Last week, I did an update post specifically about our DAB wallet, and how it was all progressing. This week, it is time to check on @lbi-eds, and see how it looks.
For those that don't know, EDS is a long running project set up by @spinvest and run by @silverstackeruk. It started with a sale of EDS tokens, which was followed by two miners - EDSM and then EDSMM. As popularity grew, each sale did better than the previous. @eds.vote came along, and it has grown quite significantly. Then cam EDSD, and there was a whole range of options to mint more EDS - all backed by cold hard HIVE power. With a mix of clever tokenomics, and a solid community built on the "Saturday Savers Club" run by @shanibeer, the EDS project has become the gold standard for a HIVE Engine project.
Anyway, there is so much more that could be said about EDS, but that is not really the purpose of this post.
Our EDS wallet.
When I took over running LBI, one of the first moves I wanted to get set up was to establish a meaningful position in the EDS project. With miners sold out, and hard to come by, @eds.vote and @eds-d where the two obvious methods to get in. The @lbi-eds wallet was set up, and funded with 10,000 HIVE. I powered up half, and delegated to the EDS vote wallet, and converted the other half to HBD and bought EDSD.
Both of these methods of minting EDS are not the best short term return on investment options. Delegations of HIVE Power are rewarded with 50% of the curation income. The other 50% strengthens the EDS wallet and stays in the project. Obviously, in the short term, earning half of the curation instead of other options is not the highest return we could get. But the first thing to keep in mind is that the return is based on minting new EDS at 1 HIVE each. EDS routinely trade for way over this, generally up around 1.5 or higher. So that changes the returns back in our favor, to a degree.
The same applies to the EDSD. We send HBD, and get back EDSD pegged to HBD and 100% backed. The EDSD then receives a weekly EDS reward, again based on 50% of the HBD interest that the @eds-d wallet earns. So, again in the short run we could do better just putting the HBD in savings. But ultimately, the fact that EDS always trade well above the peg shows the strength of the project, and gathering as much EDS as possible is the best long term plan.
How it started:
Here was the post I did, a bit over three weeks ago about setting up the @lbi-eds wallet.
https://inleo.io/@lbi-token/lbis-eds-wallet-and-plans-ee9
This was the state of the wallet in the first weekly update post since I took over admin of LBI.
Here is how the wallet looks today.
So, in simple terms, we have added 11 HP through inflation, 66 EDSD bought with post payouts, and almost 60 EDS as rewards. Note that in these reports I always value the EDS simply at 1 HIVE each. The market price fluctuates, but it trends around 1.50 each. So these are conservatively valued.
As far as income, well we didn't get any this week. EDS pays out HIVE once a week. However this week SSUK missed the deadline and payments didn't go out. Next week will be a double pay week. In these early days, the income is not significant - the week before last it was worth just 1 LEO for the week. But it will grow, every week. Each week, we will have more EDS, and the payout will go up every week.
Plans.
Simply keep doing what we are doing. Keep adding EDSD from our liquid HBD post payouts. I would love to acquire some EDSMM tokens, and have mining as another source of EDS. There is a solid number listed on the market at just under 2 HIVE each, which could position us nicely with decent EDS mining for the long term. But to buy them, I'd need to pull over 1000 HBD out of our HBD savings to make the trade. It's tempting, but I'd like LBI token holders opinions before I make that kind of move.
It sure is tempting - please let me know what you think. The EDSMM are priced such that they would yield EDS at around 9% APY, which is higher than eds-vote pays ?(4-5%) and EDSD (7.5%). The more I write about it, the more I think it is a good idea.
So, I did not think the post would end like this, but there we go. LBI holders, should I pull 1000 HBD out to buy EDSMM to boost the long term prospects of the @lbi-eds wallet?
Let me know.
Cheers,
JK
@jk6276
To learn more about LBI, here are some recent posts with more info:
https://inleo.io/@lbi-token/dividends-resume-for-lbi-holders-bci
https://inleo.io/@lbi-token/lets-check-in-on-our-dab-wallet-4wg
https://inleo.io/@lbi-token/let-it-burn-fvd
Posted Using InLeo Alpha
9% looks pretty solid, doesn't HBD have more than that though? IDK
Off-topic, how does mcbot buy LBI at .2 when there is a buywall way above that on Hive engine?
Yes, everything is a trade off. I've had suggestions to use the EDSD instead of HBD to buy the EDSMM - thinking that is a better idea. EDSD is good while HIVE is low, minting lots of EDS - but the good thing about the miners is that it'll mint the same number of EDS whether hive is 18c or $1.80. An investment now, while HIVE is cheap, could be significant when (if) HIVE ever goes up.
I had a little buy wall at 0.58 (which was me with personal funds) which mcbot sold through, and then it sold (not bought) a bit more to the low ball bid in the market at 0.2. I have since added a little more to put the buy wall (tiny though it may be) back up.
Looks like mcbot is arbitraging between the LP and the order book. Buying from the pool and then selling into the buy wall. Good for some volume on the pool.
Thanks for the reply, it makes sense I see now. I saw the buy wall for a while and didn't know it ran out for a bit, lol.
Since we go hard in ssuk projects, why not rug? I believe it's the one with the best apr atm. And then use funds generated from that to buy edsdwhatever
The best APR comes with the highest risk also. More RUG would be nice, but we have a big position in it already.
Dunno, I just want us to have more of everything - tough to work out the right moves, especially when it is other peoples money at risk.
And more money on ssuk projects is also risk. Maybe consider something totally different? I guess buying hive, powering it up and delegating to Eddie earner is a middle ground
!pimp
I'm against. The reasoning? 15% APR with mechanisms to keep HBD at 1$
Plus, I don't see offers of EDSM for 2 Hive.
You should continue to do what you do, but I suggest we should not use our HBD savings and keep compounding them.
Thanks for the feedback. How would you feel if we cashed in our EDSD instead to buy the miners? Leave HBD intact and growing, but use the EDSD instead?
The miner token I am looking at is EDSMM - not EDSM
Thanks for the input - I'm just floating thoughts out so I can gather opinions.
My bad.
I'm not familiar with these tokens. I wouldn't mind if you switched between them without decreasing our HBD stake. I would only feel comfortable with unstaking HBD proceeds if it would be exchanged for Hive and powered up (since the Hive is cheap and we can delegate it for f.e pwr)
That's the other thing I'm tempted to do - swap some HBD for HIVE at these prices. Really don't think HIVE will stay under 20c for long - but my market timing usually sucks so I'm hesitant.
!pimp
I say go ahead. I think EDS has a long standing tradition of providing good returns and we can always earn more HBD. Did you ever look into Liotes?
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