Building Passive Income On Cub Finance: Farms and Dens

I'm probably too late to write something about Cub Finance since it was launched about 18 days ago, March 8, 2021, to be exact, but I think it's not yet too late to build a passive income on that platform, especially that it is still new and promising.

What is Cub Finance?

"CubFinance is one of the first DeFi products launched by the LeoFinance project. LeoFinance is a blockchain-based social finance community that has been building applications on a variety of platforms and blockchains since July 2019. Cub is a yield farming application with new utilities being added regularly like the LeoBridge which allows for cross-chain swaps through their CUB exchange."

-CoinMarketCap.com

When I read about this new project from PVM's article, I immediately took the risk to stake my idle cryptos on this new project. I felt like I missed out on the huge opportunity of building passive income on Pancakeswap when it was launched in September last year because CAKE's price back then was still very cheap compared to its current price. So when I heard about Cub Finance, which is almost comparable to Pancake, I decided to farm and stake my cryptos here.

They say "high risk, high reward". But if you're also planning to stake and farm your cryptos on Cub Finance, always remember to invest at your own risk and only invest what you can afford to lose.

Building Passive Income on Cub Finance

Cub Finance has two ways of generating passive income, which is called the "Farms" and "Dens".

On Dens:

If you currently have cryptos like BUSD, WBNB, USDT, BTCB, ETH, DAI, USDC, DOT, or CAKE, you can stake these tokens on the Dens to earn CUB. You can also buy CUB to stake it there to earn more CUB.

To stake, you just need the tokens I have mentioned above and a little amount of BNB for your transaction fees on your Trust Wallet, click the DApps, search cubdefi.com on the search bar, make sure that your Smart Chain wallet is connected, click the 3 lines or navigator bar on the left, go to dens, choose your desired den where you want to stake your token to, click Approve contract and pay $0.16 of BNB fee, click "Stake" then the Add or Plus sign, click "Maximum" or the desired amount you want to stake, click confirm, approve the transaction then pay the Network fee of $0.63 BNB, and it's done.

The process seems difficult and complicated but it's actually just easy when you're already doing it.

When you stake your coins, except for the CUB token, there is a Deposit Fee of 4% which will be used to buyback CUB and bLEO. Personally, the 4% fee is too much and it hurts my deposited coins.

When it was lauched, the APR is high up to 16K% on each token. But as days go by, the APR went down to normal and is now ranging from 100% to 200%. The token that gives the lowest APR is BTCB with 60+% and CAKE has the highest APR with 250+%, as of this writing.

On the Dens, I'm currently staking my CAKE, DOT, ETH, and USDT, to take advantage of my idle coins while waiting for my desired price for them, except for the stable coin. I'm also compounding the CUB earned from these tokens to generate more CUB.

On Farms:

Farming is a little bit riskier compared to Staking because when you provide liquidity, there is an impermanent loss.

"Impermanent loss happens when you provide liquidity to a liquidity pool, and the price of your deposited assets changes compared to when you deposited them. The bigger this change is, the more you are exposed to impermanent loss. In this case, the loss means less dollar value at the time of withdrawal than at the time of deposit." -Binance Academy

However, just like what I've said, the higher the risk, the higher the reward, so I also decided to add liquidity and farmed my CUB-BUSD LP and USDT-BUSD LP.

To farm, you first have to add liquidity to receive LP Tokens. Make sure that you have equal value of tokens when you provide liquidity, like $50 of USDT and $50 of BUSD. Click supply then Approve the contract. After you receive your LP Tokens, go to the farms, search for your LP Tokens farm, and do the same process in staking in the dens.

After almost a week of Farming and Staking on the farms and dens, I was able to earn 41 CUB. Currently, 1 CUB is equivalent to $2.97.

I am planning to harvest my CUB earned at the end of this month to track how many CUBs will I be able to earn in April, as part of my monthly Passive income.

There you have it! Staking and Farming on Cub Finance is a great way of generating passive income. It's letting your money/crypto work for you. But with the great reward comes the great risk, so don't put all your money in there.