Why I am quitting with Polycub, Cub, and other DeFi2.0
Not my cup of tea
Polycub, Cub, xPolycub, DeFi2.0,... These are terms that have been slammed around my head the last few months here on Hive, and I thought, I need to give this a try, the returns just seemed too good to miss out on it. But now, after one month and a half of Polycub, and farming in a liquidity pool on Polycub, and after more than a year of being in a Den at Cubdefi, I am quitting the shizzle. And I feel good with it. Let me elaborate on it.
Ponzi or not?
I am not going to say that these kind of Decentralized Financial instruments are Ponzi schemes, because I just don't get the mathematics behind it, it is just too technical for me, to truly understand, so saying it is a Ponzi scheme would be just not fair. But, and that is a real but, it truly feels like a Ponzi to me. You get lured in with incredible yields at the time that the main token (in the case of Polycub) is at great prices. At the beginning I was getting a farming yield of over 2000 %, and the price of Polycub was above 1 USD. So, that was awesome. But that changed so quickly. Right now, my farm is yielding me around 31 %, and Polycub isn't even worth 0.3 USD.
I can't help saying it, but I feel a bit scammed. Not that I lost money, but the returns really aren't what they promised to be. And there is still the risk of impermanent loss.
So I decided to drop out of the liquidity pools, and use my Leo for delegation to Leofinance itself. That yields me 16 %, which is certain, and I don't have the risk of impermanent loss. The rest I will convert to Hive Power and HBD, which give me curation and 20 % interest. And those mathematics I truly understand. As I wise man once told me, stay away from things you don't understand, well, I should have listened to him. And have stayed away from it.
DYOR
Do Your Own Research, that is the key here, I did my research, and I just don't get how it works. If you do get it, well feel free do invest in it. Good for you, and if the returns are great, even better. But for me, it just doesn't feel good...
Sincerely,
Pele23
Posted Using LeoFinance Beta
It's just economics mane.
High APR equals high af inflation.
Inflation = coin becomes worthless as people dump it to get better coins, like ETH or BTC.
It happens on every single chain with every single farming token or farming pool.
I've lost the most money due to IL and due to my own greed and stupidity chasing APR.
It's better to just stick with projects that give airdrops, I think, and to stick with projects beyond the airdrops if they clearly are doing something big with their teams.
Devs are more trustworthy when they renounce ownership of the contracts, actually have a DAO that works and are upfront with the education.
Come to Comsos or FTM, avoid scammy shit.
Posted Using LeoFinance Beta
When projects do airdrops people tend to sell. Once the airdrop is over it will be time to see where we are.
I thought the 60 day idea was good, but it just prolongs the pain of airdrops.
I'm not trying to talk you into or out of anything, but I am saying people sell airdrops.
Posted Using LeoFinance Beta
People sell their airdrops, but I don't :P I stake what I have because I know in 5 years with projects like IMX or PSP or EDEN, that I'll be happy having not sold.
Posted Using LeoFinance Beta
!LUV your not wrong
@simplegame(1/4) gave you LUV.
wallet | market | tools | discord | community | <><
I am not much knowledgeable about DeFi, therefore I didn't invest. %20 interest payout is as simple as that for now.
That’s the thing about DeFi. You need to DYOR and dive deep into the long-term plan.
While I’m not going to try and convince you, I do feel the need to tell you that now might not be the best time to get out. With pHBD released, Polycub’s PoL is now earning thousands of dollars per month.
With bonding around the corner, we will see hundreds of $k enter the PoL.
With the updated roadmap, we’ll see hundreds of thousands of dollars flow into PoL through community tokens.
XPOLYCUB governance launched this week, allowing users to control platform mechanics.
Thorchain-level DeFi features are being added to PolyCub in the coming weeks. Value accrual for Protocol Owned Liquidity is what PolyCub and DeFi 2.0
Posted Using LeoFinance Beta
That’s just the problem, I don’t understand the economics, and I really do not have the time to dive into it in depth. I understand that you are defending your “product”, and it probably has loads of angles where people can make money. But as long as I don’t see how it works, I am going to stay away from. No pun intended!
I think you are doing a great job with Leofinance, and don’t want to be the person that says this a load of bullshit. To the contrary, but a hint from me. A clear explanation of the mechanics in layman’s terms would do a great job. For most of us, it’s just too technical imo…
So you just changed from FOMO to FUD eventually.
But just echo what @joetunex said below
Posted Using LeoFinance Beta
Well, FOMO… I just don’t understand the economics, so why should I bother staying in it…
There are some crazy maths behind DeFi, which I don't understand myself but the airdrop do tend to affect the price off the token as selling of the token can't be controlled, same is happening with Splinterland's SPS, the true value of that token will be seen after airdrop.
You probably are making the right move by staying away from what you don't understand.
Posted Using LeoFinance Beta
There are just so many projects going on at the moment it is hard to pick the best one especially if you are looking for quick returns.
I will agree that Cub and Polycub have performed less than expected so far but for me, I will keep what I have and see where it goes. I won't cheerlead for it but I do have a gut feeling that with all the other things on the roadmap there is still a lot of potential for growth.
Posted Using LeoFinance Beta
I agree with you. I dipped my toe into Defi with the DEC/BUSD liquidity pool and suffered a lot of impermanent loss last time I checked. That might not be the case now but I realise it's not something you can just set and forget. It has to be managed and I don't have the head for that.
I'm waiting for the SPS airdrops to end and then I will decide what I will do.
As far as polycub is concerned I'm just claiming and staking what I'm given for free and will leave it there. If it takes off - great. If it doesn't I haven't lost anything.
Posted Using LeoFinance Beta
I agree with you.. I will take any tokens/defi/etc i get for free, but I don't buy any. I hear many hivers who are way smarter and financially wise (such as urself) say how great some of these new things are and how u should invest in it and such.. but I just quietly encourage them to do whatever and wish them good luck.
It's fine to stay out of it and I think the bLEO/BNB pool or pLEO/MATIC pool would have been right for you. Just farm the tokens and then sell for more bLEO/pLEO in the pool. It's much safer than most farm tokens because the price generally downtrends with them. I am optimistic about polyCUB but I still think it's a bit too risky so I am only staking my airdrop amount. I will wait to see how things play out.
Posted Using LeoFinance Beta
I think pHBD-USDC is better as it has higher APR and no impermanent loss at all :)
Posted Using LeoFinance Beta
The only downside is the yield of the pool isn't guaranteed. I am waiting to see what happens when the emissions are halved.
Posted Using LeoFinance Beta
I have a better Ponzi... I mean "Investment Opportunity" for you: Diesel Pools . The HIQS:BEE Pool is the best one if you ask me :)
I have bled money as well when I invested into Cub back in the days but I think what Diesel Pools promise and do is better and easier to understand. Beware the high APR Pools though, those are related to the game of defiance.
I love your wisdom.
I don't bite more than I can chew too, my level of investment is always as much as I know of it.
I am a bit wearied on claiming tho. But it's still something to look out for.