EDS-Voter And APY

Have you heard of EDS-Voter?

This is one of those under the radar projects on Hive that utilizes the features of the system for strong returns. We all know the bulls and the bears are waves that most ride. However, wealth creation comes from yield generated over a long period of time.

After all, Warren Buffett amazed a net worth near $100 billion by doing 20% per year. Of course, he did that for half a century. Compounding returns sure does pay off.

When looking at projects, it is easy to fall victim of the shinny new toy. What I like about @eddie-earner is how boring it is. The reason for this is it fails to attract the attention of the masses. Most people look for excitement in their investing. It is why most likely lose. Unless you know what you are doing, it is a dangerous games. Swim with sharks, you will get bitten.

Nothing is more shark infested than the markets. And trust me, even if you believe you are Jaws, you are likely the boat.

Eddie avoids this.

Let me show you.

EDS-Voter

This is a project that is designed to distribute the EDS token. What his that?

EDS is a token that was created which generates a return, paid out in HIVE. The price is 1 HIVE per EDS. Therefore, any appreciation (or depreciation) in the price of HIVE will be captured in the EDS token. It is not a fixed asset in that regard.

What EDS is a yield instrument. Each week it pays out a certain amount of HIVE based upon ones holding. When figured out on an annualized basis, this provides a solid return.

Here is how the returns look:

The decline is due to the number of tokens being issued. This is what EDS-Voter is all about. The design is to distribute the remaining tokens until they zero are held by the "bank:". After that, the only way to acquire them is to purchase on the open market.

We estimate the yield will bottom around 20%. From that point, the yield will increase as the amount of HP keep growing.

Here is the chart on that:

It is evident there is a steady growth. Boring but effective.

EDS-Voter

The way to get involved is to delegate HP to the account. Here is where the features of Hive are utilized for the return.

By delegating, the HP is used to curate. From this, we see more HP being paid out weekly. This is how it is utilized:

As we can see, this is a feeder system into EDS.

Hence, those delegating to EDS-Voter are increasing their amount of EDS while also watching the value of that project grow. The return will occur as long as more EDS is created, something that will end once all are distributed.

APY

Here is where things get a bit interesting.

Many look at their delegation and claim they can get a higher return curating themselves. That is certainly true. However, when we look at this from a larger perspective, here is what we see:

• Each EDS is worth 1 HIVE. Any fluctuation in HIVE pricing related to other currencies is reflected in EDS.
• The APY in EDS is around 25%. This might drift down to around 20% before reversing. EDS Is a long term project.
• The return on HP delegation is roughly 4.8%, paid in EDS. This means one future yield is increased due to having more tokens at an increasing APR.

Of course, we are focusing upon yield. There is still the speculation aspect whereby one can benefit from major moves up in HIVE.

In Conclusion

Does any of this excite you?

It shouldn't. This is as interesting a watchin paint dry. And that is exactly how it should be.

We are not looking for excitement but a way to earn a strong return over a long period of time. Depending upon what happens to the price of HIVE, this could be a major source of income for people.

Each Monday, HIVE shows up in the wallet of anyone holding EDS. Throughout all four seasons, coins just appear. Once that happens, wait another 7 days and it takes place again.

It is fun to roll the dice on something that can get you mansions and Lambos. however, this is not the best path to wealth building.

EDS follows a very structured pattern. Reliability in terms of return is crucial. This is what yield seekers are always after.

Of course, having a 20%+ return is also nice.

Article by @taskmaster4450le

Posted Using InLeo Alpha