That’s a great question! Volatility will actually have a massively important impact: the volatility creates huge LP trading fees which will make the APR for being an LP highly attractive.
On top of that, the volatility will lead to a lot of arbitrage volume which ultimately drives value accrual to POLYCUB. Since pHIVE is paired against POLYCUB, that will mean that the pHIVE-POLYCUB pair will get more and more valuable with time as it’s paired to a scarce asset accruing value from 10 V2 vaults like pHIVE-POLYCUB
How will the price fluctuations of HIVE and POLYCUB affect the mechanics of this liquidity, both tokens being very volatile?
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That’s a great question! Volatility will actually have a massively important impact: the volatility creates huge LP trading fees which will make the APR for being an LP highly attractive.
On top of that, the volatility will lead to a lot of arbitrage volume which ultimately drives value accrual to POLYCUB. Since pHIVE is paired against POLYCUB, that will mean that the pHIVE-POLYCUB pair will get more and more valuable with time as it’s paired to a scarce asset accruing value from 10 V2 vaults like pHIVE-POLYCUB
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Good to read this explanation. It really soothed my worries. In fact, I just noticed that POLYCUB is on an upward price journey of no return.
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I strongly await to see how we this will of great advantage to the token too
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5 methods of value accrual! Watch as they take shape in a BIG way
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