It was about 20 days ago that I Parked SGS Funds in a Liquidity Pool so that they could remain relatively liquid and accessible for paying the Hive Power Leases each week for our Community Curation Project. Admittedly 20 days is not a long time but I am reasonably confident that the returns are in line with expectations and they're turning out to be even better than holding the funds in HBD Savings.
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At time of writing this post SGS has 448.66 HIVE and 11,221 SPS in the SWAP.HIVE : SPS Liquidity Pool which at todays prices is worth about $221 US Dollars. I normally pay leases each Monday morning (Sunday for the rest of the world) and so I now also go into Splinterlands each week to Claim the Rewards from that Liquidity Pool.
This week the claim amounted to 79.751 SPS which is worth about 0.773 US Dollars for the week, or $40.23 extrapolated for the year. As an Annualized Return (APR) that comes out at 40.23 / 221 = 18.2%. Not bad...and comfortably above the 15% APR that HBD Savings currently offers.
On top of that there is a fee earned directly from the Liquidity Pool which is added to the initial Liquidity Position. Currently that is totaling about 0.82 since the creation of the position (20 days ago) so if we try to annualize that then it looks like ((0.82 / 20) * 365) / 221 = 6.8%. That value is effectively on top of the 18.2%, giving us a total APR of approximately 25% that we are earning on those SGS funds.
Obviously I'll keep an eye on these returns to make sure they don't fluctuate over the next couple of months while we will draw down on them to pay our leases, but I'm comfortable with how it looks at the moment. With HIVE getting a bit of a boost since I pulled those SGS funds out of HBD Savings I'm pretty happy to have made this move and will now be considering Liquidity Pools as a serious alternative to HBD Savings going forward.
Thanks for the update @buggedout
!BBH
Nice work Buggs.
!pimp
Grateful for the update, @buggedout
Nice job! Sounds like you made the smart play!
Love it!
Sounds good! 🪙
!pimp
Great and informative information.
!BEER
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Awesome work man! Thanks for helping enrich the crew!