Don't Defy De-Fi - Awaking the giant inside the dens of CubFinance
3 min read

Don't Defy De-Fi - Awaking the giant inside the dens of CubFinance

Harvest Finance, Goose Finance, Pancakeswap, Uniswap...man I'm getting hungry just reading about decentralised finance. It's been on my mind for a long time to look into De-Fi, the APYs are mind-blowing and sometimes I still cannot grasp it as someone who comes from the traditional finance world.

Given my recent addiction to LeoFinance I keep reading articles about CubFinance here, here and here. I decided that I will once and for all learn more about it. DYOR. I probably watched a dozen youtube videos, read the official docs (even though most of it was alien-speak to me at first), went onto Reddit, and read more articles on Leo.

Understanding the potential risks in Impermanent Loss for Farms, I decided for my first rodeo, I will keep my cubs in dens. Much safer that way. The APY for staking Cubs in dens is about 123% (give or take). So I went onto Binance, bought some BNB and swapped in the CubFinance exchange for some Cubs. I won't bore you with all the details about how to do it because there are plenty tutorials that cover this topic, but I did want to share my experience on why I chose CubFinance over all the other de-fi platforms out there.

The Case for CubFinance

CubFinance launched on the 8th March 2021. The current market cap of CubFinance is $5.8M and the total value locked is $18.5M. If I compare to a project also on Binance Smart Chain such as PancakeSwap, which has a market cap of $6.5B and a TVL of $5.2B, CubFinance seems like an infant and a drop in the ocean. This is good news in my view as I think it means there is still a long runway for CubFinance. I mean it's only been a month so give it some time.

In no way do I think CubFinance will dethrone some of the current King/Queens of Defi, but even growing to 10x or 100x the market cap doesn't seem out of reach.

From my research, I can also point out a few point of differences and why I decided to invest in CubFinance instead of PancakeSwap for example:

  • CubFinance devs are not anonymous - yes I know the argument has been made about Satoshi being anonymous etc but given the decentralised nature of BTC, it doesn't really need the OG dev to do anything. Whereas for de-fi, constant upgrades are made to make the services perform better and more secure, so the development of the software behind is centralised in a way, so I want to understand who is building it.
  • Track record - CubFinance is linked to the Hive and LeoFinance ecosystem which has been around for more than 2 years. It sounds like a small number but in crypto there is a lot that can happen in 2 years. Projects either crash and burn or rise from the flames. I'm quite happy with my experience so far on LeoFinance and feel like it's a very strong community behind these projects.
  • No Rugpull code - I didn't even know this was a thing until I read about it in the CubFinance docs. Although I have some questions about its removal, as devs on PancakeSwap defended that part of the code alluding it as "a necessity for upgrades to the platform". I'm not sure if anyone on LeoFinance can let me know how CubFinance is looking to perform upgrades to the platform without this code or whether it has been thought through. For now I'll add it as a positive.

Final Takeaway

In the de-fi space, you can really only make returns and count on the enormous APYs if the token itself holds value and if the devs won't run away with your funds. It is difficult to project what my future returns look like on CubFinance, but for now, I know the devs are working hard on future releases and won't be doing a runner anytime soon. Sleep tight my little Cubs.

Until then, keep stacking!

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