If you hold HBD, here are your considerations:
- If you move it to SURGE you get it for .90 on the dollar. Immediate 10% return.
- SURGE will pay you the same 15% but it actually works out to 16.67% because you got it for .90 instead of $1.00.
- You now have the potential to also earn capital gains if LSTR goes over $50.
So, you can stay in HBD and get 15% (assuming they don't knock it down to 12% again). Or, you can make an instant 10%, get a slightly better yield, and be in a position to benefit from a massive rise in LSTR.
Hmmmm....tough choice. lol
This is a brilliant way to look at it.
I think I would trade at $50 for LSTR.
That is what we can do right ??
Yes, 50 SURGE can be traded for 1 LSTR. So basically, you'll make yield all the way up, and then if and when LSTR goes over 50, you can convert your SURGE to LSTR. I will probably wait until LSTR goes to $70 or more, unless there is something else I can do with my LSTR other than sell. Once you convert, you no longer get the yield, so if you're not going to sell the LSTR right away, might as well hold onto the SURGE and collect the yield until you're ready to sell. Just my thoughts.
ah makes sense. but didn't I read the yield only has 6 months of funds backing it?
but yeah I would most likely convert to LSTR between 50 - 70 and redeploy that capital some place else.
It only has 6 months set aside at the beginning. After that, they will use their market making abilities to earn enough to pay for the rest.
so that 16.67% is fixed? no way they can change it?
Correct. It's actually 15%, same as HBD, but because you are buying the SURGE at a 10% discount, the yield works out to 16.67%. For example, 100 HBD costs $100 and pays you $15 over the year. 100 SURGE costs you $90 and pays you the same $15 over the year. So you still get the same payment, but because you spent less for the SURGE, the yield is higher. Looking at it another way, $100 into SURGE actually buys you 111 SURGE tokens. You get 15% on those 111.11 tokens, which $16.67. So, the yield on SURGE is actually 16.67%. Make sense?
how this thread works? 🥺