The LBI project holds a range of assets across HIVE, with our basket of holdings worth roughly $21,000 give or take. One of the assets we have is some HBD savings. Now, as anyone around HIVE will know, this earns us a nice stable yield of 15%, and acts as a hedge in times when the HIVE price is dropping. However, when HIVE goes up, it acts to slow our growth, as HBD doesn't change obviously as a stable coin.
Lately, I have been feeling the urge to pull the HBD out, convert to HIVE, and then go shopping across our range of assets to improve our positions and boost our growth. Take the handbrake off, so to speak, and capture the full benefits of a rising HIVE price.
But, I'm not a good trader, and timing is usually one of my weaknesses. So, I'm looking to crowdsource the decision here.
What would we do with the funds?
There is a couple of options.
Hold liquid. The first possibility is to simply hold the HIVE we get from swapping out of HBD liquid, and then wait for a decent HIVE pump to swap it back. We have roughly 3000 HBD in question, and a HIVE price up around $0.40 would let us double our HBD. We could have around 15000 HIVE sitting in a wallet, waiting for a pre-determined HIVE price to trade back to HBD. Nice and easy trade, with a decent reward for patience. Who here thinks HIVE won't go to 40c at some point in the next 12 months?
Power it all up. Next choice would be to swap to HIVE, and power up the full 15K. This would give our HP a big boost, give us funds to delegate to earn more assets like BRO, PWR and LEO. It also opens up options to earn other assets like LGN for example, or delegate to curation projects to earn liquid HIVE. The benefits would be in boosting us up to be a more significant HIVE power wallet, and the growth we could get from that. The downside is that it would be very hard to swap back to HBD, if not impossible if HIVE has a quick pump and then settles back. We'd likely be pretty stuck with the HP, not a bad thing, but it makes the swing trade almost impossible.
Put it all into HE investments. We already have a range of holdings, which we could easily add more HIVE funds to . The PWR, SIM, DAB and EDS wallets could always use a nice big chunk of extra funds. We could add a chunk to each, and fast track these positions. Again the downside is that if this is to be a round trip trade, it will be hard to get the funds back to HBD.
Some combo. We could keep half liquid, and hold it for a 2X and then get our initial 3000 HBD back. The other half could go to one or some of the options above. Not a bad option, we grow our income producing assets, and at the same time have the flexibility to trade back into our HBD holdings quickly. The best of both worlds, or a weak, half hearted conservative option? Let me know.
So, my instinct is telling me to do the lot, and put it into HIVE income generating assets. Here is what I have in mind: This is assuming swapping 3000 HBD into 15000 HIVE.
A new wallet, lbi-bxt. Move 3000 HIVE into it. Gradually (a bit each day to not move the price too much) add to the HIVE/BXT liquidity pool. This gives us the 2 layer approach to building assets. The pool earns BXT. We would stake the BXT to earn HIVE. I'd shift the existing BXT holdings over, and stake them so the current income continues. The pool earns 20% APR, and BXT is reasonably stable to HIVE, at around 1.6 - 1.8 HIVE per BXT roughly. The BXT would all be staked, and then it earns 15% again as a rough estimate. So, after a year our 3000 (assuming prices stay stable) would be worth 3600, and be generating HIVE income on top of that.
3000 to @lbi-dab. This is an easy one. the 3000 would go in as a bid on DBOND at the 1 HIVE peg. Once it gets filled, then we have doubled our DBOND (which holds peg 1:1 with HIVE pretty well)This would double our current 8 - 10 DAB per week mint rate, so our income from DAB would grow quicker. Would I buy more RUG? Probably not tbh. It is high return, no doubt, but it is also high risk and I think our bag size there is sufficient.
3000 to @lbi-pwr. Another easy option. Gradually feed it into the pool, and earn at 22% yield. The yield on that pool comes half HIVE and half PWR. We spin the HIVE out to income, and then compound the PWR. This means we would generate 11% income, plus 11% compounding growth of assets from this move. Better than 15% onHBD, and PWR's "soft peg" is fairly solid.
3000 to @lbi-sim. Same as the above really, feed it gradually into the pool. This would yield very nicely, as SIM power earns a very nice APR, which is decreasing from the look of it but still up around 27% currently. This yield (on the average SIM holdings) is on top of the pool yield of 15%. So our 3000 HIVE, split 50/50 into the pool would yield - 27% of 1500 + 15% of 3000 = 855 HIVE, a combined yield of 28.5%. The HIVE goes to income, the SIM (pool rewards) gets compounded.
3000 allocated to accumulating BRO and INCOME, and possibly other HIVE income producing assets. These are much lower yields, but both are long term, reliable Hive projects with proven track records. Other options would be SPI, LGN, DRIP, DUO or others. I'd have to dig in to these projects to do a bit more research (except for SPI obviously). BRO yields 2-3% APR in dividends (more of a growth token tbh). INCOME yields around 8%. SPI yields 2-3% also (again growth is the primary focus) and the others I'm not sure at this point. Big plus here is we are backing other Hive builders, big minus here is liquidity.
These are examples of what could be done with an extra 15000 HIVE. There are obviously other options. Stake the HIVE as HP, delegate to projects. Everything is on the table - throw your ideas or suggestions at me.
So, I guess we get back to the original topic, and the title of this post.
Would love to hear your answers to these questions, regardless of if you hold LBI tokens or not:
1. Is it time to swap from HBD to HIVE?
2. If yes, should we hold all, or part liquid?
3. If we trade, and want to invest, what projects should we think about?
4. Do we power up, and boost our HP for the long term?
Thanks for reading this, to learn more about LBI, there are some links below to learn about us.
Cheers,
JK.
https://inleo.io/@lbi-token/lbis-september-2024-recap-2zc?referral=lbi-token
https://inleo.io/@lbi-token/weve-set-up-another-new-wallet-kae
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