During this Tuesday's AMA Khal released some more details about the upcoming Vexpolycub vault where you can lock your XPolycub for two years with a 20% APY. He even provided us with a sneak peek into the future user interface for Vexpolycub on the AMA discord chat.
Today's AMA VeXPolycub chat starts around 33:00
Global Unlock
Starting from the day VeXPolycub goes live the clock starts counting down for two years after which all XPolycub staked will be unlocked all at once. Meaning if you stake 1 year after VeXPolycub goes live you will only have to wait 1 year to have it unlocked. The team is hoping to launch this feature next Friday.
The global unlock after the 2 years period caused some concern about a future dump. Khal doesn't seem concerned about this and we went back and forth with some valuable arguments.
My concerns are only valid if the vexPolycub starts to get too big both in locked percentage and price appreciation. Imagine 50% of all Polycub become liquid on a certain day, after the majority of investors waiting for such a long time. Bear in mind two years in crypto is a LONG time.
My theory is that two things might happen:
Investors with liquid Polycub will front-run the unlock and sell their liquid Polycub in anticipation of "the dump".
Investors will lock XPoly at (PC/xPC Ratio * Polycub price = $3.446) there are two moving parts in this equation. PC/xPC Ratio will keep increasing in perpetuity. Polycub's price will probably be way higher than it is today.
I wouldn't be surprised to see every Xpolycub staked on vexPolycub doing way over 10x in dollar terms.
Put yourself in my shoes, lock $1,000 into Vexpolycub, and unlock $10,000+ two years later. I would take some profits, not 100% for sure but at least 25% minimum. I'm loyal to Leofinance but I'm here to make money, the crypto markets thought me to take profits every now and then.
Let's say 50% of all Polycub is into VexPolycub and investors dump on average 20%. That would result in 10% of the entire supply being dumped at once (Not accounting for the possible pre-dump on my first point).
I'm exaggerating the numbers but to be fair almost 5 out of 6 polycubs are currently in the Xpolycub vault. The community is loyal and sees the future potential of the project, it wouldn't be that farfetched to see Vexpolycub swallow 50% of the supply.
Maybe it is... I'm just a random guy on the internet throwing around some hypothesis about the future of a $1 million dollar cap cryptocurrency.
Variable time staking
There's a solution to every problem: If VexPolycub becomes too big there's always the possibility to integrate a variable time staking that would allow users to Re-stake their XPolycub for additional yield in order to dilute the possible dumping over a longer time period. Smoothing things out and avoiding the pre-global unlock panic.
Time is on our side
All of this discussion is merely hypothetical and we will have a lot of time to see how the situation is progressing and debate this issue with the relevant data to back it up. I'm only making this post because I love talking Polycub and want to hear what the community thinks about it in the comments down below.
Hit me up, I'm always down to talk Polycub!
