Did you know you can lease HP?
Now as with all the different "Dragons" in this community I tend to start them off with 100 HP and see what kind of return they can get by delegating to different communities.
This time things will be a little bit different. This account was handed 100 swap.hive and with that I'm trying to lease HP for four weeks and see how much I can get in curation rewards.
Head over to hive-engine
In order to get a lease I headed over to Hive-Engine and placed an order there under the leases tab. There used to be other places to lease HP (dLease if I remember but for today I'm using hive-engine).
When you go to the lease page you will see something like this
I made an offer for HP that would make the top of the list. Now I probably should have done what @oadissin did and made multiple smaller leases so they are more likely to get filled. However, I really want to see how much HP I can end up with if I start with 100 and buy a lot of HP and then get those curation rewards coming in.
Side benefit: If I have 10,000 HP then I know I will have enough RC in order to make a few new name creation tokens so I can expand my research on different ways of making money on Hive that much faster.
Will anyone bite on my lease request?
Honestly I have no idea. I did do this once before and it filled within 12 hours. I'm hoping for similar success this time but....
Time will tell.
And who knows....
In a month I hope to be able to answer the question...... Will I get more or less than 100 HIVE back after 1 month of curations? They say curations pay out at 12% which means I could be stretching my budget
.... or I could end up with a whole lot less. Who knows?
Probably will have more luck filling it quicker if u break it into smaller chunks. Four 2500’s or two 5K’s would fill pretty fast in comparison 👍
I know you mentioned this in post but I think you underestimate how long this might sit by not doing so. I had a 10% plus offer not get filled for this reason.
Yeah. You are absolutely correct. I just thought I would put it out there for 24-48 hours and see what happened. I was actually about to switch it to a bunch of smaller requests (maybe 4 x 2K and a few 4 x 500HP).
But this is a learning account to see how things work and report back :)
Thanks for the input and I'll be following your advice fairly soon .... I'd just want to make sure my curation trail following is properly setup first ;)
Your math is wrong. The 12% you are saying is curation + hive apr.
Hive apr now is around 3%, and it goes to the owner of the HP and not the lessee. The lessee get only the curation rewards that rarely reaches 9%, if you are a very good curator you will be between 8%-9%.
The apr shown in the lease price also does not count the HP cool down period for returning the lease. So if you are leasing for only 4 weeks you are actually paying around 11%, not 9.74%.
Your probably right. However, it says the return is up to 13.13% with 2.94% being the increased value of HP over time meaning up to 10.19%. Realistically it will be less and I'm totally expecting that.
Then again, if I actually get the HP I can upvote my favorite authors on HIVE so if I lose a little bit but they get a bunch of bigger votes I'll call that a win also :)
Have you checked your own curation apr? I doubt you are above 9%. To get that 10.19% you need to be one of the first to vote posts that will get late votes. I believe I do a good job curating and I get about 8.5%.
Also remember that the price shown on that website for the lease is what the lessor gets, including the apr. The lessee pays for the cooldown days, and the apr paid by the lessee is much more then what is shown in that website.
When you lease, you are paying a premium to get popularity/influence in return, or you can call it give a nice upvote to your favorite authors, I agree it's also a win. But it will never be profitable.
Leasing is also common in voting schemes, like self-voting (main and alts), or vote trading.
:) I have looked at a few accounts that were setup as delegation accounts. The difference between them wasn't that much but you are right, getting the 10% is almost like a pipe dream. Still, starting with a 100 swap.hive and seeing what the actual number is after a month will give me a really good idea what the actual number is.... which is the whole point of this account :) ... Thanks for the heads up, if I was worried about trying to make money I'd be much more worried but I'm actually much more interested in seeing how things work out after a month and seeing real world numbers rather than speculation :)
I saw you broke up your lease, properly easier to get it filled then :D
I have read some of the comments on this posts and the other post and I do agree with what peple write if we think short time.
I have been leasing HP for a long time now and I might have lost value in that long time, but I continue to lease the HP since my upvote is big and it feels nicer :D
Also, the long you lease the more stable the apr you pay is and it goes down over time, if you add the HP APR (3%) on your own/earned HP from Curations.
So as long as its sustainable for you to pay into this and not a one time payment of 100 Hive, I think its better value long term!
Yeah, I broke it up and will continue to break it up over time. Having a vote that counts is important and if I intend to support the community here I want a vote that matters to them and gets people involved in the community. Sure I may lose a bit on my end but if its a gain for the community its a small price to pay.
The one time 100 Hive payment was just to give me a frame of reference to know exactly what my percent return is and how much I end up paying for how much return....and how much I can give back to the members here (and elsewhere).
Cool to hear from you although I will admit when I saw a reply from @cwow my first thought was "Oh God, I must have really screwed up if I got a reply from one of the big boys". But so great to hear from you, appreciate it :) and will have to see how this experiment in leasing goes :)
Sorry for the late answer :D
I understand the reference, its a good start and if you can support the community more power to you dude :D
I think its a winning strategy long term, but its kinda hard to calculate if you ask me xD
I am far from one of the big boys, but thanks for the compliment! :P
haha.... Not so hard to calculate. Spend 1 Hive. Curate until the lease runs out. Check how much money is in the account :)
If it is more than the 1 Hive I spent I made money. If it is more than 0.5 Hive then between myself and those I upvoted we win. If it is less than 1 Hive...then I screwed up. hehe
You will always almost lose Hive on Curation if you lease it xD
Standard Curation is 8% and if you lease it in for an 9% Apr, then you have lost 1% compared to just powering the Hive up.
Buuuuut, thats just short term, long term its worth it if you ask me, since you also get the hive inflation (3%)
Hmm... I thought the inflation still went to the original owner not the delegatee ... then again that's the whole point of this account :) See how things work out in the long run :)
Well, yes. If HP you lease from someone THAT hp goes back to the owner.
But the HP you earn from Curation, is yours and you get that inflation