Normally at this time I'd be putting together the weekly LBI update post. I'll get to that later, most likely tomorrow now as the real world has things for me to do. However, I wanted to update regarding the impact of BRO's collapse on LBI, and the steps I took to minimize the problems.
Long story short, no one really knows. Check @brofund and the stream of posts in the last day or two.
I'm not going to say too much, other than watching this all play out is so disappointing.
Anyway, what is LBI's exposure?
Not much really. We had a delegation to @legionsupport, for which we were earning daily LGN tokens. These are now essentially worthless, and the recent value had been around $170. Not nothing, but not much in the big picture of our fund. That's it, so the total loss for the LBI fund itself is $170. Rather pointlessly, I have started to unstake our LGN, but do not anticipate getting anything much for them.
The other concern wass for the DAB/DBOND/RUG investments. That project was meant to be a joint venture between SSUK and RAY. RAY had not done anything for ages, so SSUK has not been posting updates and such. But he has kept the lights on and the project still runs as it should. MY thought was the keys, which have been secured now by SSUK and all funds are safe. If what's going on is a rug of some kind, the DAB project can't be hurt.
The BRO/LBI liquidity pool.
Here is where the real impact was felt. As BRO crashed, this pool became a form of exit liquidity. BRO tokens where dumped, and the price crashed. Lot's of trade went through our pool, which caused massive impermanent loss for those that had provided liquidity. They lost a lot of their LBI, and received lots of BRO in return. 😢
My first move once it was apparent what was happening was to purge the pool rewards. This meant that everything sitting in the pools reward contract got sent out to LP's all at once. I did this to try to compensate to some degree those that where suffering loss.
Next I put a thread out recommending urgent withdrawal from the pool. https://inleo.io/threads/view/lbi-token/re-leothreads-2zswz2dqq
Then I removed my personal liquidity remaining. I think I lost around 400 LBI in the process.
Other steps I took.
The price of LBI had been pushed down quite a bit in the process. It was already trading well below it's asset backed value, and this pushed it down significantly. As project admin, I hate seeing the token trade way below what it is really worth. So I set about to fix it, and restore LBI back close to it's true value.
Removed a chunk of liquidity from all our pools. I hated doing this as my goal is to increase liquidity, but I didn't have other funds to use.
Swapped the "non-lbi" assets from pool removal to HIVE.
Started buying up LBI from the order book.
Kept going till the price was closer to its asset backed value, and there was some small buy wall in place.
You can see what I did by checking my personal wallet @jk6276-kd
I'll try to rebuild my LP positions in time.
I really want to apologize to the following:
@cornavirus
@jk6276 (my personal wallet)
@chaosmagic23
@a4xjeeper
@risingstargame
@lasort
@careassaktart
I know @hurtlocker and @bozz also had liquidity in the pool, but I'm not sure if they got it out in time, or also took a hit. The above I know for sure lost a big portion of their LBI from the pool.
It sucks, but fundamentally LBI is strong and we push on.
Dividends have gone out, asset value has tipped back over $40K. LBI is in good shape.
Cheers for now,
JK
@jk6276 for LBI
Posted Using INLEO
I pulled out last night before I started making swaps. @a4xjeeper is actually my buddies account that I manage for him. I totally forgot about it until this morning. He won't be too mad about it though. Thanks for the update. Let me know if there is anything I can do. Thankfully the majority of my LBI is pooled with LEO.
I don't think there is anything much else to be done. It is what it is now.
I thought we were making real progress with the LP's, but this sets us back a bit and shakes confidence more than anything. However, I think the other pools we have are safer so hopefully nothing else like this will happen.
Cheers mate.
Thanks and no problem!
Thanks for the update. I am not sure what happened with Ray. Very strange.
It's been hard to watch tbh. I just hope he is ok.
I hope you are ok also, as the biggest BRO holder, this must be rough.
no need to apologize. It's not your fault and we all can see that your are doing your best to improve LBI.
Thank you for the info. I'll try to sell my BRO token now.
!BBH !PIMP
It's okay, these things happen. Keep up the good work.
Shit happens man. That buy wall helped LBI stay in good shape!
Just a bump in the road in cryptoland.
Cheers! 👊
A very bad rug oull.