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RE: Leasing Hive Power Economics

in LeoFinance3 years ago

How do you know that you will be losing or gaining? I don't completely understand.

Wouldn't it be the same as delegation where the other party decides how many percent curation rewards you will be getting? And if you agree, you let them have it.

Can you break it down for me?

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You choose whether or not to take a lease. I checked my current curation using hivestats. Prior to delegating the lease, it was 7%. Now, for some reason, it is higher.

So, I reasoned that if I lease out (delegate) my hive power at 11.6% (which is high, but not unheard of on dlease -- you just have to watch it and choose your time), the difference (11.6 - 7 = 4.6%). Since I don't have a huge amount of HP, we are not talking about big bucks here. We are talking about 4.6%, but that is a yearly amount whereas the lease can be over a month or two.

It all happens automatically on dlease. What I mean is that when you log in, you can look at the market and choose (or not) to delegate your HP. You can never lose money by doing this except you might lose the opportunity to make more money on your HP if you are an amazing curator. That is, if you delegate a lease at 5% (which is a bit low), but you curate at 7% (something you can check on hivestats), you will still make 5%, but had you kept diligently curating, you would have made an extra 2%. Then again, the 5% is effortless (but where's the fun?)

If you delegate a lease at a higher rate than your own curation rate, you win. If you don't plan to curate for a while, but you have HP (maybe you are going to hospital -- God forbid) then you can lease out your HP and still make money from it without curation.

If you lease HP from others, there is a potential to lose money. Some people want more HP temporarily for whatever reason. Also, if you are an insanely good curator on a consistent basis and you manage to get someone to lease you HP at a low rate, you win. To do this, you click on "request" a lease on dlease. Personally, I would not set the percentage very high because I don't know whether I can curate at a high level on a regular basis. It is risky.

For example, if your curation rate is 7% and you can get a lease delegated TO you at 5%, you win the 2% unless your curation rate falls. If your curation rate is 7% and you get a lease delegated TO you at 11%, you really lose!

At this point, the main benefit I see to leasing is leasing out (delegating) your HP. However, if you temporarily needed more HP without a big cash outlay, dlease is a way to do it. There are projects that might call for this.

I did an experiment this morning asking for a lease at 5+%. Dlease automatically says it is unlikely to be filled. That's fine. It is an experiment, after all. If someone fills the lease, though, I will be delegating out at 11+% and leasing in at 5+%, so that would be pretty sweet. I don't think anyone will take up that low percentage lease, but you never know.

Did I clear it up or make it more murky?

!PIZZA

Don't forget to factor in 5 days of lost time to undelegating