The second iteration of HBD bonds just had its maturity date reached and was paid out to the bond’s buyers. They all received the funds as projected.
The second batch of HBD bonds as per the announcement post from February 26, 2024 was sold out in a week.
The sale was for a 12k HBD, offering a 10% premium on HBD interest, or currently a cumulative 30%, for a 100-day lockup, in tranches of 10x200 and 10x1000. If the funds are withdrawn prior to the maturity date, the bond buyers receive only the principal without interest.
The accounts that bought the bonds are as follows:
| Account | Bonds Bought [HBD] | Bonds Buying Date | Maturity Date | Expected payout |
|---|---|---|---|---|
| @newilluminati | 5,700 | 2/29/2024 | 6/8/2024 | 6,168.5 |
| @dannyshine | 2,100 | 2/29/2024 | 6/8/2024 | 2,272.6 |
| @deanliu | 2,000 | 2/27/2024 | 6/6/2024 | 2,164.4 |
| @freecompliments | 1,000 | 2/26/2024 | 6/5/2024 | 1,082.2 |
| @techcoderx | 400 | 2/26/2024 | 6/5/2024 | 432.9 |
| @trostparadox | 200 | 2/26/2024 | 6/5/2024 | 216.4 |
| @randumb | 200 | 3/3/2024 | 6/11/2024 | 216.4 |
| @kenny-crane | 200 | 2/26/2024 | 6/5/2024 | 216.4 |
| @dkid14 | 200 | 2/27/2024 | 6/6/2024 | 216.4 |
A total of 9 accounts took participation in the sale.
Bonds Parameters
This sale was 12k HBD locked for 100 days. There was extra premium of 10% from me on top of the current 20%, or a total of 30%.
The tranches were in $1000 and $200. A 10 sets of $1000, and 10 of $200.
There is early withdrawal penalty, if someone wants the funds earlier, they can have the principal but lose the interest. In the case above none of the account made early withdrawal so they all got the full interest as projected.
For this sale I bought Bitcoin with 1500 HBD, in a period of three months, each month with 500 HBD. I also put the @yield.reserves account as a beneficiary for the post rewards.
Aftermath
The total yield of 30% for 12k on a 100 day basis is 986 HBD.
For a 20% it is 658 HBD. A 329 HBD extra that the project needs to make up. But because I have used some of the funds to buy BTC, not all of the 12k were yielding 20% in the period. The base yield come up to 575 HBD.
Next the BTC buys. The buying was monthly for 1500 HBD. When I sold it, I got 1809 HBD, so earnings of 309 from BTC trade.
The post rewards come to around 100 HBD in earnings.
When we sum the above we get:
- HBD interest earnings - 575
- BTC trading - 309
- Posts rewards – 100
- Early withdrawals – 0
A total of 984 HBD earned, that is almost the same amount that is needed of 986 HBD. So this second round of bonds sale is neutral, meaning the project has made enough funds to cover the expenses for the extra 10%. For the first sale I needed to cover up some 100 HBD. We are making progress here :).
Disclaimer: I must said that I’m not totally sure about the BTC trading activities, and the amount there might be different. Will track this much closely in the future.
Sustainability
I have written a whole posts about ideas of sustainability. In short, the options are inflation, trading, fees, lending, staking, ventures. For more details visit the post.
In the first sale I have partially implemented fees with the early withdrawal and in the second sale I have used the trading option with small steps. Inflation is also partially implemented from the Hive inflation and the posts rewards. A real boost for this can be issuing new asset, aka token for the project, but this is far in the future for now. I want the project to have some assets and success behind it, before doing this.
Next Sale?
I do plan to do a next sale. It will probably be at the end of June, beginning of July. I will make an announcement post a few days before to give everyone enough time to prepare funds. I also want to analyze the previous sale and see what can be improved in the next iteration. Buying Bitcoin has shown to be a good step, but obviously the time period is short. It will need some improvements, workarounds etc. Probably in the direction of never selling it but using it as collateral to borrow against and use the loan to paid back interest. Will see. The bond buyers will always get their interest, even if the project is temporarily negative. A lot of options on the table!
All the best
@dalz
Thanks for doing this again. Excellent value for us. Looking forward to how this develops
Thanks for participating!
It's impressive how the project managed to balance the bond's interest rates and cover expenses. Looking forward to the next sale and seeing how it evolves. Thanks for always sharing such detailed statistics Dalz you're the best 👌
Thank you!
You're most welcome brother, always looking forward to your next blog💯🥰👌
Excellent work. I had doubts that you could balance the investment but I was pleasantly surprised.
Partly it is luck becouse of the timing, buying and selling BTC ... could have gone the other way...
This is amazing. In my language there is an adage that says"money is needed t make more money".
30% for a 100 day is massive interest
Keep in mind that it's 30% APR, not 30% for 100 days.
I hope I’m able to get some money by the time you want to do the sale again in the beginning of July
This is actually tempting
Interesting outcome - although there was luck in timing the BTC trading, I'm still surprised that it worked out so closely! In the future, a mixture of safer and riskier assets might be interesting options to keep this going. I'm certain you've got things in mind already. Looking forward to seeing what's next!
Tnx!
Almost :)
I was happy to buy both of your bond offerings. With this post's payout you will be in Profit!
Looking forward to see what you do next.
Imagine the possibilities! 😍😍 But small steps at the beginning... Thank you and I will keep investing if I don't miss the notifications... 😆
Tnx!
This is a good offer and we all should participate in it so we can get more APR.
Ooh wow
I never knew there is a project like that on here. It’s really good and what’s the minimum we can join with?
Last sale minimum was 200 HBD... next one, to be determained :)
!ALIVE
I really want to participate in the July edition and I hope I have some cash ready