In about a month my little project Hive Power Ventures and the token $PWR will be one year old.
And yes, as I stated in the first roadmap , it's time to talk about Hive Dividends.
Preview
During the last year, the PWR token was obtained as a reward for a delegation of Hive Power and its main purpose for most users was to sell it for a profit on Hive.
There was an alternative route, which is basically to become a liquidity provider and contribute the PWRs obtained to a pool together with HIVE in exchange for a higher APR (paid in more PWR).
For obvious reasons, leaving Hive in the pool is not attractive to most users as it adds a factor of uncertainty (although it is technically possible to do so without risk if you stick to Hive and PWRs obtained from the delegation's APR).
Hive Dividends to PWR holders come to partially change that and add intrinsic value to PWR.
Non-typical Dividends
Ok, so for having PWR in my wallet I will receive a daily/weekly payment in Hive, right?
Nope! That's not how it's going to work.
To receive HIVE for holding PWR you will be required to be a Liquidity Provider of the SWAP.HIVE - PWR Pool.
Or in other words, apart from receiving PWR , you will also receive HIVE for pooling both assets in a daily payment to your Hive-Engine wallet.
This is done like this because for now it's a very cheap solution (no coding required and tools already available on HE) but more importantly because it's sustainable and potentially much more atttractive vs. regular dividends. It's also fairer and in my opinion better for everyone.
50/50 Split
An important factor to note is the ratio of the two assets.
As the title says, initially it will be 50/50 in HIVE and PWR.
This means that you will receive both Hive and PWR equally.
You will no longer need to sell your APR paid in PWR if you want to compound. You can just keep adding liquidity.
I will give more exact numbers as the date approaches, but I think it's realistic to expect APR's NO SMALLER than the current ones.
So, expect an APR of 20% as long as liquidity on the pool doesn't increase dramatically;
(10% in HIVE, 10% in PWR) at least initially.
But the truth is that I want higher APR's, potentially 30 or 40%.
However, let's launch and well see later.
Leveling Up the Field for LP's
From September onwards the APR for delegating HIVE Power to @empo.voter will decrease from 12% to 8%.
This will mark an important moment in the life cycle of the project as the balance will shift in favour of the project vs. the delegators.
It has been in balance for the last six months, but from this point onwards Hive Power Ventures will earn more gross Hive than it will ‘nominally’ pay out in PWR.
This means that ''easy PWR farming times'' will soon come to an end.
PWR will be much scarcer and harder to obtain than before. And it will be supercharged with a high APR.
Launch
These changes will take effect the week beginning 9 September 2024.
So approx ~40 days from now.
I will fine-tune the date as we get closer.
Maybe this is not fully related with the dividends matter but... It's worth to mention.
Giving another chance to 'Protocol Owned Liquidity'
You may recall that a couple of months ago, I ‘self-repaid’ the initial liquidity I used on day one to ensure a minimum depth of the liquidity pool.
The main reason was to keep prioritising the stacking of Hive Power rather than a deeper pool (with project funds).
With the upcoming changes I see more important than ever to have a deep liquidity pool.
The Problem is... If I use funds on my name I'm not giving any guarantee about ''for how long this liquidity will stay there?'' (since I'm not really forced to anything, my tokens are the same as the tokens of everyone else).
For that reason I decided to make a move and finally address this matter in the most neutral way i could thought about:
Provided @vventures with 5000 HIVE and 5000 PWR (from my own funds).
In exchange (since this is not a donation), I minted and sent to myself 10.000 PWR.
TL;DR: I funded the project with 5000 HIVE and 5000 PWR were minted and sent in exchange.
The purpose of this tokens is nothing more than guaranteeing a minimum level of depth in the pool. With dividends coming will be increasingly important and I don't want to desestabilize the market just because I want to move funds around and I'm the biggest LP. This liquidity will simply stay there.
Thanks to this, @vventures is now the highest LP. Dividends obtained by the account will obviously be recycled back.
Closing Thoughts
I'm very excited to see how people react to the fact of seeing a pool which pays liquid HIVE.
Hive Power Ventures and it's token $PWR is evolving and this is only the next natural step.
For now it's 'soft pegged' 1:1 with HIVE but long-term the goals has always been to overcollateralize and be a grow token. But this is matter for another day.
For now, let's enjoy SUMMER!
Wake me up... when September starts!
Thanks for reading!
Posted Using InLeo Alpha
How does one get a vote from @empo.voter? Does it need a certain hashtag? Or certain content?
Take one!
Joking aside, at the moment it is not possible to ‘guarantee’ a vote. Most of them are distributed proxy votes following ocdb and some other manual votes.
Do you have any content that you think is interesting? Let me know and I'll keep an eye on it.
Have a nice day Thomas.
Awesome! Thanks a lot for the vote! Appreciate it. 🙏🏻
I am posting regularly about finance/investing topics but also about books I read or good pics/clips I made along the way.
Here’s one recent highlight per category for you to check out.
Investing
https://ecency.com/hive-167922/@borsengelaber/s-and-p-500-rallies
historic train station
https://ecency.com/hive-121566/@borsengelaber/historischer-bahnhof-historic-train-station
book review (german)
https://ecency.com/hive-121566/@borsengelaber/noch-ein-hillenbrand-der-brandneue
Best regards
Thomas
This sounds great. How do I go about acquiring the tokens?
Buy on hive-engine at https://hive-engine.com/trade/PWR
Or Swap on tribaldex at https://tribaldex.com/swap?from=SWAP.HIVE&to=PWR
Okay, Thank you
Hey!
The best way to acquire PWR will always be delegating some HIVE Power to @empo.voter
After that you'll be receiving daily drips into your wallet.
If you want to buy some the best way through the pool on Tribaldex/Beeswap:
https://beeswap.dcity.io/swap?input=SWAP.HIVE&output=PWR
Okay thank you 😊
Seems not many holders yet and not easy to get many tokens from hive-engine. The best way to acquire PWR is to delegate to @empo.voter 😀
This sounds like a smart move to be a little more focused on the liquidity pool I see those being used more then the exchanges themselves via swap platforms that most people now use. Got some time to build up that liquidity stake now to earn those sweet hive rewards!
Sounds great!
Glad you like it ;)
I’d make a smart move before the PWR tokens become hard to get
Kudos to you for running this project for almost a month
You’re going well!
I'm starting to think you are auto-commenting without even reading the posts.
I would appreciate it if you would respond to THIS comment in a genuine way. If not...
Woah. So manly
Great update, thanks for sharing :)
Hive/PWR divs would be paid out of pool's fees or where they are coming from?
Check @vventures account savings. There's 4K HIVE there. I'm putting these 4K from my own pocket (in exchange of the same amount of PWR) and when divs start I'll mint the required PWRs.
Long story short. The HIVE which will be paid as divs are already reserved in the savings acc.
Pool fees are not counted. These are shared equally between all the LP's and it's a 0,25% of every swap If I remember well.
One more question - sorry for bothering you, but I'm new to your project - you will use up the HBD in savings or just its monthly proceeds.
First, don't worry about ''bothering me'', ask whatever you need.
Second, currently there's no HBD in savings (only HIVE), said that, the HIVE which is 'reserved' in savings will be unlocked and allocated into the pool when divs start. From this point I will monitor and decide as I go along whether or not to add more.
And yes, by 'adding more' I mean using some of the curation income to keep topping up the reward pool.
however #1 prio is and always will be to keep stacking HIVE Power.
As the bull market advances though, I'll maybe start considering changing some HIVE income into HBD for the future and inevitable bear.
Hope this answers your question sir.
Have a good Friday.
Hi @empoderat, I've been reading your project for days now, I honestly don't understand much but it's not your fault, it's mine for not educating myself as I should.
I would like to enter the pool before the closing date, and I just removed a delegation that so far has not given me any benefit, as soon as it becomes effective I delegate it to your project.
I have also seen that your account makes good heals, so I hope you are successful in your growth and I can be part of it.
Thanks for sharing all the information! I am new to Hive and I am currently learning about everything how it works. There are many interesting posts and topics yet to discover. I am trying to be regularly active and post and contribute too! Have a good day everyone. Great work and thanks for sharing the information.