Staking Instead Of Market Making - Being The Boring LEO

in #hive-16792224 days ago

So the Uniswap hype has proved to be real, and wLEO has provided quite the price pump over the last few days, LEO has not hit parity with HIVE but has been selling healthy above the HIVE price. The lack of tokens, the demand on Uniswap, the strength of ETH are providing market markers with an incentive to move their tokens out of LEO and into Uniswap.

You are coupled with the fact that there is an LEO bounty for those providing liquidity that should net you a pretty penny at currency prices. I just read @jrcornel post on how much of the bounty you'll get and on principle, based on this post you should get around 24% ROI in tokens at the current price. If the price increases who knows where your ROI will end up.

I totally get the buzz around the liquidity pool, but I've yet to jump in, in fact, I've gone the other way and continue to stake instead.

Market making is excellent, it's part of the new ecosystem now, and it's exciting with rewards on that level so I can see why staking can seem boring since we've always had it, but here's my case for why I've chosen staking over market making.


Fixed reward pool

According to @leo.stats, around 6200 tokens are minted daily, and about 250 monthly active users are competing for those tokens.

I am not sure how this is split between miners, curators or authors, but that's what gets created every day. So you have very few tokens to compete for each day, and while there are a few users, it still makes getting a token allocation pretty high. Yet, as more users come in, those 5,10, 20, 100 tokens you could get are going to be much harder as curators have more to choose from to distribute tokens to and your stake will count for a lot more.

So the rewards you are getting now are an absolute premium, and as the user base grows, you're going to be kicking yourself for not keeping those cheap coins you earned which are even cheaper than buying.

If you combined your earning with picking up a few cheap buys here and there, you could be a real winner in this game of staking.

Fewer coins competing

As coins are now being unstaked and stripped from the HIVE ecosystems and wrapped up in ETH, it means fewer tokens used to stake to compete for curation rewards. This means the more you stake; the more competitive your stake becomes when competing for rewards, and the more you can earn.

Coins are burned

Coins are being burned by add revenue from 3rd party ads, as people promote content on LEO, as LEO dex grabs fees from users and I am sure there will be more sinks in the future. As tokens get burned, the supply gets less pushing up the price and those staked towns you have to get a little more powerful in their curation as they are less active tokens staked.

Scatter coins and dust

Plenty of users are cross commenting and curating on various front ends, and as a result, LEO gets dumped into their wallet, in some cases that LEO goes there to die. Users don't see it or think about it or know about it and may not be staked, or it is staked but not being used and that means fewer tokens competing with your stake for active curation rewards.

Getting a bigger piece of the pie

Staking, while bigger accounts continue to power down to chase the liquidity pool gives you a greater chance of building your account for future efforts. If the Uniswap listing is anything to go by, the LEO team isn't going stop at just one exchange; this was proof of a use case, so I am sure more exchanges will come online in future.

The more exchanges and external need for LEO the more pressure on the reward pool and those able to mint tokens as they need to create the tokens to sell and supply. IF you have a big stake or miner stake that nets you a healthy income, you become that, YOU are the liquidity provider and YOU set the selling price.

So don't mind me while I keep staking, I'm now just over 5300 tokens and counting, and I will be riding these good times as long as I can.

Have your say

What do you good people of HIVE think?

So have at it my Jessies! If you don't have something to comment, comment "I am a Jessie."

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Looking like a gold rush either way. The only way to lose is to fiddle around the edges, and lose a heap in gas fees. I'm pushing in on the pool; trying to snap up some of that 300K; but whether it's a boost to curation strength, or a share of the fees, it's feeling very much like a golden land of opportunity. :)

Well it sure is getting all us to mobilise and push the project forward, I see its listed on @coingecko now and on blockfolio, the pieces of the puzzle are slowly coming together, its fun to be a part of it, all a learning experience and if it makes me some beer money, why not?

I'm with you on this, All this Wleo stuff is to complex for my little head to understand. I will continue staking Leo and maybe sell a few for Hive when the price is right. I'm just glad I invested in LeoMMs when they were going cheap as I don't write about financial matters, I'm only an amateur Jessie.

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Totally get it, it can be alienating, I just think there something for everyone there will be more risk stuff and low risk stuff, the more things we can do with the LEO token the better for everyone. That MMS was a really good call, I regret not picking up some when they were cheap.

I think that not everyone should be forced to create financial content, I create because I like it and It helps me learn, some just want to read and comment and that's fine but they should be rewarded too

Thanks for the tip always love a good beer


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Nice post (as always), @chekohler!
So, LeoFinance has just 250 monthly active users, as you wrote above. Let's hope that the user base increases.

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For now we can enjoy more coins while we wait the more people with stake the more curators we have when new authors do show up!

If you think a few thousand investors have this thing sitting at half a million dollar market cap then a few thousand should easily push it into the millions and sadly price is what attracted people right now

I agree with you and @josediccus, wLEO is awesome stuff and it will help with keeping LEO price more steady... and if more exchanges come in, it would be even better... I have a bit over 3.5K staked LEO, and will not unstake them for doing liquidity stuff... I know that early birds will get some of the profits, but still... I will do the "boring job" and not FOMO in...

Great post!

Awesome perspective, I share the same as well. I won't unstake just to participate in wleo, I'll rather buy.

Lol we all have our part to play and someone’s got to do the boring work that doesn’t grab all the headlines! I’m happy like you to sit back and quietly go about my business

I am being a little cheeky and taking 5 LEO and putting it on the market at a premium price to see if it gets filled then I set the Order again at a lower price to buy and wait

I have all the patience and it seems to be working

I like earning money in a boring way... :)

And that what you said also... selling a bit, re-buying on lower price... taking a bit of profit... why not? :)

Yes if you patient the market tends to reward you, like sometimes my orders take days or weeks to fill but I just leave them

Time in the market for me is better than trying to time the market! I tried day trading before and I SUCKED at it, easiest way I’ve lost money so maybe I’m biased but slow and steady works for me

Plenty of users are cross commenting and curating on various front ends, and as a result, LEO gets dumped into their wallet, in some cases that LEO goes there to die.

I just discovered to have 17 LEO, not sure, how I got it. I thought, only using leofinance would get LEO, isn't that true ? Can you point me to any post that would tell me, what are the different ways to earn Leo ?

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LEO gets spread far and wide as people on HIVE interact with content tagged using their reserved tag "LeoFinance"

  • You can earn LEO from commenting on a post with the leofinance tag and the users upvoting you,
  • You can earn from upvoting a post that has a Leofinance tag
  • You can stake your LEO and earn more
  • You can delegate your HIVE to leo.voter and earn LEO
  • You can buy LEO miners or Mega miner tokens and earn LEO

You can delegate your HIVE to leo.voter and earn LEO

Any idea how much ? May be I would delegate few k hive !!

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1560 HIVE should net you around 1 LEO per day, which is around a 23% annual return on your delegation at the current LEO price, so as it goes up you could make even bigger returns

So that's more than even leasing hive !! And do we get the hive curation reward as well ?

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No you don't, the HIVE curation goes to LEO and is used for token burning pushing up the price

Actually it's always around 16% APR. When LEO price moves compared to HIVE so does the daily amount you get from delegation. I currently have 1500 delegated to leo.voter and the daily LEO rewards keep going down as LEO appreciates compared to HIVE. Today it was around 0.6-0.7 LEO.

Ah thanks for clearing that up, I didn't factor in the price change of HIVE, ah always so many moving parts, but 16% APR still ain't a bad return, beats out a lot of the lease market on dlease right now

beats out a lot of the lease market on dlease right now

That's true and is why I upped my delegation to leo.voter from 500 HIVE a while ago when dlease APRs were no longer as attractive.

Lol after your comment, that's exactly what I went and did, let the LEO roll in while we can get it cheap

I agree, by not riding the LP wave, you don´t waste money with gas fees

Yeah I didn’t have enough stake to power down that would make it worth matching with ETH I’d have to buy a fair bit of LEO to let’s say match 1 ETH which got pricey very quickly so I thought what the hell im not going to cash LEO all the way up

The fees was nuts when I claimed my uniswap tokens so yeah I’m not keen on paying ETH miners

Will maybe do some market making on dswap from next month

Good luck with that, the spreads are so low, it won´t be easy. And if they are not, then you can have bad luck and end up sitting on some tokens which are going down.

Thanks for the advice yeah I get that it’s not the most attracive place to play in but I’m doing it more as a experiment just to see how it works and what your earning potential can be! I think if there are BTC and ETH pairs we might see some action

Well I think one of the reasons why people are chasing the liquidity pool is because of the craze, the prospect of the gains and well fear of missing out too. Well it's great only that I didn't power down, I only bought. Staking might sound old fashion, wleo seems like the latest bride in town. It's just so exciting

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Well said and rightly so if you had a lot of LEO to power down or you could buy off all that was sitting on the open market you could do very well in the uniswap pool

This is kinda like STEEm was In the beginning when people were making $1000 to $10 000 a post! The more LEO goes up the more buy pressure it puts on HIVE too so it can have even bigger effects as people hear about the token and the free gains we get

Imagine someone posts like how making $100 a day on LEO people will be flocking

LOL I’d be happy with a 5th of that as neil posted making a case for $2 LEO since I get about 20 tokens a day or close by!

I think if users are making that much they’ll want to reinvest, if khal and the team said hey let’s do some community fundraising for ads or new feature or tools or exchange listings many of us would be on board

So it will only get easier to richer leo makes us


Maybe you can sell it for some more LEO 🤪

Hahaha happy to oblige. Leo to the world.

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I am the boring leo too 🤣

Lol 😂 glad I’m not the only one yawning and sleeping on the Uniswap mania! LIONs 🦁 love steak don’t they?

Fun fact. The no1 leomm holder claims to have lost his keys. If that's true, a significant share of the daily minted leo are essentially burned. Forever.

Oh that is a juicy little fact you tossing my way, would love to actually go ahead and do the calculations on that burn

I’m sure @dalz could tell us how many LEO tokens have not moved since launch too might be a few dead beats lying around

I go for the stake! Good point from you - I checked and found 20usd in Leo in My Wallet unstaked- so I Will stake them.

That’s a nice find in the old wallet, hopefully it will net you a few more LEO if you follow HODL trial and other financial posts you vote on! I’ve been making around 10-13 LEO just on curation and I don’t actively curate lol

"I am a Jessie."

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Welcome! Nice to see a new face here and a fellow LEO

Have a !BEER sit down relax, talk money and make money

True, I think this is the first time I've stepped into the Chekohler Universe - thanks for the welcome and the beer :)

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Hey @barge, here is a little bit of BEER from @chekohler for you. Enjoy it!

Learn how to earn FREE BEER each day by staking your BEER.

Great article and I agree with you staking is yet another great alternative strategy as Leofinance continues to evolve.

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Someone’s gotta hold down the fort while the fighters go out and make the market! I think the more the ecosystem expands the more options we have for users so you can get into leo at low risk or high risk or have a mix

Ohhhh, I like this !
Such a colourfull speech ... "Someone’s gotta hold down the fort while the fighters go out and make the market!"

As I'm a true LEO (born in late July), I'm trying to stay in both camps too. ~60% of my stake will eventually be dropped into Uniswap pool (along with some extra wLeo's purchased there by eth's), while the other 80-90K will stay to "hold the fort". 😃 And collect those fat, juicy curation rewards. The only big thing I somehow missed was getting the very last chunk of cheap LEOM miners. 😥

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Id say you doing pretty well if you’ve got a strong foothold in both so you earning uniswap fees, leo bounty, curation, author and miners you should have a pretty healthy increase in your stake overall!

ETH alone has 12 DEXs leo could look to sink their teeth into next tapping into more investors spreading more of that pool around the upside to this thing is nuts!

The roadmap is there since and repeat while the site acts as miners and buyers of last resort

One of my other LEO sources is HIVE delegations to leo.voter , reduced a bit to 20K at the moment. Where I'm missing yet a fatty bit is author rewards. No time (and courage) to start doing regular posting on this tribe

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Ah yea you really are pushing the sinks in every direction creating that drip is key I do not only in HIVE but with BTC too, I have most sitting idle and some netting me an interest as well as other staking coins which are more one trick ponies when compared to HIVE I just place small bets that bring me yeild and hope one of them will kick off

I am doing both, I got about 4k leo in the pool but I am transferring my other LEO from my felander.leo account to my main which will put my at 1500ish staked.

On top of that I am getting roughly 2 leo per day from my miners.

2LEO= 0.3USD per day x 30 is about 10 dollars a month from the miners

Leo at the price prediction of 2 USD is 120 dollars passive income per month right there...

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You got quite the stack of miners there I see that’s a pretty healthy return at 2 LEO per day has it been at all affected by the race for more miners to be staked now?

$2 USD would be a crazy price point I think it would make a lot of noice not just here but across the crypto space that’s a 7000% gain lol

Is $2 crazy or not - depends of how you look at this. $2 x 5mln = $10mln marketcap. Global. Far from crazy, IMHO

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I don't think so either, besides this is one of the most aggressive token burning ecosystems that I've found so that reduces supply so you need even less of a market cap push

Hey @chekohler, here is a little bit of BEER from @gamsam for you. Enjoy it!

Learn how to earn FREE BEER each day by staking your BEER.

Just seeing this post. Just so you know, I'm your fan. I enjoy your publications.

About staking and providing liquidity on UNISWAP, I have always preferred staking and I want to stake more. The only reason I get to sell some of my leo tokens is so I could meet some offline needs. I wish I had other sources of income then I wouldn't even touch my leo tokens.

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