I had some spare HP to delegate (Around 1000) and I was searching for the highest APR that I could get in terms of daily rewards.
I researched whole of ecosystem and delegated once or twice before stumbling on ecency.
Let's go through it by order
Delegation - 1
I first came across @leo.voter giving an impressive 16% APR payout DAILY in Leo which was probably the best decision I ever took because it introduced an whole community to me of finance and I fell in love , got lost in it. If you go through my posts for the last month you'll see most posts on Leofinance. It introduced me to an ecosystem of layer 2 tokens I wasn't aware of. As a matter of fact I loved Leofinance so much that I ended up buying approximately 200 USD worth of Leo and having a current leo power of 1850 + LP but that is another story for a different post.
Even though you can earn 10-14% more by staking your earned Leo, it would be really hard to make money curating without investing and having a significant stake at first . (I was getting around 2 -2.50 LEO daily from @leo.voter which by itself isn't enough to build your LP for a countable vote)
Hence, we will keep that thing out of our calculation here since we are purely calculating the direct daily return from delegating 1000 HIVE which is 16% final.
Delegation - 2
I was certain that 16% APR daily is the best the Hive can do in terms of daily rewards. The only exception would be to power down ,buy HBD and lock it for monthly interest payments in HBD at 20% APR but due to religious restrictions ( I am a Muslim) I cannot even think about it .
After few weeks of using ecency I saw they too have ecency points/token pegged at 500 coins per 1 USD and they provide 10 points per 100 HP delegated and 100% curation reward paid out daily as well..!!
I took my calculators out and saw it a better deal. Undelegated to @leo.voter (Sorry , I still love y'all tho) and delegated to ecency.
It hasn't been a week properly but let me show you my rough calculations about it .
There are 2 scenarios to it.
We will consider an average Hive price of $0.80 per token for ease of calculation.
Scenario - 1
Daily curation rewards = 0.22 Hive approximately
Daily points = 100 .
Yearly curation rewards = 80.3 Hive
Yearly points = 36500 points .
Yearly points valued in USD = 73 USD = ~ 91 Hive
Total yearly rewards = 80+91 = 171 Hive
Average APR = 17.1% .
17% is fixed if you decide to nothing with your ecency points and just sit on it to sell them when market starts (I don't know where to sell them and I haven't bothered because I will be using scenario - 2 all the time)
Scenario - 2
Now ecency allows you to boost your posts with your points .
Currently you can get a $1 upvote for every 150 points (Remember this isn't a guaranteed upvote on every post you boost since it is manually curated. It should be well written, not plagiarized etc. But don't worry if a upvote doesn't happens within 24 hours your points are refunded in full and you can try again on another post)
You can use at max 500 points ~ $ 3.33 upvote on one post.
The interface for boosting isn't complicated and is fairly easy .
Now, considering you are serious about hive and deliver consistent , high quality posts while all your yearly points as upvote . The APR then stands at.
Daily curation rewards = 0.22 Hive approximately
Daily points = 100 .
Yearly curation rewards = 80.3 Hive
Yearly points = 36500 points .
Upvote value per 150 points = 1 USD
Upvote value for 36500 points = 243 USD - 121 USD (50% curation) = 121 USD ~ 152 Hive per year.
Total yearly rewards = 232 Hive
Average APR = 23.2% ...!!
This is by far the highest APR in my opinion that one could get considering risk, daily payments + potential post promotion as well.
Obviously, this is my current view and I am always looking for bargains every time so if they decide to change their reward system significantly in the future then it may change my POV about them as well . Until then kudos to @ecency and it's developer @good-karma .
Upvote and comment on this post to support my blog. It means a lot. Any suggestions or tips are welcomed as well.
Take care. Peace out.
