New application merges DeFi 2.0 protocols with yield optimization on Polygon

Decentralized finance (DeFi) first took the world by storm in 2020. Now, two years later, the world has grown to know a number of profitable DeFi initiatives. Regardless of these successes, like all new area, a number of issues have additionally arisen. 

Take into account Bitcoin (BTC), which launched the world to cryptocurrencies and blockchain however might solely be used for funds, and its successor, Ethereum, which opened the world to further know-how use instances. Equally, as DeFi 1.0 led to incomes alternatives and liquidity issues with customers switching between platforms to pursue higher rewards, 2.0 protocols wish to construct steady worth with extra superior ideas.

Serving to to usher on this period is LeoFinance, a workforce that has been constructing and managing purposes over the previous three years. Its assortment consists of social apps corresponding to LeoFinance and LeoMobile (for iOS and Android), each of which exist because the spine for the workforce’s bigger objectives. 

With the profitable construct of purposes on BNB Chain, amongst different platforms underneath the workforce’s belt, LeoFinance spent seven months researching the subsequent wave of options, DeFi 2.0, paying attention to the decentralized autonomous software (DAO) revolution, and platforms corresponding to Olympus. It supposed to take its findings, “the important thing elements of success,” and apply them to its platform goals, which, within the phrases of one of many workforce members, is to “construct a sustainable DeFi 2.0 Yield Software on the Polygon blockchain for our group of diamond paws.”

“Our final ambition with the LeoFinance Web3 Ecosystem is to broaden the width and depth of our group. Width means getting new customers, and depth means reaching an increasing number of ranges of alternative to counterpoint our customers and create abundance for our group.”

With this mission high of thoughts, the LeoFinance workforce has launched its new app, PolyCUB. PolyCUB goals to enhance tokenomics and mechanics over present DeFi yield optimizers and open group members’ eyes to new alternatives on the Polygon blockchain.

Guaranteeing sustainability within the long-run

PolyCUB makes use of Kingdoms, a cross-platform yield farming vault that permits customers to earn by Base APY from the native platform and PolyCUB APY.

On this mannequin, long-term incomes sustainability is ensured by PolyCUB’s underlying shortage mannequin. The app’s token operates equally to Bitcoin’s in that it’s not a medium of trade. As an alternative, PolyCUB has worth directed towards it, guaranteeing that the mandatory deflationary strain is being utilized in distribution. Because of this, xPolyCUB is right for these planning to carry their property for the long run.

In observe, anybody staking PolyCUB as xPolyCUB in a single staking pool will maintain a endlessly deflating asset. XPolyCUB’s worth towards PolyCUB solely will get bigger with time (10.71 PC per xPC at press time). XPolyCUB acts as a declare on early harvesting penalties generated by exterior capital in Kingdoms vaults.

Worth is additional ensured by the platform’s tokenomics redistribution. As beforehand talked about, Kingdoms permit customers to stake totally different tokens and earn yield as auto-compound returns, permitting customers to extend their earnings with minimal effort. These payouts are cut up 90/10, guaranteeing that 10% of the proceeds are redirected to the xPolyCUB contract. 

The platform additionally makes use of a curve-style harvesting penalty technique. Customers can choose to attend 90 days for his or her harvests to “unlock” and be claimable, or they will instantaneously declare their harvests however pay a 50% early-harvest penalty to xPolyCUB holders. 

This function is coupled with Protocol Owned Liquidity, which is generated by PolyCUB Bonding and a ten% administration charge on Kingdoms yield. When mixed, these options guarantee the value will enhance in United States {dollars} phrases over lengthy timeframes, and that worth is funneled into the palms of anybody staking xPolyCUB in a manner that’s nonexistent in DeFi 1.0 platforms.

Constructing the expansion mechanics

With a group of hundreds of month-to-month lively customers internationally, together with bloggers, readers and Web3 customers, LeoFinance is now focusing its efforts on increasing its Web3 ecosystem to new blockchains of alternative corresponding to Polygon. 

Its app, PolyCUB, makes use of bonding mechanics which can be impressed by Olympus and coupling them with curve-style staking with xPolyCUB to create a sustainable yield optimizer.

By leveraging its rigorously crafted mechanics, the workforce believes it’s well-equipped to drive long-term development in an trade missing in long-term considering.