that prioritized Optimizing Yield and making it sustainable which in turn maximizes revenue?
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This is part of the problems DeFi 2.0 aims to solve. Most of the problems plaguing DeFi 1.0 is solved by optimizing yield. If yield is properly optimized, impermanent loss wouldn’t be a thing in the long run and volatility will be minimized, if yield is properly optimized, the returns will be maximized and sustainable.
Introducing PolyCUB - DeFi 2.0 Yield Optimizer
PolyCUB fixes this. PolyCUB is a next level DeFi 2.0 platform on the Polygon Blockchain, Polycub aims to prioritize safety, yield optimization and sustainability in ways that have not been seen in DeFi through the combination of several unique tested formulas applied in the entire DeFi space with its long-term deflationary native token - POLYCUB
PolyCUB is designed to act like "the BTC of Yield Optimizers". The token flips deflationary in the long-run which means that hodlers staking xPOLYCUB will benefit greatly from the future of the platform as it collects Management Fees and Autocompound Protocol Owned Liquidity.
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Polycub is undoubtedly a super interesting experiment in the DeFi space. This post is aimed at keeping the concept of Polycub as simple as possible and won’t be diving deep into the Polycub tokenomics, but for more information about that, visit this link.
This post also gives an awesome explanation about the economic implication of Polycubs experiment
While Polycubs excellent tokenomics and mechanics are playing in the background, the Leofinance team is also making giant strides to ensure Polycub gets out there through several marketing channels, a solid project also needs solid marketing props
I was recently asked to define Polycub in the simplest and shortest way possible to a noob who doesn’t know much about DeFi or blockchain. Simply put, Polycub is a platform on the internet that provides unique opportunities for users to generate wealth while they sleep by putting their assets to work, the type of opportunities that exceeds what is available through traditional finance methods and other methods online.
To learn how to get in on the action in PolyCUB, read this awesome easy to follow guide.
Thanks for reading
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