What's Your DeFi Plan For The Last Leg Of The Bull Run?

over 2 years ago

The whole crypto world is brewing, all you see is TA, predictions, hopium and big numbers flying left and right. Everyone is making plans, hoping to catch the top and become billionaire if possible right away. Unless you're living under the rock, you have already seen the craze that is going on on every platform. However, what I haven't seen yet is plans regarding DeFi for this bull run.

The only DeFi I'm involved in at the moment is CUB DeFi as DeFi it's not really my thing at the moment, but I'm thinking of how to handle my assets in the upcoming couple of months and thinking of a strategy to be ready when time comes.

source

DeFi Is Different From Just Holding Crypto

Kingdoms are protected from the craze Q4 is going to bring, there's no impermanent or permanent loss for Kingdom participants. The only change you will see is the API% fluctuation as people join and leave the Kingdom and CUB price roller coaster but as token units, you're not going to be affected in any way. This can't be told about farms though.

We've got 5 farm pools at the moment, of which 3 have assets paired with stable coins (CUB-BUSD, DEC-BUSD and CAKEPOP-BUSD) and two pools that can trick you very easily (CUB-BNB and BLEO-BNB).

In case of the three stable coin pools, if CUB goes beserk, your CUB will be sold for BUSD and in case of a pullback (till it bottoms again), your BUSD will be sold for CUB.

BNB

When it comes to the two BNB pools, things change. You have to consider two volatile assets. Ok basically one is very volatile, which is BNB, the other (CUB) is less volatile for the moment.

CUB is very young, we don't know what is capable of, it's his first rodeo. BNB on the other hand is not new and it's not the first bull run for it either. The use case for BNB is also larger than for CUB and BNB is already running as we speak.

BNB/USD 1D Chart

BNB did around 30% in the last few days already and it's not going to stop.

Altcoins are usually running in the same time, but you can't take anything for granted in crypto and it looks like this cycle is different from the other two.

CUB/BUSD 1D Chart

CUB

CUB is also moving but that big green candle has nothing to do with the bull run. The news about the airdrop has caused it and it's not over. A the time of writing CUB is trading at $0.632 and I bet till I finish the port it'll be even higher.

What is happening now is that people are withdrawing liquidity from the CUB - BNB pool, buying CUB with the BNB half and staking into Kingdom to farm CUB. This is good because (1.) it takes off liquidity from the market, (2.) drives the price up and (3) drives the CUB - BNB pool APR up as well.

However, no matter how good this looks like, what goes up must come down and one day we're going to see the exact opposite of this move. After the airdrop, most likely CUB will be migrating from Kingdom to farm and there will be selloffs too.

Right now BNB is going up and so does CUB. The rise may not be the same, but it's still good as both assets are rising. When this airdrop craze is over, the only factor influencing the market will be the bull run and at one point I see BNB dropping heavily, which will result is CUB being sold off.

My goal is to grow my CUB portfolio and not my BNB, therefore I need to keep an eye on the market and make the appropriate move when the time comes.

What I have outlined above is going to happen, but the timing is a mystery. We don't know when BNB will moon. We don't know when CUB will moon. We don't know when this airdrop caused buys and selloffs will end.

So how are you going to handle your DeFi assets in the upcoming period? Exit the CUB - BNB liquidity pool before BNB starting to dip and enter when it bottoms? Do you have any plans or are you just going to go with the flow? In any case, fasten your seat belts as the coming months will be interesting :)