So the Uniswap hype has proved to be real, and wLEO has provided quite the price pump over the last few days, LEO has not hit parity with HIVE but has been selling healthy above the HIVE price. The lack of tokens, the demand on Uniswap, the strength of ETH are providing market markers with an incentive to move their tokens out of LEO and into Uniswap.
You are coupled with the fact that there is an LEO bounty for those providing liquidity that should net you a pretty penny at currency prices. I just read @jrcornel post on how much of the bounty you'll get and on principle, based on this post you should get around 24% ROI in tokens at the current price. If the price increases who knows where your ROI will end up.
I totally get the buzz around the liquidity pool, but I've yet to jump in, in fact, I've gone the other way and continue to stake instead.
Market making is excellent, it's part of the new ecosystem now, and it's exciting with rewards on that level so I can see why staking can seem boring since we've always had it, but here's my case for why I've chosen staking over market making.
Fixed reward pool
According to @leo.stats, around 6200 tokens are minted daily, and about 250 monthly active users are competing for those tokens.
I am not sure how this is split between miners, curators or authors, but that's what gets created every day. So you have very few tokens to compete for each day, and while there are a few users, it still makes getting a token allocation pretty high. Yet, as more users come in, those 5,10, 20, 100 tokens you could get are going to be much harder as curators have more to choose from to distribute tokens to and your stake will count for a lot more.
So the rewards you are getting now are an absolute premium, and as the user base grows, you're going to be kicking yourself for not keeping those cheap coins you earned which are even cheaper than buying.
If you combined your earning with picking up a few cheap buys here and there, you could be a real winner in this game of staking.
Fewer coins competing
As coins are now being unstaked and stripped from the HIVE ecosystems and wrapped up in ETH, it means fewer tokens used to stake to compete for curation rewards. This means the more you stake; the more competitive your stake becomes when competing for rewards, and the more you can earn.
Coins are burned
Coins are being burned by add revenue from 3rd party ads, as people promote content on LEO, as LEO dex grabs fees from users and I am sure there will be more sinks in the future. As tokens get burned, the supply gets less pushing up the price and those staked towns you have to get a little more powerful in their curation as they are less active tokens staked.
Scatter coins and dust
Plenty of users are cross commenting and curating on various front ends, and as a result, LEO gets dumped into their wallet, in some cases that LEO goes there to die. Users don't see it or think about it or know about it and may not be staked, or it is staked but not being used and that means fewer tokens competing with your stake for active curation rewards.
Getting a bigger piece of the pie
Staking, while bigger accounts continue to power down to chase the liquidity pool gives you a greater chance of building your account for future efforts. If the Uniswap listing is anything to go by, the LEO team isn't going stop at just one exchange; this was proof of a use case, so I am sure more exchanges will come online in future.
The more exchanges and external need for LEO the more pressure on the reward pool and those able to mint tokens as they need to create the tokens to sell and supply. IF you have a big stake or miner stake that nets you a healthy income, you become that, YOU are the liquidity provider and YOU set the selling price.
So don't mind me while I keep staking, I'm now just over 5300 tokens and counting, and I will be riding these good times as long as I can.
Have your say
What do you good people of HIVE think?
So have at it my Jessies! If you don't have something to comment, comment "I am a Jessie."
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