The LEO reward pool balancing has begun

in LeoFinance7 months ago (edited)

I was just reading this post from @onealfa where he talks about the rewards for joining in the Liquidity Pool

https://leofinance.io/hive-167922/@onealfa/50-apy-is-it-posible

And at one point he is saying he might not want to keep in 33% as originally intended but put more into curation.

Probably I have to reconsider my initially planned ratio of my STAKED tokens vs Pool's LP tokens. 🤔

And he is correct in this situation.

We have to realise is that we have a LEO Scale

scale leo.jpg

The full rewards pool is split into 3 parts:

  • 70% POB - Proof of Brain: Curating
  • 15% POW - Proof of Work: Mining
  • This one is new, let's call it:
  • 15% POS - proof of splash (from jumping in the pool, get it?)

The returns from the Mining cannot be changed much as all of the miners have been sold and are staked so they are churning out their returns daily.
But the fluctuation between POB and POS can really affect the returns provided for those participating.

So let us use a whale like @onealfa as an example for the moment. Imagine he has about 800k LEO staked (I believe it is more now)

Let us entertain a few scenarios here:

  • He unwraps 300k and stakes it all. That means the Liquidity pool drops from 950k to 650k LEO and we all make 30% more. It also means that there is about 8% more staked LEO and we all get less curation and author rewards.
  • He powers down and puts it all in the pool the inverse will happen.

image.png

And this is what @khaleelkazi was talking about in one of the last posts.

The ecosystem will take a look at the rewards and it will follow the ROI till everything is in balance. This whole thing is going to be fluid but balancing at the same time.
This is really exciting to see happen and interesting as an economical experiment. As @taskmaster4450 keeps saying in a way in a lot of his posts, times are changing and we all better keep up.

I have my stake since day one
I have my miners
I am now powering up my LEO to keep my part in balance.
So by having all 3 I am taking part in all earning possibilities out there and hedging my ROI

What are you doing to get the best returns?

Posted Using LeoFinance Beta

Sort:  

It's an interesting one isn't it - problem is you do kind of need to stop powering down and then up again in order to assess what your real ROI is - or at least keep track of how your stake changes!

Easier said than done for the tribe-tokens.

Posted Using LeoFinance Beta

yea, it all is still a bit opaque but with the bigger liquidities, the tools will grow as well...

Posted Using LeoFinance Beta

Well you know I'm with you on the diversification argument!

Posted Using LeoFinance Beta

What are you doing to get the best returns?

power up, curate, create content.

Posted Using LeoFinance Beta

I am going to invest in the Leofinance Housing Project on Mars.

Khal and Elon will take us to outer space.

And with LEO, screw the moon, we start at Mars and move on from there.

Posted Using LeoFinance Beta

I like that thought 😎

well, I guess the best roi is still the creation of quality content

Depends on the user.

Posted Using LeoFinance Beta

When the things settle down and balance it will make no difference. More leo more money. The margins will be tight so no point of spilling ink on this.
But that's just me. Oldtimer on the blockchain.

Posted Using LeoFinance Beta

The margins will be tight

but that is the whole point, the beauty of this whole system is that the margins will balance themselves out.

Posted Using LeoFinance Beta

More leo more money.

This should be the Leofinance motto. 😁

Posted Using LeoFinance Beta

 7 months ago 

Two thirds in the pool, one third staked. I'll stake my LP and curation rewards until they're 50:50, then revisit. I'll likely, then swap some for ETH and increase my LP position; but a lot can change between now and then.

ah about the same as me, 5k pool and 2.5 staked

By you engaging in these three, you definitely are increasing your roi

well, I am spreading it to be sure to grab some of each

That's a good idea

My view with LEO is simple.

I put into the LP what I did and I am leaving it there. The pool will do what the pool does.

My stake is used for curation, that is something that I will remain active with.

I have some set aside for the Leo Backed Investment (LBI) that @spinvest is talking about bringing out. I will put a portion of LEO into that to start the dividend stream as well as help put the equity stake on the road to profitability.

Posted Using LeoFinance Beta

My stake is used for curation, that is something that I will remain active with.

Your deeds are proof of that.

Posted Using LeoFinance Beta

Leo Backed Investment (LBI) that @spinvest is talking about bringing out

another thing to check out, thanks

Posted Using LeoFinance Beta