2025 is just around the corner and with it looks like a bull market.
My small project, Hive Power Ventures has been operating for more than a year now without incident. And the PWR token is healthier than ever with a huge liquidity pool for the relative size of the project (33K mcap) and a loyal group of backers and delegators.
Anyway, you know that I like to try to adapt quickly to changes and be flexible in my projects.
And I think we are in one of those moments in which it is necessary to be ready to adapt to market conditions.
In this post I plan to set out publicly how I will be working with PWR throughout 2025, which does not come with some changes to the usual way you are used to.
Overall goal for Hive Power Ventures: More HIVE Power
This has always been the premise and I do not expect it to change.
However. I don't want the project to be 100% staked in Hive Power by the time Hive continues to rise in price to much higher valuations.
That is why I will most likely start a power-down of the @vventures account to capitalise on a hypothetical increase in the price of Hive.
I am not sure of the %. Sometimes I think 33%, sometimes 50% and sometimes I go crazy and think 100% (why not?).
What is certain is that when the time comes you want to be liquid just to have ''the possibility''. I don't want to make the same mistakes of the past where I left a huge % of unrealised gains on the table.
The obvious choice: HBD.
And what to do when selling Hive in a hypothetical top? Well, it's very easy. HBD.
has proven to be very resilient since the introduction of the APR in savings and has endured an entire bear market without major complications or wild (sustained) fluctuations.
The obvious move is much easier said than done:
Sell HIVE at or near the top, accumulate HBD and quietly farm the APR until the next bottom ~2 years later.
And this is what I will try to do with the accumulated HIVE in @vventures.
PWR Future Prospections
If this move goes minimally well, a large amount of HIVE will be sold at the top and repurchased at the bottom, overpegging the project and causing the amount of HIVE under management to exceed that of PWR.
And if this happens, on paper the ''supported price'' of each PWR will be more than 1 HIVE.
Which brings a couple desirable effects:
PWR will transition from a ‘’soft-pegged‘’ token to HIVE to a fully HIVE-backed ''growth'' token.
Since the delegation rewards to empo.voter are calculated on the basis that 1 PWR = 1 HIVE, if 1 PWR is valued above 1 HIVE the delegation rewards increase accordingly.
This is best understood with an example.
Joe has 10.000 HIVE delegated to empo.voter and he's receiving a daily drop of ~2,19 PWR (800 PWR/year or 8% APR).
If for whatever reason price of PWR is let's say 1,2 HIVE, his daily rewards will still be ~2,19 PWR but because he will be able to sell them for 1,2 HIVE each, those 800 PWR/year -> 960 HIVE.
Which makes his 'real' APR 9,6% (and not 8%).
In other words, a higher PWR price 'flywheels' into a higher Delegation APR and Pool APR (but still a diminishing PWR inflation).
TL:DR;
Long-term; the only way to make Hive Power delegations atractive is a rising PWR price.
And this will become my goal as time passes.
Changes to PWR
For this vision to become a reality, PWR should gradually move away from being a soft-pegged token to HIVE.
In practice and for the time being, it means that I will no longer use project funds to ‘prevent’ the price from rising above the 1:1 ratio with HIVE.
However, I will continue to hold the price at 1:1 in case it falls below.
Everything else remains equal for now.
Have a good Sunday.
You sir are a degen, and I hope it goes fantastic for you! look forward to the results, beware the bull trap.
Don't tease the bears
btw @treasure.hoard now that I see your notification.
Yesterday I was poking with the PWR Hive engine market and hit a couple of buying orders from yours. I thought it was one of those nasty market makers and sold some PWR from my stack.
You're fine with that sir? I see that you're into the pool now. I guess it was an intended arbitrage. If needed I can send back HIVE if you return PWR.
(Just asking, show up and take an upvote for the inconveniences).
I was invested in SEED before it was shut down. I was looking forward to join what you would launch after that. I was out of dry powder in the bear market. I'm finally at a point where I can invest some of my stablecoins (DEC) into this. I'm optimistic for the future of PWR and I'm happy to join (after few trades).
today is a good day, check the pool
Than you for the tip!
PWR is awesome, if you can be patient enough to only buy less than 1 HIVE!
The only problem is that the bear market ruined all the dry powder I had. I want to whatever I can to diversify myself after 2025 with some businesses. Dropshipping did not work out for me.
Feel welcome!
Any doubt, don't hesitate to tag me sir
Thank you!
wise decision regarding HBD savings!
the bullish market is also coming for the rest of the altcoins, maybe a couple of months before starting. It will be difficult to predict the top value to start a conversion of HIVE to HBD. do you have any predictions on the price that HIVE can reach? I think that the ATH will be just above $5, it will be more difficult to reach $10
I'm playing conservative and expecting a lot less.
I'll start DCA'ing into HBD slowly when HIVE 1$. But I'll reserve a stack for sure if/for higher prices.
Where do you expect the HIVE price to rise during this cycle? More than $1-2? Thats my base scenario.
Btw, if I got you right, the PWR Token will be held equivalent to 1 HIVE? So it will oscillate (in Fiat) with HIVE rising and falling? How will you achieve that?
Have a good sunday too! 🙌🏻
For me HIVE at 1-2$ it's a decent target. I had to overcome a lot of difficulties last 2-3 years for being stubborn and not selling more at the top.
ATM PWR is soft-pegged to 1 HIVE. This means I'm using project funds to ''raise it up'' to 1:1 if price goes below.
What I'm going to stop doing is arbitraging it down when it goes higher (which anyway is rarer since some delegators sell every day).
And yes, this means that PWR fluctuates in fiat like HIVE does.
Ok, thanks for explaining! 👍🏻
Fantastic work. It has been wonderful to see grow I delegate and then also provide LP on bee.swap happy to support
you're welcome! Thx
You're very welcome
Sounds good to me! I think you are doing some good planning for the future.
Better safe than regret later tho.
Upwards!🚀
@tipu curate
Upvoted 👌 (Mana: 35/45) Liquid rewards.
With hive fluctuating setting the price at that ratio is a good start just to keep watch at things, the idea is to keep both tokens equal and am glad you've found a solution