CUBLIFE: Another Payout Coming Up

almost 3 years ago (Edited)

We live in very interesting times.

The last few weeks are a reminder that, even during a strong bull run, nothing goes in a straight line. It was proven as the markets got slammed, with the bear taking over. We will see if this is temporary or a bit longer term.

Either way, it is likely we have not seen the end of the bull. This is, however, a great reminder of how important it is to keep building. No matter what the market is doing, outsized returns are made based upon consistency, compounding, and time.

This is what LBI and the associated projects seek to do.

Our latest venture is just getting off the ground. CUBLIFE was released last week along with the first payouts. We will see the second one taking place in a couple of days.

At the same time, the pre-sale is coming to an end. Anyone interested in getting more CUBLIFE, simply send swap.hive or LEO to this account. Anyone who misses the cutoff date can still send tokens, they will just be held until the conversion next month. This is being done on a monthly basis to ensure alignment in the purchase pricing and entry into the pools.

One thing that has gotten people wondering is how does market action affect the payouts. This is a difficult situation to access because there are many different variables.

To start, liquidity pools are dependent upon the pricing of two tokens (unless one is a stablecoin) as well as the activity. Pools receive transaction fees so, an increase in volume, will result in greater payouts.

Therefore, we can really only focus upon the LEO and CUB pricing.

When we enter CubFinance, we do so by wrapping LEO. This allows us to then enter the different opportunities and getting the different pairs required. Obviously, the greater the value of LEO as compared to the other tokens, the better it is for us. However, that is hard to time and forecast.

As we see, when markets start to drop, everything goes.

Going the other direction, each week, the investment in CubFinance generates a return, as paid out in CUB. This is then converted to bLEO and unwrapped. That is what is distributed to the different categories.

Here we see where the CUB-bLEO pricing is vital. Upon exiting, the greater the value of bLEO, as compared to CUB, the better the payouts will be.

Using some simple numbers, we can see clearly how it works.

CUB $1.50
bLEO $.75

Under this situation, the return is 2 LEO for each CUB generated. If there are 50 CUB paid out, it will result in a dividend pool of 100 LEO.

If we see the price of bLEO explode, and it goes to $1.50, then we see parity with CUB. This will mean that we have this:

CUB $1.50
bLEO $1.50

Again, if there was 50 CUB generated, the dividend payout would be 50 LEO. Here we see the payout is half what it was in the other scenario.

Naturally, we have no control over the prices of tokens or what happens when the conversion takes place. Over the long haul, it is likely they will bounce up and down in relation to each other. We are also going to see the weekly CUB generated move as the money involved changes. This is an ever changing network meaning nothing is static.

That said, it is a passive opportunity to put some money in and get a return each week. As more features are added to the CubFinance platform, we might be able to better leverage the holdings for a greater return.

On that end, we will have to see how things go when the new aspects are added.

In the meantime, we can use what is available to us. The first week provided a payout for the tokens dropped. We will see the same thing in a couple days. Next week, it is likely what was sold will enter the platform, and be put to work.

Hopefully this will pick up some spirits on such a down day in the markets.