Part 2

5) DIRECT COMPARISON

Same 0.1 LBTC → BTC swap, fair value 0.102 BTC:

Pool /// Out (BTC) /// vs Fair
──────────────
Balancer 50/50 (10/10) /// 0.09900990 /// -2.94%
Balancer 50/50 (10/10.2) /// 0.10099010 /// -1.00%
Curve A=100 /// 0.10196979 /// -0.03%
Curve A=1000 /// 0.10199695 /// -0.001%
Cube (vLBTC=10k / vBTC=10.2k) /// 0.10199898 /// -0.001%

Cube matches Curve at A=1000 — without needing a StableSwap invariant. It's a generalized weighted AMM with per-token risk tuning.

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6) WHY THIS MATTERS BEYOND ONE SWAP

In a Cube BTC pool with up to 10 wrappers, each token can have its own leverage matching its real-market price:

- cbBTC (free 1:1 redemption) → leverage 1020
- WBTC (20 bps redemption fee) → leverage 1018
- LBTC (bridge / withdrawal risk) → leverage 1000
- new wrapper (untrusted, high risk) → leverage 600

The pool encodes risk-adjusted fair value per asset. Arbitrage opportunities collapse. LPs farm organic volatility, not toxic flow.

And because it's one pool with 10 assets instead of 45
isolated pairs, routing is dramatically simpler. Arbitrage
volume between wrappers stays inside the pool as LP fees instead of leaking to MEV bots.

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7) THE BIGGER PICTURE — cubee.ee

The BTC wrapper case is one application of a more general design. Cube combines three primitives from the past 5 years of DEX evolution:

- Weighted pools from Balancer (custom token ratios)
- Concentrated liquidity from Uniswap V3 (capital efficiency)
- Generalized invariant control (per-token leverage)

Multi-token pools at Cube reuse the same liquidity across many pairs.

One LP position in a SOL/USDC/BTC/BONK pool serves swap routes for every combination — SOL/USDC, SOL/BTC, BTC/BONK, USDC/BONK. Your capital keeps earning even when individual pairs go idle.

The V3 inactive-bin problem disappears. In standard concentrated liquidity, >99% of deposited capital often sits in inactive bins earning zero. Cube pools route the same liquidity through multiple pairs simultaneously, so idle capital becomes active capital somewhere else in the pool.

For traders: smaller slippage, smart order routing across all internal pairs, deeper effective liquidity than the TVL suggests.

For LPs: leveraged fees ($100 in a 10x pool earns fees like $1,000 in a classic AMM), multi-asset exposure from a single position, no idle capital.

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8) WHAT'S NEXT

A dedicated BTC pool is coming soon, with per-wrapper leverage configurations designed around the math above.

If you've hit real on-chain problems that broke other AMM designs — DM us. We read everything.

Live on mainnet: cubee.ee

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