Welcome to this weeks LBI token earnings and holding post
What is LBI?
The LeoBacked Investment (LBI) token is the first of its kind, the 1st token to be valued completely in LEO. Each LBI token represents a percentage ownership in the overall fund including all LEO, HIVE, off-chain and wallets operated by @lbi-token. The goal is to provide a community based and ran investment vehicle focused primarily on the LeoFinance community and LEO token. We provide a weekly LEO dividend payment to all token holders whilst also increasing the value of the LBI token slowly but consistently over the long term by only investing into things that will stand the test of time.
LBI is a long term HODL token based on SPI's model. Because these tokens are backed and valued in their primary assets, the value only increases. Think of it as putting $1000 in the bank and earning interest. In theory, you should never have fewer dollars. The $1000 is the LEO you give us to buy your LBI token and the interest is the earnings we produce with that LEO.
Earnings for this week have been great, even with the price of LEO increasing by 20% and most of our earnings coming from HIVE. With that said, LEO curation is up 50% on last week and earnings from leo.voter are about the same so overall LEO earnings are up.
As we move into growth, I am on the lookout for LEO yielding projects but pickings are slim and CUBlife is looking to one of the best ways for us to earn a LEO income. Overall content earnings are down as 1 of our content producers has dropped from 2 days down to 1 day. We will have to get used to this going forward. You will notice that HIVE content earnings are shown as a weekly average.
Im happy with earnings in the face of LEO increasing 20%, I would have expected them to drop some but we've done good.
As we have stopped weekly dividends and stopping an operators fee, our LEO balance has increased this week and as each week pas's, this should continue to increase until we find a use case for it weather that be powering it up are using to investment into some sort of LEO yielding investments.
I converted a bunch of HE tokens into HIVE which will likely be converted into LEO. We added HBD to our HIVE savings account as we do every week and this balance is continuing to grow nicely. We can see below that HBD is catching up slowly with HIVE. Remember that with HIVE we hold 10k HP which is delegated to leo.voter with everything over 10k being part of a weekly powerpower.
We've had a great week, LEO is up 20% which has boasted the value of our bLEO/BNB LP which in turn increases the harvests we receive from it. EMP has made sowhat of small comeback as it's peg has increased 35% this week also giving a nice boast to asset value and potential future harvests.
The price chart will be fixed sometime as you can see missing weeks between 7-40 and I will get around to it. I need to manually go through 33 past reports to gather that info. Bummer for me.
We have taken a small dip in LBI token price this week but we can't be surprised as LEO is up 20% meaning our non-LEO holdings are not worth as much in terms of LEO. This recent market pump has been great for us, LEO is up 20%, ETH is around the same and HIVE is up a few percent as well. In terms of dollars, the fund is up a lot this week, i can't tell you the exact number or percentage because I don't track it but if LEO is up, LBI overall is up no doubt. I don't track a dollar price for LBI because I do track it for SPI and this makes me focus on the dollar value over the HIVE value so this is why I don't track it for LBI.
Looking at trying to increase our LEO incomes, we have 3 options and I'm not sure which is best for us long-term based on were we are in the market cycle. We can stake it and earn from curation, convert it to HP and earn from leo.voter are invest in something like CUBlife that pays out a weekly LEO income.
Lastly, something that has been playing over in my mind. I notice a lot of LBI investors really like weekly dividends, maybe more so than growth. LBI was launched as a LEO clone of SPI and using SPI's model so this is a little annoying because it leaves me running a project that is not doing what it is supposed to be doing. I have no interest in running a fancy LEO curation trial that happens to hold a small BSC wallet invested mostly in CUBfinance. The bulk of earnings coming from content is not ideal, they should be coming from non-HIVE assets in the form of harvests or interest payments. Investors being bullish on staking LEO that earns 8% is not going to see us grow by 20% per year especially when we normally pay out half of those earnings as dividends. Im hopeful for the next 12-18 months when we have a chance to build some non-HIVE assets and we can earn enough from harvests/interest payments to buy back into LEO each week, providing an LBI token buyback and provide us with liquidity for making new investments. We could explore the idea of creating an LEO-only income token that would be the LEO equivalent of EDS. Investors who favour income over growth could convert LBI into a new income token.
Anyways, this week has been very good to us, let's hope it continues, I still believe the bottom has yet to come but I'd like to be proven wrong 🤑 Have a great week everyone!
Get LBI on LeoDex - https://leodex.io/market/LBI
Get LBI on Hive-engine - https://hive-engine.com/?p=market&t=LBI
Posted Using LeoFinance Beta
What do you pay content writers?
Surely there is SOMEONE here on LeoFinance who would pump out 500 words for a couple of LEO plus the exposure this account would give them.
Posted Using LeoFinance Beta
That's an interesting question. The original proposal was that content producers would receive a dividend when various thresholds of LBi token sales had been reached. I'm not sure if that is still the arrangement.
Content writers receive LBI rewards when the LBI token hits certain prices. the last was 2 LEO LBI and next will be when LBIs are worth 3 LEO each. Off the top of my head, i'd guess the next rewards will be around 1000 LBI per day of content.
It is difficult to keep everyone happy and we can see that when it comes to dividends. Giving people an option to covert to a payout token may be a good idea. I am going to keep my LBI and look forward to seeing what can be achieved with the new liquidity. This is a time for growing and unless their poxy war kills us all we should have a bright future.
My thinking is, if we can offer investors a chance to invest in an ESD-like project then the remaining would be investors more focused on long-term growth and not as bothered about a dividends. Worth exploring more i think. Thanks for your feedback.
Those are actully some really nice fat stacks!
Posted Using LeoFinance Beta
We're getting there slowly but grow a little each week :)
Okay, I didn't realise the LBI asset and earnings portfolio was so narrow.
I like income, too, and I think part of the problem of favouring income over growth was how the LBI token was originally offered - with dividend payments after a short time. This was the offer and why many people (including me) bought into it.
Delaying dividends in the early stages was always contentious with strong views on either side. It wasn't until the situation was explained more clearly recently - that we have to sell assets from the fund to meet dividend payments that I had a full grasp of the problem.
As I understand it, CubLife (CL) is the income element of LBI? For investors who are looking for regular LEO income (maybe to build LEO for the monthly LPUD), perhaps this is a route?
I notice that there are very few buyers in the monthly CL buy. There were two last month: one is a regular saver with Saturday Savers Club who is working towards a target CL holding and the other I suspect is a fairly new comer to the Savings Club (on the @eddie-earner account).
Creating a new LEO income token is one option but that would involve both expense and time to build the fund (although people do seem to love a miner, would a CLM which mined CL work)? otherwise, what would a new income token offer that was different to CL? Are there options for exchanging LBI tokens for CL tokens - what are the pros and cons of that?
With regard to the LBI portfolio, CL looks like a good short-term option, although medium and longer term, I prefer a portfolio that minimises risk by having five main income sources with no more than 20% income coming from any one source.
I know you have written about the challenges of creating an off-chain portfolio for LBI, comparable to the SPI portfolio. Would this change with an increase in LEO price?
Happy to wait for next week's report post for responses 😁
EDS works because it's pegged to 1 HIVE and this makes it easy to plan a model around. CUBlife's token price goes up and down so it's not as easy. We probably could make a CLM work if harvests were reinvested to back the CL tokens being minted. I would be easier to create a new token that was 100% invested into either staked LEO or a single CUB farm (bLEO/BNB). Curating takes time and earns under 10% and the farm takes no time and earns over 20%.
Create a presale where LBI investors could exchange LBI in the new token. We run this for 1 month are something, then soft cap the token. After that the only way to get the new token would be to mine them the same as EDS. The ones that convert LBI into the new tokens reap the highest rewards as they own most of the new tokens before more are mined. Just thinking out loud, haha.
My thinking would be if we created an LEO income token that was invested solely into LEO only and let people convert LBI into the new token, the remaining LBI token holders would be more focused on growth. You've seen where EDS has grown to and it now represents 1/3 of SPinvest's total HP balance. An LEO version could go down a treat. Of course, I'd guess most investors would hold both.
Your last question, if the price of LEO increases we would be able to buy more non-HIVE holdings. It's more about just building out for 1 full bear run and then not having to again. SPI bought its BTC at under $10k and its ETH for $330, SPI has its stacks built up from the last bear market. If LBI can do the same thing, then next cycle we could be sitting really pretty. LBI is going in with a 2-year head start on SPI in terms of the market cycle so it has potential of others can share the vision.
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