So... after almost a full month after PWR dividends I've decided to break my own words regarding the PWR liquidity pool. For transparency I'm writing this post and announcing a couple adjustments (Which I believe will be pleasant to LP's).
The thing is that the other day decided to try something and bought ~1500 PWR with my own funds. I was aware that I would move the PWR price up but whatever. I was curious to see if people was ready to arbitrage the price (down to 1:1).
So I brought the PWR price up to 1.1 HIVE... and two days later, price is still at 1.1
No problem. Glad to see it. People already into the pool is feeling comfy and chill. I like it.
Clearly there's not much selling pressure, and the little remaining is being scooped by a few happy holders and myself.
After almost a month it is evident that the introduction of dividends has been a success. Downside is that the initial APR has been lower than expected. And with that bittersweet taste, I decided to give an APR push to the PWR-SWAP.HIVE liquidity pool.
I took the following measures (already LIVE™).
- LP from @vventures has been removed from the pool (current liquidity = 47K HIVE).
- Arbitraged the pool with project funds (from 1.1 PWR down to 1). Ended with ~6300 HIVE and ~3700 PWR.
With those funds I did the following:
- 1300 HIVE & 1300 PWR added to the Distribution Contract (Updated APR: ~25%)
- ~5200 HIVE Powered Up to @vventures (Always has been the goal).
- 2000 PWR taken out of circulation (sent to @empo.issuer and hence due to be distributed over time to delegators).
- 400 PWR staying in wallet (Have to pay for server & witness costs in a couple of weeks).
~25% APR!
Yes, you read it right.
If you're pooling into the PWR-SWAP.HIVE Pool, you're receiving a 25% APR.
Note that this pool has a depth of 47K HIVE and impermanent loss is partially minimized as PWR is soft pegged to HIVE.
Also remember that those rewards are already locked out into the Distribution Contract and will be active for almost a year (~350 days while writing those lines). No new inflation paying those rewards. It's already minted.
If you want PWR you can only delegate your HIVE Power to @empo.voter and you'll receive a 8% APR paid daily in PWR tokens (or buy it from the pool, but I strongly suggest to farm it rather than buy it).
Final Thoughts
I do not want to mess with the pool in times of volatility or when half a year of the pool's life span has passed.
That's why I thought it would be better to take action now.
I trust that even if some pool participants want to leave sometime next year. The increase in APR will be enough incentive to keep other participants buying PWR.
Quick maths: 20K HIVE exiting the pool would increase the APR up to ~44%
In the meanwhile; @vventures is accumulating HIVE and compounding non-stop.
Have a happy week.
@commentrewarder set up as beneficiary (3%).
Check Hive Power Ventures Docs: https://hive-power-ventures.gitbook.io/hive-power-ventures/
Vote for my witness (100% of witness rewards go back to @vventures)
Delighted to see this. The pool is definitely an enticing prospect now. The other thing that I value highly is the consistency and reliability of the delegation payouts. Thank you for setting up a well thought out system.
LBI is delighted to have a long term position in the pool, and looking forward to continuing to build it up.
Cheers,
JK.
adjusting LP rewards has been something we've had to do a few times in the past as well, but I guess in the end it won't matter too much as long as there's liquidity there for the big traders and the project isn't just going to end up like 99.9% of other tokens being created daily outside of hive:
Awesome news! Thanks for the update. I think more people must be delegating because I noticed my liquid PWR isn't growing like it was.
Personal delegating rewards don't fluctuate depending on other people delegating, you're receiving 8% paid in PWR and that's it.
It's not like other projects like for example holozing where they have a fixed 200K daily pool of ZING for delegators. If more people delegate at the same time to empo.voter, more PWR is minted daily.
The thing which fluctuates is the APR on the pool.
Have a good Sunday!
Didn't know this, interesting!
Although we won't be changing zing delegation rewards based on this, it's definitely something I've been playing with when it comes to player rewards once the game is released.
Ah, okay. That makes sense. Thanks for the info. I guess I am just crazy then! Is it possible I am getting less from the pool because more people are in it?
how can i join the liquidity pool?
Best way is through beeswap IMHO.
https://beeswap.dcity.io/pools/add?pool=SWAP.HIVE:PWR
If you need a bit of more help, let me know.
You can also check the documentation of the project (although there's no guide on pooling here though).
https://hive-power-ventures.gitbook.io/hive-power-ventures
Gnight!
ok. gotta get me some PWR
thanks
!PIZZA
Wen divs for the divs?
25% APR is much more , and 8% APR on delegation. It's too much. very good and
very good.
That's awesome! Thank you!
25% APR is fantastic! 😁
!LUV
!BBH
!DUO
@empoderat, @bulliontools(1/1) sent you LUV. | tools | discord | community | HiveWiki | <>< daily
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Hey, I don't understand anything, but it sounds great. I'll have to do a lot of research to learn about this. It sounds interesting.
In short: PWR is a token which you receive daily at a 8% rate on ur delegated Hive Power onto @empo.voter; hence, this is a delegation service.
I also recommend you to check the documentation: https://hive-power-ventures.gitbook.io/hive-power-ventures/
Whatever doubt, don't hesitate to tag me and ask :)
COOL THANKS, I'M GOING TO CHECK IT OUT, I'M INTERESTED
@empoderat, I paid out 0.563 HIVE and 0.107 HBD to reward 6 comments in this discussion thread.
Solid LP pool and good APR… hmm 🤔 I’m feeling the PWR fomo 😢
@empoderat! @bulliontools likes your content! so I just sent 1 BBH to your account on behalf of @bulliontools. (1/20)
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$PIZZA slices delivered:
@eolianpariah2(2/5) tipped @empoderat