Values Vs Price - Understanding LeoFinance Growth Paradigm

in #hive-1679222 months ago

Greetings to my esteemed Lions 🦁 on the LeoFinance ecosystem and the entire hive blockchain, it's a brand new day and a time to differentiate between the current market price of Leo 🦁 and the values created by the ecosystem. It's your friend @faquan saying hello from this part of the world.

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In both the cryptoverse and the traditional financial system, price index of a commodity is determined by the underground work that's effectively carried out by the makers of such commodity.

Judging a project by it's market price is actually deceptive in nature, because a project can have other sub-avenues of value creation that supercedes the actual project itself. This is a typical example of the LeoFinance ecosystem.

When you're trying to value a project like LeoFinance, there are a lot of different metrics to look at. Most people are focused on the surface-level - the actual token price itself. If you look at that as your core metric, LeoFinance is currently valued at $600k (speaking just on LEO itself, not our DeFi branches).Source

Looking at the above valuation of The Leo token, what comes into your mind is how cheap the price index of the token is, but this isn't the true nature of the LeoFinance.

It should be noted that, prior to the current dip season, the value of Leo was about $10M, but the nature of the cryptoverse has brought it down to where it is today.

Don't Judge a Book by its Cover
Anybody that looks at the current price of Leo in the on-chain market at about $0.15 to judge the entire LeoFinance ecosystem is misjudging the ecosystem.

The rate of innovative ideas that's been unveiled into the mainstream LeoFinance community is overwhelming. For instance, we've seen a major in the ecosystem since early March when PolyCUB was launched.

The arrival of PolyCUB in March redefined the entire landscape of the LeoFinance community and this showed the entire cryptoglobal what an ideal DeFiverse looks like.

3 PolyCUB V2 Vaults: 4 Value Accrual Channels
Redefining the PolyCUB project came in as a result of the change in HBD savings rate to 20% in April, which lead to the launching of pHBD-USDC vault.

pHBD-USDC vault can be said to be the bribe or pride of the PolyCUB project. At the launch of pHBD, everything about PolyCUB changed from just creating values through kingdom management fees, to a multi-chain bridge that focuses on value accrual rather than waiting for early harvesting fees to generate additional revenues to holders of xPolyCub.

pHBD-USDC pools is currently at 29% APR valued at about $350k, while the other two V2 vaults are standing at 89% APR worth $154,779 (pHIVE-POLYCUB) and 101.11% APR worth $27270.

These APRs are just mechanisms that creates values to the LeoFinance ecosystem, while there are about 4 value accrual channels for the PolyCUB V2 vaults:

  • HBD - held as 1:1 collateral for the wrapped equivalent - staked on native platform (HBD on-chain savings) = value accrual for PolyCUB's PoL
  • HBD - 0.25% wrap and unwrap fee = value accrual for PolyCUB's PoL
  • HBD cross-chain arbitrage = value accrual for PolyCUB's PoL
  • pHBD-USDC holders need to buy more POLYCUB to stake as xPOLYCUB to control governance and drive the pHBD-USDC vault yield higher

https://leofinance.io/@leofinance/xpolycub-governance-or-our-first-vote-on-yield-dynamics

Apart from the above value accrual channels, LeoFinance growth will also be judged by the numbers of active users that creates traffic within the community.

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Looking at the above image, you'll see that the number of monthly active users in May was above 600, which is pretty cool. The works of those active users is to create contents that encourages traffic within and outside the community, most especially in the other Web 2 platforms.

These contents can attract potential investors to the LeoFinance ecosystem and in turn change the fortunes of the entire hive blockchain.

Posted Using LeoFinance Beta

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Nice article, polycub staking will be great

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Read how this all have started with Toruk

Posted Using LeoFinance Beta

Thanks @onealfa.leo for supporting my post, I appreciate your presence.

Posted Using LeoFinance Beta