It's a new day and I bring you greetings from my family. Good morning to all the Lions on the LeoFinance ecosystem. Peace be with you all.

![image.png](https://i.imgur.com/6ASDx7h.png)<center>[Source](https://leofinance.io/@leofinance/introducing-polycub-v2-or-vexpolycub-governance-ui-pip2-multi-token-bridge-and-buybacks)</center>

It's already 5 days since vexPolyCub went live and I tell you the truth, it's been joy all the way. This can be seen in the mass migration of xPolyCub into vexPolyCub, amounting to about 40% within the first 48 hours of it's existence.

I think these 40% of xPolyCub that has been migrated to vexPolyCub are mostly owned by Lions 🦁 who knows how the PolyCUB protocol works, while a very few % came from people who were advised by their some Lions who knows how the system works.

It should be noted that the remaining 60% of xPolyCub will take some extra explanation from both the LeoFinance team as well as conscious efforts of everyone on the LeoFinance ecosystem to make before It'll be migrated into vexPolyCub. Please don't judge my statement wrongly.

What the above means is that many will want to see practical steps before they can invest in vexPolyCub. Just remember the early days of PolyCUB and how many asked the question, who will buy PolyCUB after one year period?

One of the question many will ask is this, how does vexPolyCub intend to generate it's fixed 20% APY for holders?

One way to answer the above question is through the buybacks strategies. Below is the explanation of how the buybacks work as documented by @leofinance:

>The Multi-Token Bridge, Protocol Owned Liquidity and Kingdoms Fees all generate revenue for the protocol. That revenue is autonomously deposited into Protocol Owned Liquidity (PoL).
A % of that revenue is used to buyback POLYCUB and deposit it into the vexPOLYCUB Vault for all vexPOLYCUB stakers. The amount of that revenue that is used to buyback POLYCUB and deposit it in vexPOLYCUB is dependent on how much vexPOLYCUB is staked. For example, if $100,000 USD is staked in vexPOLYCUB, then $20,000 per year worth of POLYCUB will be bought regularly and deposited into the vault.[Source](https://leofinance.io/@leofinance/introducing-polycub-v2-or-vexpolycub-governance-ui-pip2-multi-token-bridge-and-buybacks)

Everything around PolyCUB is actually linked to the PolyCUB owned liquidity (Pol) and this Pol generates revenues from different angles of the PolyCUB protocol, which some percentages will be used to buyback PolyCUB and deposit it in vexPolyCub. These deposits will be shared among the holders of vexPolyCub according to their stakes. This revenues generated from Pol will vary in values monthly.

**Why is the buybacks going to work?**
With vexPolyCub out there, holders have given up their liquid xPolyCub that should've been sold at random every month. This restrictions placed on the liquid xPolyCub, gives the Pol better chance to buyback the available PolyCUB in the protocol, than it would have been sold by users each month. The surplus over the amount of PolyCUB will be autocompounded into PoL, which leads to future autonomous buybacks.

I hope with the above explanations, your fear about how vexPolyCub intends to generate it's fixed 20% APY for holders is taken care of. Rush and get your desired quantities of vexPolyCub.

Posted Using [LeoFinance <sup>Beta</sup>](https://leofinance.io/@inspiredbyhive/how-does-vexpolycub-intends-to-generate-it-s-fixed-20-apy-for-holders-buybacks)