I had some spare HP to delegate (Around 1000) and I was searching for the highest APR that I could get in terms of daily rewards.
I researched whole of ecosystem and delegated once or twice before stumbling on ecency.
Let's go through it by order
Delegation - 1
I first came across @leo.voter giving an impressive 16% APR payout DAILY in Leo which was probably the best decision I ever took because it introduced an whole community to me of finance and I fell in love , got lost in it. If you go through my posts for the last month you'll see most posts on Leofinance. It introduced me to an ecosystem of layer 2 tokens I wasn't aware of. As a matter of fact I loved Leofinance so much that I ended up buying approximately 200 USD worth of Leo and having a current leo power of 1850 + LP but that is another story for a different post.
Even though you can earn 10-14% more by staking your earned Leo, it would be really hard to make money curating without investing and having a significant stake at first . (I was getting around 2 -2.50 LEO daily from @leo.voter which by itself isn't enough to build your LP for a countable vote)
Hence, we will keep that thing out of our calculation here since we are purely calculating the direct daily return from delegating 1000 HIVE which is 16% final.
Delegation - 2
I was certain that 16% APR daily is the best the Hive can do in terms of daily rewards. The only exception would be to power down ,buy HBD and lock it for monthly interest payments in HBD at 20% APR but due to religious restrictions ( I am a Muslim) I cannot even think about it .
After few weeks of using ecency I saw they too have ecency points/token pegged at 500 coins per 1 USD and they provide 10 points per 100 HP delegated and 100% curation reward paid out daily as well..!!
I took my calculators out and saw it a better deal. Undelegated to @leo.voter (Sorry , I still love y'all tho) and delegated to ecency.
It hasn't been a week properly but let me show you my rough calculations about it .
There are 2 scenarios to it.
We will consider an average Hive price of $0.80 per token for ease of calculation.
Scenario - 1
Daily curation rewards = 0.22 Hive approximately
Daily points = 100 .
Yearly curation rewards = 80.3 Hive
Yearly points = 36500 points .
Yearly points valued in USD = 73 USD = ~ 91 Hive
Total yearly rewards = 80+91 = 171 Hive
Average APR = 17.1% .
17% is fixed if you decide to nothing with your ecency points and just sit on it to sell them when market starts (I don't know where to sell them and I haven't bothered because I will be using scenario - 2 all the time)
Scenario - 2
Now ecency allows you to boost your posts with your points .
Currently you can get a $1 upvote for every 150 points (Remember this isn't a guaranteed upvote on every post you boost since it is manually curated. It should be well written, not plagiarized etc. But don't worry if a upvote doesn't happens within 24 hours your points are refunded in full and you can try again on another post)
You can use at max 500 points ~ $ 3.33 upvote on one post.
The interface for boosting isn't complicated and is fairly easy .
Now, considering you are serious about hive and deliver consistent , high quality posts while all your yearly points as upvote . The APR then stands at.
Daily curation rewards = 0.22 Hive approximately
Daily points = 100 .
Yearly curation rewards = 80.3 Hive
Yearly points = 36500 points .
Upvote value per 150 points = 1 USD
Upvote value for 36500 points = 243 USD - 121 USD (50% curation) = 121 USD ~ 152 Hive per year.
Total yearly rewards = 232 Hive
Average APR = 23.2% ...!!
This is by far the highest APR in my opinion that one could get considering risk, daily payments + potential post promotion as well.
Obviously, this is my current view and I am always looking for bargains every time so if they decide to change their reward system significantly in the future then it may change my POV about them as well . Until then kudos to @ecency and it's developer @good-karma .
Upvote and comment on this post to support my blog. It means a lot. Any suggestions or tips are welcomed as well.
Take care. Peace out.
Is ecency poin can be (allow) sell to other hiver?
Yes we can transfer it and you can ask payment for it. Currently I do not know of any active market for it .
Not a bad option to get 100 points a day and get, given other activities, a dollar of votes.
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Yes , not bad indeed.
It's not just...not bad, it's...excellent!)
Thanks for the run down, I really need to look into some of these delegations. It's a great bit of passive income.
My current goal is to reach 500HP and from there on I want to start Delegating.
!PIZZA
Hope you reach it soon.
That is the great thing about Hive, there are a lot of options for people. Some will opt for LEO, others Ecency.
It is similar to my post about the comparison between HP and HBD. Now we have two choices.
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Yes , the options are the only things making it different.. I just hope the quality remains while the quantity of options are increasing.
It's quite amazing to see what others have done with their delegations and the APR on ecency is pretty amazing if you add in the vote value. In the worst case, you could always just turn your delegation returns into LEO and still come up ahead.
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True . Leo will always be there.
Nicely worked through and written up. Like you, I'm a fan of ecency points and make regular use of mine. I also suspect most people don't fully appreciate how useful and valuable they are.
Thanks. I actually like being a early member of a underdog system . Sudden explosion will just depreciate the vote value for points imo.
Yay! 🤗
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I make use of Ecency to post , comment and activities also it is a dapp to use
That is great
Why not Hbd because its compounding?
HP is compounding aswell x)
I read because this.. 😊
Spot on.
I read that aswell, but why cant muslims compound?
It is not just compounding it is about earning interest. Interest is not permissible for us. As for the Hive power we earn by curating which involves a transaction of rewarding (Paying) the author of the post , we get paid for rewardimg other users which makes it not a direct interest income.
Basically, any income that is earned as interest by lending (on any platform fiat or crypto) is haram for us which is why even though we earn HIVE or HBD which are printed out of thin air the "transaction" of upvoting makes Hive rewards not interest.
I think, not all of 'ulama say to haram, right?
It is haraam brother. :)
Thats a bit confusing since you earn 2,8% Interest on HP without upvoting or anything. which is compound interest just like Hdb oO
I know , will give that to charity once it is credited. I think it is automatic and cannot be stopped . Please ping me if you know anyway to stop that appreciation.
Okay cool cool, yes its automated and no, I dont think kt can be stop :/
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I'm intrigued by this.
I understand that as a muslim you're not allowed to "earn interest".
But isn't earning rewards by delegating your HP just a loophole haha?
Why is one okay but the other is not when the end result is exactly the same?
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You could argue that it is a loophole but thing is due to the current world economy which build on debt . It is very hard or rather impossible to earn while avoiding or getting into a interest based contract . Our religion is flexible in these matters unlike how media potrays us to avoid unnecessary hardship to honest believers. We are instructed to avoid direct interest payments as much as we can.
Now , back to your question. The delegation payments unlike HBD interest aren't fixed and differentiate daily based on daily reward pool and curating skills which is why this is treated as investing in a profitable business where i have hired someone to do delegation for me and he pays me after taking his cut (salary).
Whereas HBD is a direct interest contract with fixed payments no matter what happens.
To summarise, the possibility of less profit or even loss (missed payments due to no upvoting as an example) plus involving a second party along with a transaction of upvoting makes it kind of a business as oppose to fixed interest payments in HBD where no transactions are done except for me receiving payments.
Hope I was able to explain clearly since my first language isn't English. It may seem confusing but for Muslims we can judge and differentiate easily .
Thanks for taking the time to explain it for me.
Much appreciated :)
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