CubFinance: What are Farms and Dens?

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(Edited)

farmsdens.jpg

With the dawn of the new LeoFinance DeFi app CubFinance, we get tons of new features for LEO and various other tokens and make them work for us. The two main functions of CubFinance are Farms and Dens. Let's have a first look at them.

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The Farms

The farms are the liquidity pools of CubFinance. Here you can pool two tokens with each other and earn CUB tokens as a payout. The payouts are done in real-time and tick up about every 10 seconds. You need to harvest your earned CUB manually though, which is a BNB transaction and creates (relatively low cost) fees.

Since the entire platform runs on the Binance Smart Chain, you will not be able to pool native tokens (except for BNB and BUSD) but the BEP20 versions of them. Those are basically like the wrapped tokens on the Ethereum blockchain or the SWAP tokens on Hive Engine. The easiest way to get them is by simply withdrawing the native tokens on Binance as BEP20 versions to your MetaMask wallet, that you prepared for the Binance Smart Chain.

Check out the brilliant documentation from CubFinance for more information: https://docs.cubdefi.com/

Everything on CubFinance works with the BNB token as base asset (just like with ETH on UniSwap and co), including paying all the fees for each transaction on CubFinance. You can easily swap in and out of all other tokens, using BNB, including bLEO and CUB. bLEO is the wrapped LEO token on the Binance Smart Chain and can be wrapped quickly directly from your HIVE wallet.

How to Wrap LEO into bLEO

bLeoBNBpool.PNG

All farms come with different multipliers, that are already factored in the shown APR. The more people/liquidity enters a pool, the more shrinks its APR. Currently we still see outrageous numbers, which will likely normalize over time.

Entering a farm does cost deposit fees, except for the CUB pools, which are free to enter. The bLEO-BNB pool has a 2% deposit fee and all other launch pools have a steep 4% deposit fee. Keep that in mind before you enter them and remember that the shown APR can change at any time. Also, each farm will create impermant loss for one of the tokens you pair in them over time. This means you will likely end up with more of one of the two tokens and less of the other one. High risks for potential high rewards.

What is really fascinating about CubFinance and its deposit fees, are how they are being used entirely to buy back CUB (80%) and LEO (20%) and burn them.

Currently Available Farms

Below you find the available farms from the launch day. I love the icons they created for them. Great design!

CUB-BUSD LP
CUB-BNB LP
bLEO-BNB LP
BNB-BUSD LP
USDT-BUSD LP
BTCB-BNB LP
ETH-BNB LP
DAI-BUSD LP
USDC-BUSD LP
DOT-BNB LP
CAKE-BUSD LP
CAKE-BNB LP

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The Dens

Unlike the Farms, where you are at risk of impermanent loss, the dens offer a nice alternative for token holders, who don't want to pool their tokens but still earn interest for them. The APR percentage is generally lower here compared with the initial Farm APRs but it is also much easier and straight-forward. You don't need two tokens to pair with each other. It is a simple stake mechanism and you can always unstake again.

However, all dens require a 4% deposit fee (except for the CUB den, which has no fees). That is A LOT! Make sure you only stake your tokens if you consider the current APR for your specific den still high enough and when you plan to hold your tokens in there for long enough to make it count. Keep in mind, that all shown APR's are due to changes, depending how many people are using the same DEN. When more people enter a DEN, the APR will go down immediately.

All payouts are in CUB tokens, so in order to grow your stake in the token of your choice, you need to manually harvest your CUB every now and then, swap it for the token you want and then either add that to your dens stake or do something else with it. Alternatively, you can also keep the CUB and compound that by adding it to the CUB den or to one of the CUB farms, which is both without fees.

Currently Available Dens

Below you will find all the dens you can enter from launch day.

CUB
BUSD
WBNB
USDT
BTCB
ETH
DAI
USDC
DOT



CAKE

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Conclusion

This is all very exciting and new to most of the Leo community. Few have adventured into similar platforms in the DeFi space before. I have been on UniSwap since the start of the WLEO pool and CubFinance is NOTHING like that. So many options, so much stuff happening, CUB earnings in real-time. You can literally just sit there and watch your CUB grow and grow. At first it looked like I have to learn a lot but it is actually much easier than it might look.

CUB.png

However, don't let the high APR numbers cloud your judgement of the high risks involved with yield farming like that. Nobody knows how much the CUB token will be valued at, as soon as the airdrop has been delivered to LEO token stake holders, prices will fluctuate a lot again. This platform is not even 24 hours live and things WILL change. Entering all farms and dens without CUB does cost deposit fees, that are immediately deducted from your stake. You will need to earn that back first before you make any profits.


That all being said: Happy farming!

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51 comments
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I was looking for such a post since I read the cubfinance launch announcement. I was getting overwhelmed by so many options, tabs and the new terms. I was confused AF but this post made most of the things crystal clear to me. Thanks a ton @flauwy.

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I was a little frustrated at first because everything was so new to me and I only understood half of it. Eventually it clicked, though, and I'm enjoying the ride ever since.

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indeed, it was a hell of a ride before getting into it. For someone without any hive or crypto knowledge it would be impossible

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I am still at the point of confusion. Haven't took the time to understand everything as I feel like I should.

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I badly need now slow-motion video camcorder.

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Me too... I can’t convert my Bleo to Cub on Cub finance .... I have my BSC wallet connected to Binance but the exchange doesn’t work.

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That must be an epic look, seeing the numbers fly like that. I already enjoy it on a smaller scale!

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I sit patiently and wait for my CUB drop. Still not quite sure how this is all working as there is a lot to learn in a little amount of time. I guess I should have been reading up on metamask and binance and swapping and and and... ugh

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Me too... I wrapped my Leo in bleo but can’t convert it to Cub on Cub Finance .... I’m lost.

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Same place I'm stuck at. Have you managed?

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I did manage ... I had to turn off Metamask and do everything with BSC and Binance ... I sent 1 BNB ($300) from Binance to BSC ... then bought 30 Cub ... my $300 invested is now worth about $100; ... so it’s a good thing you waited. Maybe you will be able to buy some Cub for a few pennies

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Thanks for the response. I guess I should wait a little longer and get to understand the system more. All the best with your investment.

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(Edited)

I finally was able to find the BLEO I sent there. I can’t seem to convert it to Cub though... can I not just exchange BLEO for Cub then put it in the Den to see how it works? I have everything connected with my BSC extension on Chrome. My BSC is connected to Binance and I approved the small .19 cent fee ... but when I approve nothing happens ???

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This is a great post. I just want to convert my BLEO to Cub and put it in the Cub Den... that is all... but can’t do it ???

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You can easily swap between the two using the exchange on CubFinance. Make sure you have BNB in your wallet to pay for the transaction fees.

swap.PNG

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(Edited)

So I use swap ... I think I tried that but it didn’t work, I will try again. I have lots of BNB ... my BSC is connected to Binance is that all I need or do I need to send BNb to Cub finance somehow ??

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Actually that is all you need. No idea what goes wrong there.

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I have no BNB nor Binance account. Does it mean that I can not use bLeo,CUB on Cubdefi?

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We are living in great time and
this should be the beginning of something great for
Hive, Leofinance, etc...
!BEER

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Thanks for clarifying these two key concepts.

I hope you will keep making posts like this to help people get started.

Troubleshooting in the comments is appreciated.

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I am trying to write more frequently again. Happy to help both with posts and with comments.

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Good guide, was for me first a bit confusing yesterday. But after some time it is really intuitive. I wish i had your guide yesterday :D would save some time :P

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This is a great post describing exactly what many people are struggling to learn these days. Well done!

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Awesome write up! Still trying to figure out dens and adding in BTC and how to. Not sure if it's worth it though and I might stay focused more on farms as passive for now.

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I think dens are great to avoid loosing your assets to impermanent losses while still yield farming with them. The percentages are still impressive although lower than with the farms.

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More very helpful info. Thank you! I've managed to find my way through one end to the other once. Now, if only I could remember all the steps I had to take to do it. Hopefully within the next couple weeks this will all be clockwork but it sure is a challenge now. Reading these types of posts really helps. Thank you!

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Well explained! CubFinance definitely will rock soon! Unparalleled potential will surely put in #1.

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Thanks for the detailed explanation, it helps a lot to have posts like this in learning.

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This platform is not even 24 hours live and things WILL change.

And some will loose and some gain - isn't it ?

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Pretty much. We can already see how the APR is dropping, while other farms are slowly increasing again due to people moving their assets around.

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This is a succinct and clear post for anyone looking to get into the DeFi space. Thanks for the overview!

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Its all new to me and I am trying to learn more of it. This post is helpful to understand and learn about CubFinance. Nice post.

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This post was exactly what I needed! Thank you @flauwy.. I was a bit confused about the farms and dens, only jumped in on the farms today while I wrote yesterday that I could not really grab my head around all this stuff. BSC was completely new to me so I was a bit hesitant. Turned out that I just needed to do it (like Nike haha) and now I know how to make all the transactions. Still a bit curious about the number of both coins I will end up with when I unstake the liquidity. I learned in your post here that this may vary, so at least that's clear upfront.

Thanks again, very well written :)

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Well written quick guide. totally deserves the votes. Thanks a lot because this clears up a lot in a very little time :)

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Thanks for the explanations @flauwy. Yes, it is so new to many of us but the high returns this early are encouraging. I am convinced that it will still be profitable a few weeks, months, years down the road even if it is not a 9,000% APR. :)

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