Liotes - The Magic

in LeoFinance2 months ago (edited)

In this post we would like to present you the magic of the Liotes project...

When you buy LENM miners, you will get payouts in the LEN token (Liotes Energy). What is magic is that LEN tokens will gain value constantly over time…

Liotes  The Magic_play.jpg

3speak wasn't working when we uploaded this post, so you can watch the video on Lbry

The Liotes Fund

The central point of the project is the liotes fund. 100% of the sales of LENM that we make is put in this fund and powered up. The Hive Power on this account is then leased out and we get daily or weekly interest payments.

25% of all the interest payments will be dedicated to buy back LEN tokens.

Let’s make an example:
The liotes fund has 2000 Hive Power. It leases this Hive Power out at 10% APR. It gets 200 Hive in Interests payments which is around 4 Hive per week. 25% of this is used to buy the weekly supply of 1000 LEN which means that 1000 LEN would be worth 1 Hive.

Now let’s see what happens if the liotes fund has 20’000 Hive Power. With 10% APR, it would earn 2000 Hive interests. Which is around 40 Hive per week. This would mean that with 25% of this 1000 LEN would be worth 10 Hive.

What you can see from these two examples is that if the fund doubles in size, so does the value of the LEN token.

The more the fund grows, the more the value of the LEN token grows in a linear relation.

How does the fund grow?

The liotes fund has several different income sources. All these income sources are added together to make the fund grow.

Sales of LENM

Whenever a LENM is sold on the market (only if it bought directly from liotes), the income will go 100% into the liotes fund

25% of all the earnings of the project are reinvested

25% of the interests generated by the project are reinvested in the fund. Like that the fund grows even if there are no new LENM sales

Organic growth built in the hive blockchain

Whenever you have Hive Powered up, this stake grows at a rate of about 3.2% per year. The fund will grow just thanks to that.

Additional income sources

50% of the interests generated by the project will be used to develop additional income sources. These income sources will be developed one after the other until they are self-sustainably generating income. The biggest part of these income sources will be reinvested but 10% will be used to grow the fund.

How will the buy back program work?

There will be a constant supply of LEN tokens created by the LEN mills every week. We will leave a basic supply of about 5000 tokens on the blockchain. For all the tokens that will be above this threshold, we will create buy orders on the market. Every week we will cancel all remaining buy orders and with the new funds create new ones at the new price.

The LEN tokens that are bought like that are all sent to @null.

What is Magic here?

The Liotes Fund can only grow in value and there is a multiplication effect built in. The bigger the fund is, the faster it will grow. Since the size of the fund has a direct effect on the buy back price of the LEN token, the value of this token will grow in a linear relation to the fund size.

At the beginning it's probable that LEN won't have that much value but it's value will grow over time in an accelerated fashion.

P.S: In the next post, we will talk a bit more of these additional income streams...


Liotes

A project run by @ph1102 and @achim03

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There is no magic. You get rich slowly over time. I like this idea as its very similar to how SPI, LBI and other dividend tokens always reinvest a portion for future compound gains. I like it when tokens are economically sound.

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The whole "magic" lies in the compound gains.

You are right that it's not really magic lol. But we try to make things look that way ;-)

Great job Achim and Zoltan, and really well thought out, this is a great investment.

Thanks for your kind words, Erik. We hope that it will be!

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You guys put some effort into this and you deserve to earn money if it works.

Now, let's say I want some edge too, for being an early adopter buying discounted Mills. With your 2k effectively bought at 2.1 a piece we need to sell 13k Mills total to raise 52k (2k+5k+6k contributing 2k+20k+30k Hive to the fund in founder+discounted(4)+regular(5) rounds) to reach the point where my price tag (4.0) for the mining power starts to beat the average.

We are talking Mills that produce tokens competing with around 2.3k LEN premined by your early Mills with no competition in the first 16 days in an environment that seems to aim to stabilize the circulating supply at 6k longterm.

Get me more excited right now. Start the ball rolling.

Thanks a lot for this interesting comment! Honestly I haven't looked at it from this perspecitve and I'm happy you mentioned it.

First of all your calculations are spot on:-). It's totally accurate that we would need to sell 13K Mills to reach the point where the average price for the Mill would exceed 4 Hive each.

Our mills are a bit different from normal miners. If more LENM are sold and staked this will affect the buy back price of LEN positiviely in a linear fashion. At the same time the probabilty to get a payout from LENM is dimiuishing also in a linear proportion. This means that if there are more miners staked and running, your income will more or less stay stable. Therefore there is not a real competition between miner holders. The only problem would be if you hold less than 0.2% of the whole supply of LENM. In this case, you might not have the probability to get 1 payout per day (we are trying to find a solution for that).

However with more capital in the fund, the machine will start accelerating and we will all be profiting.

All this to try to explain that we see this as a community adventure where everybody involved should be able to profit in a similar way. The discounted miners should be an incentive for early adopters. When looking at our initial investment, we invested 4200 Hive into this project but we also put some serious quantity of working hours into it and this price was a kind of compensation for that.

I hope this all made sense and we would be very happy to have you on board :-)

The only problem would be if you hold less than 0.2% of the whole supply of LENM. In this case, you might not have the probability to get 1 payout per day (we are trying to find a solution for that).

There are always some people who drop 20 bucks or so and expect to mint a meaningful token 365 times a year and they are tough crowd to please. Sooner or later, someone sets up a mining pool for those who insist on getting their 0.01 every day (not that it makes any difference with a fair mining algorithm).

Sooner or later, someone sets up a mining pool

At that point, if nobody does it, we probably will...

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Awesome to see others checking the math and the idea! Thanks a lot for the feedback!
You did a great job with your example and math...

in the first 16 days in an environment that seems to aim to stabilize the circulating supply at 6k longterm.

You got it right with this also... Yes, it will help to stabilize the supply, especially at the beginning until "the ball starts rolling"... Just want to remind, that anyone can buy 1K Mills and be the same as us, or more... In the "mining lottery" we are all the same, and mine more-less the same amount in the long term...

On the other side, we have no intentions to sell our "pre-mined" LEN tokens for peanuts at the beginning when we know the real value of the project and all the other stuff that we plan to implement...

Speaking of that, this is only the beginning, there is a lot more to add on top of this...

Thanks again... I have enjoyed reading your comment! I was calling people to DYOR, and you did it!

!ENGAGE 10

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Thank you for your engagement on this post, you have recieved ENGAGE tokens.

Well personally, I found it rather easy to follow everything, but then again I'm into this kind of stuff ;-)
Great stuff, looking forward to the sale!

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Hehehe... You knew all of this even before we put it on the paper... :) I will try to create a content tomorrow about something that you don't know... lol... At least, I will try it... :P

Thanks for the support, man! Appreciate it!

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I am not into games and stuff but I also found this very easy to follow . Maybe this game will turn my perception of games on blockchain.

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I do not think it is meant to be a game. There are some hints it might evolve in that direction but it is an investment fund right now, no decisions to made (buy/sell share is not a gaming decision, boring funds have these as well).

This is too powerful a project to be. I hope the launch date still remains 9th March?

We are still planning for the 9th March 2 pm CET ;-).

Magic!! 🪄🧙‍♂️

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hehehe... It looks like magic, but it involves some hard work in the background... (probably like when magicians do in RL... lol) :)
Thanks for the support!

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For me the key is what the other investments are outside of Hive and how effective they become.

Are you planning to have a "low, medium & high risk" portfolio such as some DEFI, some staking, etc. ?

This is what will differentiate your project from others imo.

When will the mills be available. I will support the project of course as you have supported Rising Star for so long!

Cheers,
Jux.

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Are you planning to have a "low, medium & high risk" portfolio such as some DEFI, some staking, etc. ?

Actually, this was my topic that you will see when we release the post for today... All that we are doing at the moment is a "low risk" (or maybe even no-risk) portfolio, where we try to create base token that will be stable in price... By that, it should provide investors that "minimum profits" (let's say 10-12%) that they can do it if they curate themselves...

The next step will be to go further on that by building on top of the base level and make additional %, without risking the base layer (level)... Actually, we have touch this phase already with out personal investment in the project, but we will do a lot more in the future...

But firstly, we want to create more things INSIDE the project, and try to make value here by adding "mini-projects" (like you are doing by adding new parts in the game, step by step)...

I hope that this answered your question(s)

When will the mills be available. I will support the project of course as you have supported Rising Star for so long!

Thanks for the support!

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I like it!

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We like it that you like it! :) This is actually just a core layer... More to come... Maybe it will not be that juicy from the day 1, but it will be for sure down the road... ;)

Thanks for the feedback!

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The Hive Power on this account is then leased out and we get daily or weekly interest payments.

I just checked dlease and the maximum APR was at 14.9% . If this is the case , will you be considering delegating to @leo.voter or some other similar project which provides you more APR and sell the tokens for Hive ?

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The objective is to get the best return of course. At the moment we have 1K in dlease 0.5K in leo.voter and 0.5K in ctpsb. We will try to have the delegations a bit diversified. For dlease there is the problem that you need a certain amount of tokens to fill a delegation. This is more adaptable with leo.voter for example. So we will try to play a bit with that to get the best results.

That's the best way . Delegating to more projects because if you want to delegate 5k or 6k Hive on dlease you will have to compromise on APR since not many offer more than 15% APR for such huge amounts ( atleast as I have observed ) .

Exactly and in general leo.voter offers the best flexibility. I we go 100% with leo.voter this would mean that we have to sell leo for hive which could have a negative impact on the price of leo and we don't want that :-)

I totally understand what you are telling .

I personally prefer diversification of leasing/delegation too .

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Impressive Another Project to be added to mylist to read about and study

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Thanks for consideration, Natalia! I hope we will have you onboard for the journey!

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The only problem would be if you hold less than 0.2% of the whole supply of LENM. In this case, you might not have the probability to get 1 payout per day (we are trying to find a solution for that).

So, unless you guys find a solution for holdings less than 0.2%, when the full 5000 LENM mills are bought at 4 Hive, one would need 10 LENM to have 0.2%. Funny, that's exactly the number I had in mind for starters, without making any calculations.

Then, of course, more would be needed to keep that 0.2% ratio as more LENM are bought.

Well done so far, and I read there's more to come in the future from liotes! :)

To be honest, if you do the calculation for other miners out there, you will be surprised how bad they look... Our primary goal was to secure the best solution for every LENM holder, including smallholders... There are some limits on the Hive-Engine token creation side, and this was really the best solution that we could figure out...

But, as I said, the mining pool is a kind of solution, and my personal experience running the WORKERBEE pool showed that it works very well...

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LENM will be my first miners :), so I'm not very familiar with these limitations. All I know is that you needed more of them (how many depends on competition) to produce rewards regularly. And that they are generally expensive for my budget.

Pooling seems like a good solution for small holders. Should I join a pool with 10 LENM, or it's ok on my own?

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Pooling seems like a good solution for small holders. Should I join a pool with 10 LENM, or it's ok on my own?

I have mentioned that we will be maybe doing the pool thing in the later stage, not immediately... :) So, at the beginning, you will be on your own, but we can mention @achim03 and he will be maybe more precise about expectations with 10 LENM, as he likes math challenges :)

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I have mentioned that we will be maybe doing the pool thing in the later stage, not immediately... :)

I seem to only read in diagonal and remember what I want. :)

Achim to the rescue. Seems he will write a post expanding on the topic.

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We are not ready for pooling yet because we would first need to make the LENM delegatable.
I will write tomorrow a post why it doesn't really matter how many LENM tokens you own :-). At the beginning you will be perfectly fine to go on your own with 10 LENM.

OK, that sounds fine. Thanks for keeping us informed.

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