Right on the [LPUD day](https://leofinance.io/@gadrian/leo-power-up-day-let-s-make-leo-great-again), the Leofinance team came forward with a [major upgrade for PolyCUB](https://leofinance.io/@leofinance/introducing-polycub-v2-or-vexpolycub-governance-ui-pip2-multi-token-bridge-and-buybacks) as well.

Of the things Khal has been talking about recently, that could be bundled together and released at the same time, bonding and [collateralizing](https://leofinance.io/@leoglossary/leoglossary-collateral) (ve)xPOLYCUB are not part of this upgrade.

What however we can find in this upgrade is this:
> -- Multi-Token Bridge
-- vexPOLYCUB
-- POLYCUB DAO
--- PolyCUB Improvement Proposals (PIPs)
--- Yield Governance
--- Governance UI
-- Buybacks & Surplus/Deficit Model

## Multi-Token Bridge

To be honest, I didn't understand from the post what is new regarding the multi-token bridge, because the pHBD, pHIVE, and pSPS bridges to the existing [Hive](https://leofinance.io/@crypto-guides/what-is-hive-crypto-hive) [assets](https://leofinance.io/@leoglossary/leoglossary-asset) already existed.

I thought it might've been the user interface for LeoBridge, but no, that still points to the one on Cub Finance which bridges [ERC-20](https://leofinance.io/@leoglossary/leoglossary-erc-20) to BNB-20 [tokens](https://leofinance.io/@leoglossary/leoglossary-token).

But let's move on because most likely I missed something here.

## vexPOLYCUB

Now, that's an important addition to PolyCub. It basically introduces another tier to POLYCUB [staking](https://leofinance.io/@leoglossary/leoglossary-staking), for the most loyal and long-term investors in the platform.

We can think about this as a three-tier process.

At tier 1 you have **POLYCUB** in its [liquid form](https://leofinance.io/@leoglossary/leoglossary-liquidity). Holding POLYCUB unstaked doesn't earn you any rewards.

At tier 2 you have **xPOLYCUB**, which you receive when you stake POLYCUB, at a certain ratio, which never drops and slowly goes up. xPOLYCUB is liquid in the sense you can at any time unstake some and receive the corresponding POLYCUB immediately. For holding xPOLYCUB, you (still) receive a portion of the inflation generated (currently 66.11% APY). Why still? Because on PolyCub inflation halves monthly until it becomes irrelevant.

At tier 3 you have **vexPOLYCUB**. Its name comes from Voting Escrow POLYCUB. You receive vexPOLYCUB if you stake xPOLYCUB. Like in the case of staking POLYCUB for xPOLYCUB, there is a ratio between xPOLYCUB and vexPOLYCUB which starts at 1:1 and follows the same mechanic as the one for POLYCUB and xPOLYCUB, meaning it should slowly go up in time.

The difference between vexPOLYCUB and xPOLYCUB is that you have a locking period for vexPOLYCUB. It is for 2 years from the release of the new feature, so it doesn't count from the time when you stake. If you stake xPOLYCUB to vexPOLYCUB 6 months from now, you only have 1 year and a half left from the locking period.

The benefits of vexPOLYCUB are:
* fixed 20% APY (on top of the APY xPOLYCUB still receives from inflation) - this APY doesn't come from inflation, it comes from buybacks, so as long as the **[Protocol](https://leofinance.io/@leoglossary/leoglossary-protocol)-Owned-Liquidity (PoL)** has funds to buy back POLYCUB from the [market](https://leofinance.io/@leoglossary/leoglossary-market), you get a fixed 20% APY for vexPOLYCUB
* 3x your voting power for [governance](https://leofinance.io/@leoglossary/leoglossary-decentralized-governance)

Obviously, the drawback is that you can't unstake vexPOLYCUB before the lock period passes.

## POLYCUB DAO

PolyCub's [Decentralized Autonomous Organization (DAO)](https://leofinance.io/@leoglossary/leoglossary-decentralized-autonomous-organization-dao) gives control over the yield distribution and other aspects to the xPOLYCUB and vexPOLYCUB stakeholders.

Voting on [yield](https://leofinance.io/@leoglossary/leoglossary-yield) distribution has been already possible for some time. But without a governance UI, the participation in voting was rather reduced.

Well, now we have a **governance UI**, where we can vote for our preferred farms where to increase inflation. The more vexPOLYCUB and xPOLYCUB you have, the higher influence you have.

#### If you had previously expressed your votes on this matter, know they have been reset with the introduction of the governance UI, and you should vote again!

![image.png](https://images.hive.blog/DQmaTT2vNrYdhRxqJ3oScqKDxVPbzWqwTDyUpRcFEZcG1ST/image.png)

PolyCub DAO also includes **PolyCUB Improvement Proposals (PIPs)**. The first one we can vote on asks us to increase wrapping fees or leave them as they are, and is active until July 21st. The options are:
* leave them as they are (0.25%)
* increase to 35%
* increase to 50%

Why would anyone want the wrapping fees increased? Because they represent revenue for the PoL and therefore improve the long-term perspective for the platform.

The team mentioned other such PIPs will follow.

## Buybacks & Surplus/Deficit Model

We'll have to see what exactly they mean by this model. The keyword seems to be the allocation of yield more **efficiently**. There will be a proposal later on where probably we'll understand more about it.

## Final Call to Action!

If you have a [stake](https://leofinance.io/@leoglossary/leoglossary-staking) in PolyCub:
* cast your votes for yield distribution again using the [governance UI](https://polycub.com/governance) because they were reset
* vote on the first improvement proposal since the governance UI was launched

Posted Using [LeoFinance <sup>Beta</sup>](https://leofinance.io/@gadrian/polycub-received-a-major-upgrade)