Why does Leofinance have so many tokens and how do they create value for investors?

shortsegments (76)in LeoFinance • 2 years ago (edited)

Introduction:

I read a post by @bala41288 today asking some very good questions about the project. In the post he questioned why the increasing number of tokens, expressed concern for the current coin values, and asked what is the plan to create value for the Leo token, Cub token, and why is Khal doing all these many projects, instead of focusing only on Leo token.

So I wrote a comment, in reply, but it made me think and I decided he is probably not the only one with these questions. We all should research our investments with a objective mindset. And those of us who have been here from the beginning, should have a good idea of what the big picture is here. So we can help newer members of our growing community. Plus I realize that I try read all Khal’s posts, but perhaps not everyone has the time to find, read and process all his posts, and read the Cubfinance documents.

I would propose these answers to those questions:

If you read the so called experts on cryptocurrency valuation they usually say cryptocurrency tokens are valued based on three things:

Community
Developer Activity
Utility

Community

Khal is dedicated to building the Leofinance community tall and wide.
This includes investors on Ethereum, Hive, Binance Smart Chain, and in the future Avalanche and Thorchain.
I think Khal has successfully built a large and loyal community here on Hive.
‘I think the success of the wLEO-ETH Liquidity Pool on Ethereum suggests a Successful first off Hive community. Several special features allowed investors not on Hive to earn Ether, and Leo, which was paid to them through their MetaMask wallet in Ether, thus enlarging the Leofinance Community to include investors only interested in Ether, but introducing them to Leofinance, Hive and the vibrant ecosystem being built on Hive, Hive-Engine and the other projects like the NFT stores.
I think that the Total Value Locked on Cubfinance of 13 million at its height and around 4 million today suggest a growing Leofinance community on Binance Smart Chain DeFi ecosystem. This gave investors from Leofinance, Hive, and Ethereum a chance to invest on Binance Smart Chain in a new DeFi ecosystem with large APRs and smaller transaction fees then the Ethereum DeFi ecosystem.
I think the Total Value Locked on PolyCub on Polygon suggests a growing community of investors on Polygon. And in a continuing theme this gave investors from Leofinance, Hive, Ethereum and now Binance a chance in a new DeFi ecosystem with large APRs and smaller transaction fees then the Binance Smart Chain.

Developer Activity:

Leofinance started with a small developer team, and has grown to be a big team of around 12 developers.
This has resulted in a large amount of activity with several new projects; onboarding webpages, onboarding tools, web page functionality revisions, and several new projects.
I think an outside observer will see the Leofinance developer team is very busy both improving existing projects on the Hive Blockchain, Ethereum Blockchain, Binance Smart Chain, and developing both new projects on the Polygon blockchain and also Avalanche and Thorchain. Plus the team is busy developing a short form content blogging site, more like Twitter, but decentralized and driven by token rewards instead of advertising and selling data.
This is an amazingly large amount of activity, and a unique and fascinating aspect of it is it’s based on the idea that the future is in cross-blockchain connectivity.
The world famous Ethereum blockchain was built on a proud heritage of decentralization and smart contracts. For many that meant one blockchain to rule them all. But that idea has faded and now the founder states loud and clear that the future is two big for one blockchain. The future is blockchain inter connectivity and he started the developer groups for second layer solutions, one of his groups was Polygon.

Utility:

Leo token

The amount of utility of Leo token is amazing.

A Reward Token on Leofinance: Leo began life as a social media project reward token on the community called Steemleo, on Steemit, and later, a reward token on Hive after the fork.

Leo then became so much more…

Leo became wLEO, a defi token on Ethereum.
Leo became bLEO, a DeFi token on Binance smart chain
Leo became pLEO, a defi token on polygon
Leo in the future will be a DeFi token on Avalanche
Leo in the future will be a DeFi token on Thorchain
All these Leo tokens are an integral component of Leobridge.

LeoBridge is worthy of a post by itself!

I think that the Leofinance project has all three of these important factors: community, developer activity and utility, which are used to measure value.

But the utility of Leo as a vehicle for investors to move the value of their investment capitol between blockchains safely and cheaply is a big utility, and a big value.

I think it deserves more detailed explanation as it goes to the heart of the answer to your question.

The future of DeFi is said by many to be dependent on inter blockchain connectivity. DeFi is to big for one blockchain. The proliferation of DeFi to multiple

I think the three tokens are part of Khals vision for Leofinance to reach out beyond the Hive blockchain, and create a big community on multiple blockchains, using a a token with a unique utility, that utility is to provide trustless transfers of value between blockchains.

I think it’s fair to ask why that’s important?

I think DeFi has taken the financial technical nexus by storm. There are many people making generous amounts of money in DeFi, but DeFi has a fundamental problem of transferring value across blockchains to allow investors to move their capitol safely from one blockchain to another where the financial opportunities are better.

Khal is proposing to provide a solution to this very prevalent problem. It is one of the complexities of cryptocurrency. The solutions are bridges, and bridges are complex, prone to manipulation, hack and expensive.

Khal proposes a trustless, solution to moving capitol between Ethereum, Binance, Polygon and Hive. This is a big project, and in time it will also include Thorchain, Avalanche, and other EVM blockchains with DeFi investment opportunities.

This means that the utility of your coins is providing a medium of exchange, moving value between these blockchains. This utility and some scarcity of a small market cap coin, should increase the value.

Why wLEO, Cub and PolyCub ?

Earnings

It’s somewhat reductive to simply state those coins are about earnings, but that’s one of the reasons we are here. I am here to build a future of financial independence. Cryptocurrency is one of my streams of income to set me free from the cycle of trading time, the units we use to measure life, for money. Additionally, it is about creating an income producing job or career dependent mostly, mostly, on my efforts and work output, quality

Second, I look at Cub and PolyCub and notice that the Cub Air drop, free money, was based on investors holding Leo. And the air drop of PolyCub, once again free money, was based on holding Cub.

Third, Khal has stated that future tokens on Avalanche and other blockchains will also provide air drops, or free money, to Cub holders.

Fourth, Cubfinance and now PolyCub has given All Leofinance community members, on all four blockchains; Hive, Ethereum, Binance and now Polygon, the opportunity to make money due to early access to high APR DeFi investments.

Building the community

Every DeFi project on another blockchain attracts investors from that blockchain to Leo, Leofinance, Hive-Engine and Hive.

Every DeFi project builds the community wider and includes people from blockchains who have never heard of Hive or Leofinance, and now that they see everything the community has to offer some will stay and build their dreams here.
#scaredycat

Unique Tokens

I have observed the evolution of Cubfinance and the Tokenomics of Cub, as Khal tries to find a sweet spot in the hybridization of the successful coins or coin projects in existence. As my parents would say, take the good things from older successful cryptocurrency DeFi projects, and attempt to breed out or software code out the bad things.

This has brought us to PolyCub, a token which is created to accumulate intrinsic value as it ages, making it resistent to market whims and the inevitable ebb and flow of yield farming capitol; most yield farms experience a huge influx of capitol during the early days of high APRs and then experience an outflow of capitol, as those investors just seeking yield for yields sake leave the project once APRs drop down to earth and sell or dump large amounts of tokens.

Khal is attempting to support the value of the token by having the token protocol buy up its own liquidity, through protocol owned liquidity. This reduces token dumping with downward price pressure, along with creating scarcity by tying up tokens for the long term, as in permanently, in liquidity pairs. As we know scarcity increases token prices, and buying pressure increases token prices, so this is an active and new way to increase token price, the final objective measure of value.

The opportunity

I think we have had a wonderful opportunity to create multiple streams of income by being active here on Leofinance and Hive.

Summary:
I hope this answers the questions that many investors may have about the project. I am sure that I left out some things about the project, but I think this summary is brief and hits the high points. Please feel free to add to it, or react to it below.