Welcome Cubed³ fam. Today, we’re going to talk about the treasury and the role it plays in the protocol, including more detailed information on our current and future investments to generate subsidiary yield for Cubo.
Typically, a treasury is a store of valuable goods, assets, or currencies. Every country, organisation, or business has a treasury ready to deploy. It’s used for any transactions from salaries to business costs, and has one or many treasurers responsible for when and how it can be used.
Snapshot and the decentralised autonomous organisation (DAO) movement have taken community involvement to the next level. Every token holder has the potential to make their voice heard and impact the decisions of a project, which includes treasury allocation. Although we have allocated it to begin with, once the voting system is in place, we can assess the community’s choices and make changes where necessary. It was vital to get the treasury up and running as soon as possible, and we felt that the initial voting would take too long, so it has become a secondary task.
Votes proportional to token amount mean that larger holders and whales, who will be more affected by the proposed changes, benefit from more voting power. This might sound deviant and unbalanced but alienating large investors is just not a successful way of running a project. Of course, we will be diligent and avoid offering options that put smaller users at a disadvantage. Having more skin in the game, or money invested, might suggest that whales have a better understanding of the protocol, are more interested in the specific functions, and as a side effect, are more likely to vote or know the most beneficial outcome of the vote. Don’t believe all the moon boys that get dumped on every weekend — whales are our friends.
The Cubo treasury grows every time a node is minted, and decreases when it is allocated to an investment. Specifically, 90% of DAI from node revenue currently goes to the treasury, and this will continue until the treasury hits between $1m-$2m, after which we’re going to reduce it to 50% for treasury accumulation. We know that many projects acquire extra funds through buy and sell taxes, but we don’t plan to implement this. To begin with, we will only hold DAI, because it’s one-half of the CUBO/DAI liquidity pair, and saves some extra transactions happening on both ends. It’s also available to buy on Coinbase, making onramping to Cubo much easier for DeFi newbies. DAI is a cryptocurrency collateralised stablecoin, generated when Ether or other accepted cryptocurrencies are locked in the vaults on Maker protocol. It’s proven it’s worth as a means of exchange for years and means we can rely less on the legacy finance system, and more on crypto. And we have $400k DAI. Nice.
Eventually, we might hold other crypto assets or NFTs in the treasury if they can be farmed for yield. We would also love to get one or many Polygon validator nodes running but this would be handled in the coming months, via a vote. I’m sure some of our community wants to see this solid gold Castello cube in the treasury — maybe we can work something out.
Our priority is to utilise the treasury as efficiently and safely as possible. We’re mainly looking at QuickSwap pools and stablecoin yield farming. They work well in both bull and bear markets plus they’re relatively low risk as far as DeFi is concerned. The APR is stable and there is always a requirement for liquidity pools to be filled. QuickSwap, an automated market maker, can only function with the liquidity provided by LP depositors.
We don’t want to limit ourselves to Polygon’s ecosystem when there are so many opportunities ripe for the picking on other chains. Avalanche and Fantom are showing strengths in recent months, with massive total value locked and users flocking to check out what’s available on those chains. TraderJoe and SpookySwap LPs look interesting, but we’re also on the look out for other NaaS (nodes as a service) protocols that exhibit the right characteristics of success, like StrongBlock. These investments won’t make up the bulk of the treasuries deployment for fear of building a house of cards upon the node ecosystem, but some limited exposure can be beneficial for both enterprises, especially if we catch them early enough. Splitting up our treasury allocation between multiple chains is a great way to diversify and limit downside risk in case of exploits or hacks. If blue-chip cryptos rebound, we might think about stacking some for a rainy day. It wouldn’t hurt to hold BTC when the ETF approval goes through.
On CryptoFrog’s podcast, Bruno mentioned the buyback bot and what benefit it will bring to Cubo. In our last Medium post, we talked about selling pressure having a soft cap as a result of liquidity nodes being minted. The steepest sell off in Cubo was a direct result of private sale and day 1 buyers pulling profit at $5, and since then it’s been a steady grind upwards to $30. What if we could compound that movement?
We want to boost the price action even more by using some revenue to buy back Cubo. As a clarification, this is the second buyback bot that is being considered — the first one, that’s mentioned in the GitBook, will deploy a maximum of 10% of the treasury, if the market price of CUBO has been down significantly for multiple hours, or dumps over 20%. Bot #2 will create a cyclical momentum using treasury yield from node revenue to buy back CUBO and send it to the rewards pool. It’s another notch in our belt to allow investors the freedom to sell as many tokens as they want, every day, without destroying the price. This is all thanks to a deep treasury and owning our own liquidity.
Every day, we’re meeting and teaching new people that want to see what all the fuss is about. Our dedicated community, both on Twitter and Discord, have really shown up for Cubo and we’re glad to have you around. Thanks to you all, the CUBO/DAI chart is, undoubtedly, one of the most beautiful charts we’ve seen in a long time. Probably a biased opinion but at least it’s an honest one. We think it’s common knowledge that charts can’t go up forever, but with a market cap of around $5 million, Cubo isn’t even considered a micro-cap yet — we still fall into the nano-cap category. This is what we’ve achieved in under 7 weeks and we’re not stopping now.
The discord is a great place to keep up to date with all announcements and information from the team.
Twitter: https://twitter.com/cubo_moneyDiscord: discord.gg/cuboGitBook: https://cubo.gitbook.io/cubo-protocol-v0.1/
Check out the roadmap here.
We give away one Nano Cubo (rewards 1 $CUBO per day!) every week to one lucky winner that tweets with the hashtag #cuboDraw. Only one entry per person per week is counted, and the account must be more than one month old. Entrants must own any size Cubo node. Good luck!
Disclaimer: None of the information included in this Medium article should be considered or acted upon as financial advice. Do your own research before investing in any project. Cubo Money and the team will not accept responsibility for the outcomes of your investment decisions.