RE: Cub Finance: Entering the CUB/BUSD Defi Farm

almost 3 years ago

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I've got the entirety of my stakes, aside from some CAKE in the kingdom, in the CUB-BUSD farm. See, farms paired against a stablecoin have the advantage of square-root behaviour. If CUB goes 4x down, your LP worth is going to come 2x down, if it's up 10x, your LP worth goes up the square root of that, which is 3.16x. Learned that one from Edicted

Since the APR is so high in this pool coupled with the advantage above, impermanent loss becomes sort of irrelevant, and CUB-BUSD becomes the brightest option to put your stakes into.

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2 comments

@jfang003 75

almost 3 years ago

Yea the square root effects helps quite a bit and its more stable. The best part about it when CUB increases is that the harvest CUB will make up for the difference somewhat.

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@misterengagement 57

almost 3 years ago

Thank you for your engagement on this post, you have recieved ENGAGE tokens.

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