Hello LBIer's, hot damn, i've just remembered it's Thursday today and that would mean it's my day to put out for content for LBI. Hmmm, now i had not thought of anything to write about but i guess i cant talk about 1 thing i have get us into the past week. Ya'll heard of BeeSwap? If not, think Uniswap on HIVE and you'll get an idea.
BeeSwap is an AMM (automated market maker) that works much like Uniswap does. Beeswap use's the diesel pools on hive-engine to offer liquidity to almost 100 pairings. Like Uniswap, Beeswap has its own called called "BXT" and LP stakers can earn from a daily reward pool of 100 BXT on certain LP pairs. Im sure fees are earned on all LP pools but im not sure of the %, it's likely to be something small like half a per cent or something.
I think most people will understand how Beeswap works when we comp[are it to Uniswap. It might be much more than that but from my POV, it's Uniswap on HIVE which I think is awesome.
When I was searching through the pools that offer the BXT rewards, I saw the swap.hive/leo LP was one of them. The APY was 27% and I thought, well, that enough for me! I knew we have a bunch of liquid LEO sitting and a few HIVE so I converted HIVE into swap.hive and LP'd it with LEO and staked it to the pool. It's a small position but we dont hold alot of liquid HIVE and it's something we'll build into overtime. Paying out a 25% APY, for now, is pretty good. We'll build into it until this reaches 20% then put focus somewhere else.
What's the plan for the BXT earned? Sell it. Yeah, yeah I know, BOOO!!! We could stake it to earn a daily HIVE income and this is true, we could earn 0.01 HIVE income and maybe someday 0.04 HIVE per day. I'd like to take the money and run and use those BXT to help pay weekly dividends 😎. As this is an on-chain investment, it'll be included in earnings and anything included into earning is subject to selling/converting to LEO if required to do so to ensure dividends are paid for. BXT are worth around $10 today, im not so sure this will be the same are higher in 1-2 years time. I could be wrong but rewards are liquidated every day as more BXT is issued. More tokens equal lower HIVE rewards per BXT which make the BXT token worth less in the eyes of investors resulting in people selling off the token and its price will decline.
The exact same thing happened to SPS. I could not tell you any price that SPS has ever traded for as im not invested in it but I'd bet my left nut that the price is very far away from where it started when everyone was FOMOing into it thinking it was a magic bean cause Splinterlands was popping off. Once again the most profitable people were the ones that sold daily SPS for HIVE rewards to users that could put them to better use.
For LBI, I would like to take whatever HBD rewards we receive each week, convert them to swap.hive and then pair them off with LEO to add into the Beeswap pool. I'll let the BXT build for a week and cash out every Saturday while im doing the weekly reports. Over time, we should be earning 20% from this and helping to provide liquidity for LEO/HIVE.
What do you think? is this a good way for us to invest and earn some extra income?
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As much as it's a lower APR than on cubfinance, I think it's a good move to bring some diversity. Plus it's a lot less hassle to manage, no more transfer off-chain and selling BXT will help generate some HIVE to re-pool.
Good job !
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Most of the BXT will be converted to LEO to pays div's but i'd guess some of it could find its way back into the pool 😁
SWAP.HIVE - BXT at 90% APR is very tempting I understand :D
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I think it's nice to have some diversification. Do you think the 20% or so is worth the risk of IL if HIVE or LEO pumps in one direction?
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These are the risks we take when providing liquidity. The worst case is we have more HIVE.
had no idea we had such a thing on Hive :)
Yep, it's around a monht old now i guess. Gerber is the main guy behind it i think so we know it'll be fair and should be safe.
Check it out, it's uniswap on HIVE.
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If the fund has liquid LEO that it doesn't want to power up, this is exactly how I'd do it too.
I've talked about pooling LEO on my blog before, with a comparison being made to the bLEO:BNB LP on Cub.
My thinking remains that choosing the BeeSwap LP, the risk is lower because any impermanent loss against LEO, would just see us end up with more HIVE.
An asset that especially the LBI fund, can't ever have too much of.
As for the BXT rewards, yep I would also say sell them into HIVE as soon as you get them too.
Can't go wrong here :)
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Perfect, great to see you agree and approve of this.
Less risk and like you say, worst case is we end up with more or less LEO/HIVE which is...whatever :)
Signed into the wrong account and never noticed. SSUK
The BXT/Hive pool pays 90% APR and while it may come with a bit more risk I have a simple logic why I'm putting my earned BXT in this one from now on.
If you convert half of the earned BXT and pool it with Hive in this one you will double your initial BXT earnings in a very short period of time. Depending on the starting stack you could catch up with those earnings in about a month or two.
The ideal scenario would be that both Hive and BXT keep pumping and rewards keep increasing but crypto is anything but predictable.
The bad scenario is that BXT price keeps falling and you end up with more BXT in the pool but thanks to the very low supply you can simply stake it and earn much higher Hive rewards than what you can get now.
Something to think about at least imo. 90% APR is too large to ignore.
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I looked at this hive/BXT pool as well. The % is very good indeed but i fear the risk of the BXT token dropping in value massively as it's basically a farm token. Well, it's better than a standard farm token because it pays out HIVE rewards.
For me personally account, i might take the risk and put a small amount into that but for LBI, less risk is better plus the BXT has to be converted to LEO for weekly div's
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You are right. A fund (LBI) should be more conservative than a one man show.
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Thanks for this hurting my brain thing, where shall
I toss some crypto? I really appreciate all the time and thinking you do for us! To be honest, I don't know witch direction to go anymore exepty stack the metals like a mofo!
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From my POV, LBI is earning HBD each week from content and we have some liquid LEO not doing anything so 25% is pretty good. With looking to hold onto the LEO, it's either LP on Beeswap, leasing on leifi, staking on CUB or staking to curation. You can earn more on CUB staking with BNB but sometimes it's nice to keep things onchain and trackable :)
Thanks for the feedback.
Signed into the wrong account and never noticed. SSUK
I am into a couple on tribalex and making out well in it. Do not see much of a downside to it.
HIVE curation is what? 8% for most people, this is 100% passive if you just collect the BXT so thumbs up from me. I've got SPinvest involved about 2 weeks back as well, into the HIVE/BUSD LP, 65%
Signed into the wrong account and never noticed. SSUK
I threw some money at that pool on Tribaldex or something like that. But the BXT recieved isn't really that much imo
25% to pool with HIVE certainly isn't a bad return.
Remember that you also have the option of moving it to BSC and earning 60% in the bLEO:BNB LP.
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True that and it did cross my mind but i feel the price of BXT will be more stable compared to CUB. lol
Signed into the wrong account and never noticed. SSUK
This is a great plan as BXT rewards are quite sweet and provide daily HIVE airdropped based on the staked BXT. I convey towards moving with it, hopefully other investors will agree with that as well.
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Awesome, great to hear your feedback. The rewards are nice now, i'll add to it regularly until eh APY drops to 20% and then we sit on it until LEO curation earns more.
Signed into the wrong account and never noticed. SSUK
Absolutely! I'm in that pool myself. I like getting the Hive everyday and 25% is obviously a pretty good rate of return. Plus, as you say, we're supporting LEO which is what we're all about, right? Good find. I never would have thought of it for LBI.
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I hope your not in for too much, your now counting LBI's % gains, baaaa-hahahaha.
First target is getting it to 4 figures adn we'll go from there :), thanks for the feedback
Signed into the wrong account and never noticed. SSUK
1.216% of the pool. So, not too much but a decent piece. Just think, if and when I leave the pool, the APR will go up for LBI. :-)
In the meantime, I'll expect my commission check in the mail. I told a couple people about the LBI price being on sale and they scooped up about 7000 off the market last night and this morning. lol I managed to get around 300 but they bought it all before I could get more. :-)
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Damn 7000, that's a ton. The HE market for LBI is something I never check. If they got them under true value, they got a bargain :)
They did. .14 and .15 Hive I think...
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ohhh, that is cheap. What's LEO? the same price?
Hmmm, i might need to check in on this every now and then.
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Yes, LBI could have actually bought it off the market, taken it out of the dividends equation, and then either distributed later as payment to curators, or even used it to raise money by selling it at 2 Leo or something down the road. I just figured you knew it was there. If I wanted to sell 8-10k, I'd probably talk to you first before just hammering the price on HIVE but that's just me....
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nice. beeswap is a good way to make lbi more liquid!
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I hope so, we'll find out next week when we have a complete week of BXT payouts :)
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Do it ! Better than sleeping LEO and HBD ! and 25% is pretty great though ! !PIZZA
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Exactly.
No plans for the HIVE and we gotta spread LEO more, staking is cool but higher APY is nice as well.
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I am really surprised every day how far I have come, I want to investigate and invest all the tokens I have in my wallet.
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You should, you might have a few tribes tokens that you can pair together and make a good APY on reward tokens are BXT.
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I have a feeling that beeswap is going to be more heavily used thus the passive income from it should continue to grow. Who exactly owns beeswap?
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Well, i think gerber set it up and maintains it but i see aggroed is the biggest BXT holder so im not sure. It's looking to be more cefi than defi, that might put some off but I prefer cefi with someone in charge like the way CUBfinance is.
I think this will take over from people using tribaldex to exchange tokens, its the same markets but beeswap is easier to use. It's a shame it costs 1000 BEE to create a pool, i think this is the main thing holding it back. I'll never pay 1000 BEE to create a pool for LBI or any token im running. Drop the fee to 500, i'll think about it and drop it to 200 and i'll create 6 pools for 4 tokens. Not forgetting, we'd need to provide liquidity as well which will cost a bunch.
Of course the more people that join ito the pool, the lower our APY is so it's bitter/sweet. I like bitter/sweet :)
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So if I am following correctly, we are setting up a feedback loop to the LP. We get paid in BXT, sell it, and then use it to build the position in the LP?
Am I understanding correctly?
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Not really a loop, more of building another income stream. We earn HBD from content that can be converted to HIVE and we have LEO to use already. No plans to get in on other pools, just this one as we earn the tokens already and it's an easy 25% on chain. The BXT sold will have to be converted to LEO.
Signed into the wrong account and never noticed. SSUK
thanks for posting about this. I've been trying to figure out how all of this works for some time. Im liquid in both hive and leo right now. Need to make some moves
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I think it is a good move, the enter and exit plans, etc; well done.
Just a comment about the expected decline of BXT: Indeed there are more issuance along the way, but the plan is that Hive and crypto in general keeps this cambrian explosion rhythm, so if the crypto growth outpaces or equals the token generation, there is no reason why the price can't keep shape.
Maybe we can leave like 50% of the earned BXT or maybe is too low qty to consider. Experience has taught me that we should have a little bit of everything in as many wallets as possible, LOL.
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