It’s been a couple of weeks since we released our comprehensive strategy outlining how we’ll become the largest & safest crypto staking platform in the world by 2025. It’s been great to see the positive response and how excited our investors are about everything on the roadmap.
One question I’ve noticed coming up in the community is whether our focus on PegHub.com is us shifting away from focusing on our seigniorage protocols like bitBOMB and CZPegs. A few have asked about why we haven’t explicitly been talking about our plans to strengthen our existing protocols and maintain peg, so I felt it was important to outline some more detail on how our strategy supports this.
To begin with an obvious but important point: the economics of our seigniorage protocols have not changed since all tokens were above peg. However, a backdrop of challenging conditions (traditional markets had the worst H1 in 50 years and crypto had its worst ever bear market) has meant investors are being far more cautious, leading to a decrease in the buying of peg tokens, and a higher volume of selling than we typically see. The migration of Bomb to bitBOMB has also contributed to this as we made the decision to make all investors whole, migrating at a 1:1 ratio with some investors using this as an opportunity to sell.
Although, our farms continue to pay incredible APRs even while under peg, it’s of course a priority to return to and maintain peg. This is key to a healthy ecosystem and allows our advanced investors to benefit from additional gains in our protocol boardrooms! Many of our competitors have introduced quick wins and gimmicks to increase peg – this can give the sense of progress and in some cases achieve peg in the short term. However, these approaches are typically unsustainable and therefore do not form a core part of our strategy. Ultimately, what’s most important is bringing in fresh capital to put buy pressure on our peg tokens, while building investor satisfaction and loyalty to ensure strong retention.
So how does the focus on PegHub.com actually help bitBOMB, CZpegs, and future protocols?
We believe the primary way we’ll bring new investors into our protocols is through providing an unrivalled user experience, breaking down the barriers to entry for less experienced investors. This allows us to expand into new segments and increase our overall market share. PegHub’s simple autovaults provide the perfect opportunity for this and we have big plans to further improve our UI in the coming weeks, at which point we’ll really ramp up our marketing towards the traditional finance/crypto beginner demographic.
The beauty of PegHub’s simplicity is that investors don’t have to understand the mechanics of what goes on behind the scenes nor how the whole peg system works. We’ll always equip investors with the resources to understand this, but we recognise many simply don’t have a desire to get into the details.
For our more advanced investors though, let’s outline how the focus on PegHub.com supports overall ecosystem health:
By bringing funds into our autovaults it puts buy pressure on our peg tokens. The autocompounding feature sells the share tokens that would be paid as rewards in manual farms, and directs these back in to the autovaults, therefore putting more buy pressure on our peg tokens. I’m sure some of you are asking: well isn’t the constant sell pressure on our share tokens bad for the ecosystem? This is partially true – the vaults do put constant sell pressure on the share tokens. However, by bringing in new funds to the vaults and investors growing their stacks, it drives up peg, and ultimately leads to our boardrooms printing consistently. This means investors can earn insane returns through staking their share tokens. Therefore, the share tokens become highly desirable, increasing the buy pressure – in other words it more than offsets the sell pressure created by the autovaults, and also increases the rewards earned by the PegHub investors with increased share prices.
We also find that those who invest in our autovaults tend to stay and grow their bags, whereas those using our seigniorage protocols are more likely to participate in strategies that hurt the ecosystem. Therefore, increasing the focus on PegHub’s autovaults supports price stability. We’ll of course continue to cater to more advanced users and seigniorage protocols will remain part of our offering – you’ll see in our roadmap we’ll be offering these on 4 new chains in 2022 alone and have already expanded to Avalanche with our new offering, SnowPegs.. Expanding to new chains also benefits PegHub users through increasing the number of autovaults we offer. Offering more tokens also brings opportunity for investors to get into farms they wouldn’t normally find. For example, if someone is looking for high returns on BTC, they can come to PegHub and also find high returns on BNB thereby helping with CZpegs tokens.
We’ve heard a lot about the PHUB token – how does that help the ecosystem?
PHUB is a limited supply, revenue-sharing token that offers a simple way for investors to benefit from our overall success. Token allocations that previously went entirely to Aaron, our founder and lead dev, have instead been repurposed to benefit PHUB holders through automatically buying tokens on the open market (constant buy pressure and increase in price) and distributing them as rewards to stakers, along with building liquidity to support price stability.
You’ll notice that we don’t put a huge amount of focus on marketing the PHUB token itself. That’s because we believe the tokenomics and increased revenue from all our roadmap items will naturally lead to strong price appreciation. Our core offering centres around providing great returns on blue chip crypto – the more we help investors enter our ecosystem, the healthier all of our protocols become, and the more PHUB will soar!
We have some HUGE announcements coming that will drive significant investment into our ecosystem and know from past experience that once capital starts to flow in, FOMO takes hold and things begin to take off very quickly. We’ll be sharing more details on this very soon!