Exploring HIVE POWER Ventures (PWR): A New Era in Curation Trails
Hello, SPIers, it's not often that I endorse another investment project on HIVE but there is a new one being launched on the 11th of September. Should be an easy date to remember. SPI and EDS will be jumping in on launch day so I thought it would be an idea to write about this and let you folks know about the project.
What's the project?
HIVE POWER Ventures - PWR
You can check out this post for full information but in short it's a tokenized curation trail with a soft pegged to HIVE token that earns a HIVE yield for holders. The operator is @empoderat who previously ran SEED.
HIVE POWER Ventures is a proxy curator meaning the operator cherry-picks from the best manual and automatic curators on HIVE and adds them to their trail. This is pretty neat and if done right could reach a decent percentage of active HIVE content creators. If one curator votes 40 times a day and the proxy contains 10 curators, there are 400 votes a day.
There have been 5000 tokens minted for liquidity and from now on, they will only be issued to people who delegate HP to @empo.voter. The ROI starts at 20% for the first 30 days and then drops to 6% by the end of year 2 and then 0.5% every year after. This sounds bad but it's not, it's built-in token scarcity. The same amount of HP being delegated in would mint less PWR but the income would be the same so the APY per token increase. Fewer tokens and the same reward = increased APY per token. This means you should earn as many as you can while the APY's for delegating is high.
The PWR tokens itself is soft pegged to 1 HIVE. Maybe your thinking, what does that mean? It means it's not pegged but liquidity will be provided using a diesel pool LP with the bar being set at 1 HIVE. It will go up and down and will offer arbitrage opportunities for those who are into that. You can view/join diesel LP pools on tribeldex and Beeswap. The operator has minted 5000 PWR tokens and paired them off with 5000 HIVE to the ball rolling and people who provide liquidity to the LP will earn a 5% reward.
From my POV, a 10,000 LP is overkill and I feel pretty good about PWR being able to maintain peg to 1 HIVE for some time. I guess the operator is just being safer now and not sorry later. To ballpark PWR mintages, 100k HP delegated in would mint 55 PWR per day, 380 per week per the first month, then 306 per week for the next 5 months, then 230 per week for 6 months, then 153 per week for a year and it continues to decline over time. From those tokens, some will be held, some will be added to the LP and the remaining will be sold to stronger hands. A 10,000 HIVE LP will be plenty strong for a long time.
Lastly, HIVE rewards/income from just holding PWR token will not begin until year 2 so 1 year of no rewards for that. Again, this sounds crappy but it's not because earning from curation is a slow process. Your earnings are 1 week behind and it takes 13 weeks to powerdown. Starting to pay out rewards from holding PWR too early will be dust payments and it makes sense to build the project for a year, shill it and grow it into a 6 figure curation trail, stack up curation rewards and then start a power-down when it's worth something and the APY for delegating is dropping to 8%. Sounds good to me.
SPI and EDS are taking part
We'll not be going on really heavy because we can't, our HP is locked up in leasing agreements but I can pull from leo.voter. I have already started a cooldown of 5 days for 9k HP from SPI and 12k HP from EDS. Both of these will be delegated over to empo.voter on the 11th morning.
For SPI
I will take the PWR rewards and pair them off with HIVE in the LP for the extra 5%. Because the token is softpegged, it would not be a stretch to say it's like a HIVE/HIVE LP. SPI will just build at this for at least the first year.For EDS
Sell, sell, sell. Eddie Earner is all HIVE and would sell his own mother for HIVE if she were tokenized. Selling is the only option for EDS. We'll test the LP, lol
There you have it, thats about all i can think about. If your looking to get in asap after launch, you would be best to remove delegations now, like right now and after waiting 5 days for the cooldown, you'll get in on day 1. DO NOT undelegate from @eds-vote to join this.
(Guys we lost the 30k delegation to eds-vote. Im in pain, it hurts in my bum and mouth 🥹)
All in all, PWR sounds to be a good investment to my eye (There's some Irish for you). The APY is not great but with time, it will increase and in 4-5 years, people will be looking back and saying, damn, I wish i got some of those back in the day. I see the model for what it is in black and white. Decreasing token mintage vs the same are bigger curation rewards. When all tokens are minted, the operator could change rewards from PWR to HIVE and there you go, forever increasing rewards being split into a set number of tokens. I think the hardcap is 1 million PWR.
The model is very sustainable and gets better with time and there's no real risk as you are only required to delegate HP and not part with hard-earned liquid HIVE. Providing liquidity to the LP is a little different and could result in losing HIVE or gaining HIVE should it go over the peg which can happen, look at EDS trading at around 1.50 HIVE for almost a year already as an example.
What do you think?
Good, bad, ok, cool, whatever, mindblowing, trash, i'll wait and see, all in?
| Token Name | Main Account | Link to hive-engine |
|---|---|---|
| SPI token | @spinvest | SPI |
| LBI token | @lbi-token | LBI |
| Top XV token | @spinvest | XV |
| Eddie Earners | @eddie-earner | EDS |
| EDS mini miners | @eddie-earner | EDSM |
| EDS micro miners | @eddie-earner | EDSMM |
| CUBlife | @lbi-token | CL |
Stay up to date with investments, fund stats and find out more about SPinvest in our discord server
It sounds pretty decent on paper. I'll probably delegate some HP and then just forget about it for a while and let things accumulate and see where it goes !
Thank you very much for the recommendation!
Allow me to make a couple of remarks:
Exactly on point: according to the curation data from the previous seven days, upvotes from empo.voter have been distributed through +450 posts and +10 comments.
Although it's on the roadmap, it's not yet clear when the HIVE rewards for holding PWR will start. IMHO no one should be participating now on PWR for the sole promise of HIVE rewards (should be done for the generous delegation APR instead)
I have even considered the possibility of supercharging the APR of the pool (as long as the HIVE backing allows it) instead of paying dividends.
But this is something that will be considered as time goes on, there are many unknown variables as yet.
That's the best part I've thought of. The worst-case scenario for Hive delegators is the opportunity cost in case they don't like the project and want to pull out their HIVE (and even with that they will probably make a quick profit through a competitive Hive delegation).
Regarding your strategy with SPI and EDS, you're covering all the angles so you should be more than fine. The best 'safe' strategy should be selling 50% of PWR rewards and pairing the other half with the HIVE you just got (since I expect PWR to slowly drop within the first few months as 'predatory delegators' come and go within the first month and maybe the next 5).
All in all, everything is almost ready, see you on launch day! :)
I have read it but I don't buy into it. I prefer to invest in DeFi protocols where you get the income right away. Maybe you are going to make a nice income with it.