I wanted to put out a post looking at why I've set up LBI with multiple wallets and compartmentalized our major investments. We have a few main branches, being:
- @lbi-token - Our main wallet with the majority of our holdings.
- @lbi-dab - Our wallet holding all our assets related to the DAB project.
- @lbi-eds - All our EDS project assets.
- @lbi-pwr - Our PWR asset holding wallet.
- Some admin wallets that don't hold assets @lbi-income, @lbi-payments, @lbi-pool, @lbi-bbb but these are not really the focus here.
All of the first four could be contained in one wallet, so why split it up into separate divisions?
Focus.
Having dedicated wallets helps me keep track of how each major investment we have made is performing, and what can be done to build it faster. For example, with the DAB wallet, it became clear that the RUG investment was struggling, and while it has still been producing a decent yield, it has cooled off a bit, and lost some significant value. To ensure the wallet kept growing, I needed to change some things. This wallet received a boost of funds, I bought a few more RUG at a much lower price than the intial buy, and picked up a large number of DBONDS. I also started staking some of our DAB, to give us another way to gradually grow our DBOND. The effect of all this has been a significant acceleration in our rate of minting DAB, which is the end goal of the wallet.
The PWR wallet is another good example. It is much smaller at this point, but there is a plan to grow it thanks to a large delegation from our primary account. Funds are building every day, and the wallet is now starting to accumulate it's own Hive Power. In time, as this HP grows, I can start to decrease the delegation from the main wallet, and the PWR wallet can become eventually self sufficient.
Having single purpose wallets lets me focus on maximizing the growth opportunities from that investment.
Administration.
This is a pretty straightforward reason. Having specific wallets for specific investments makes it easier to manage the fund. Updating the spreadsheet each day takes about 15 minutes, and I can quickly see how everything is going, and publish our daily asset backed value thread.
I personally find it easier to manage a diverse range of assets and income having it sectioned up.
Potential.
Here is the interesting reason, and probably the most important one. By building decent sized single purpose wallets it gives us possibilities down the track. Lets look at a hypothetical:
Our EDS wallet grows predictably over time. The EDS project hits its "flippening" moment when the APR on EDS stops its slow decline, and starts increasing. EDS investments become highly sought after during a future bull market, and wallets with a good sized position in EDS do very well. It would be fairly easy to spin off our EDS wallet with it's own token, in order to raise new funds. Maybe we get offered a chance to buy out some other EDS holder, but don't have the liquid funds to do so. We could tokenize our EDS wallet by making a new token valued at 1 HIVE each. Then we issue x amount of tokens to LBI to cover the assets it owns, then new funds could be raised by listing new tokens issued at 1 HIVE each for investors to buy.
So, LBI does not have any ability with its current token to raise new funds, if an opportunity arises. If something new comes along, we would have to sell existing assets to have funds, as their is no capability to issue new LBI tokens. But we can tokenize these sub-wallets, turn them into stand alone projects, and sell some of our holdings to raise new funds.
That is the real key here. Holding a certain collection of specific assets in their own dedicated wallets gives us flexibility. Turning each of our major sub-wallets into holdings that can stand alone is a major goal of mine.
So what comes next?
I think the EDS wallet is pretty self sustaining now. It holds a decent amount of HP, plenty of EDSMM with 16 or more years of reliable EDSI mintage to go, and a stash of EDSI that grows by 20 per week. I've just started using EDSI minted above 20 each week to trade to start accumulating EDSD, to round us out into a diversified wallet covering everything the EDS eco-system has to offer. The EDS wallet is worth around 16000 HIVE, and comprises nearly 20% of LBI's total assets at this time.
The DAB wallet is similarly positioned. It does not have a HP balance (currently, but that would be achievable by trading some of the minted assets (either DBOND or DAB) back to HIVE each week. It has multiple layers of growth built in, and decent scale that puts us in good shape. I'd love to add a few thousand more DBONDS, but that isn't really necessary - just something that would be nice.
The PWR wallet is a work in progress. Much of its growth still comes from the delegation from the main wallet at this time. It's pathway to self sufficiency still has a long way to run, especially without an injection of funds. Using the 12% APR on delegations is the main growth method in the short run. As HP grows, I plan to slowly reduce the delegation from the main account. There is still much to do to build this into a stand alone wallet, but work is underway.
The next division.
I've set up a new wallet - @lbi-leo. I've started an unstake for our full LEO balance, of 200,000 on the main wallet. As that becomes available, it will be shifted over to the LEO wallet. It may not all be powered up, some may be traded to HIVE to build a HP balance, to restart delegation to leo.voter. Some may get traded to buy some LEOM (the LEO miner token). The return on LEO in the form of curation is pretty low, and adding some other ways to earn LEO makes sense.
This new LEO wallet will be set up to grow over time, so while we may start out with less LEO staked in the short run, it will have a growth pathway. I'm likely to track each source of LEO income, and then split it up 3 ways. At the moment I'm thinking 1/3 will get staked, 1/3 traded to HIVE to boost HP, and the remaining 1/3 would go to the income wallet to add to the weekly income split.
This gives us a growth pathway once again for LEO investments. This also allows us to sperate our main wallets curation away from having to be LEO focused. We can focus the LEO wallet solely on curating LEO content, and the main wallet can branch out a bit and focus more across all of HIVE.
All in all, I think the multi-wallet approach is what works best for LBI. It adds flexibility, and gives us the potential for new capital raising in the future. Each division has its own focus, and making each wallet able to stand-alone is a major goal over the coming years.
Setting up LBI for the long run is the plan.
Let me know what you think, any ideas to do things differently or even suggestions for new divisions to look at down the track.
Thanks for reading this, it is really just me explaining my thought process for how I've set up LBI, and thinking through some possibilities.
Cheers,
JK.
Here are some recent posts from LBI in case you want to learn more:
https://inleo.io/@lbi-token/powering-up-hio
https://inleo.io/@lbi-token/upgrades-to-our-lbidab-wallet-9vx
https://inleo.io/@lbi-token/lbis-2025-goals-progress-report-jj1
Posted Using INLEO
Good approach. Taking notes on the multiwallet and tokenization thing.
But... what about simply rebranding LBI? :)
Collect all the tokens, issue a new one with clear and fixed tokenomics. (fixed supply, round number, and ability to mint more if the case arises).
Dunno, just venting thoughts. Why not?
These are all thoughts I've had ticking over in my head since taking over LBI 32 Weeks ago.
But, I think our link to LEO is a point of difference. Yes we have lots of HIVE based investments now, and asset wise it's not a very LEO Backed Investment fund. But there are numerous HIVE funds already - SPI, BRO, LGN, EDS, DAB, INCOME, DUO, DRIP, PWR just to name the ones that come to mind right now (I'm sure I've missed numerous). Point is, Our history is linked with LEO, and our token still relies on LEO. It also benefits from, and is beneficial to, the LEO economy. We earn LEO, and we earn HIVE and trade it into LEO, and redistribute that LEO.
If we drop that link and become just another Hive token, where is our unique point of difference.
Our tokenomics are ok, supply is capped and all issued, and we have a little weekly deflation from a small buy back and burn program.
I know LEO is not everyone's favorite project, and there are aspects I have reservations about, but LBI and LEO are linked, and overall I think that is a good thing.
Thanks for the thoughts, they are always welcome, and match many of my own thoughts over the months. But I think we are ok staying as a Leo Based Investment.
Cheers mate,
JK.
Looking forward to see where it goes. I just moved some more of my LEO and LBI into the pool. I think I am supplying 40% of the liquidity now.