SPEW pool - first payouts sent - full update.

in LeoFinance2 months ago

A short time ago, @leofinance sent out the first round of bounty payments to those providing liquidity to the WLEO/ETH pool. You can see their full post for all the details.

Since then, I have processed and sent out the first payout to those contributing to the SPEW fund, where a number of users have joined together to share the experience and enable smaller accounts to get involved.

Here is the details of the first payout:

SPEW payout 1.png

Notes:

  • Received 1784.238 LEO total bounty.
  • 356.848 LEO sent to @spinvest-leo to cover admin fee.
  • 1427.39 LEO distributed to 20 participants - worth a total of $345.43

Once these payouts were sent, I have rebalanced the pool info to allow for extra funds received over the last 2 weeks. @oakshielholding has added 591 LEO to there investment, and this means that for the next 2 weeks, the new pool shares are as follows:

new pool share.png

So the total return on investment looks like this for the first two weeks:

total gains.png

43.27% total gain over the 2 weeks. If you had just held you LEO and not joined, you would have gained 73%. Because the value of LEO has increased from $0.14 to $0.242 over the week, and ETH has gone up by less, over the first 2 weeks you actually would have been better off not in the pool, and just holding your liquid assets. This deficit is exaggerated a bit as normally Impermanent Loss is considered based on pooling both assets equally, whereas joining SPEW only required sending one asset - and it just so happened that that asset was the one that went up in value the most.

Every investment has an opportunity cost, and the question to ask yourself are:

  • Would you have held for the 2 weeks?
  • Would LEO have gone up in value if people had not pooled in to WLEO/ETH in the first place?
  • Will the first 2 weeks result (72% increase in LEO price) be repeated.
  • Is a 43% 2 week gain really that bad?
  • Have you learnt anything from being part of this?

The calculation for those that added ETH would be very different, but after 4 hours of working all this out and sending payments, making this post, etc, my head hurts and I'm done calculating stuff for the day.

I can assure you that unless LEO continues to go up rapidly, being in SPEW will be beneficial in the long run. If anyone does want a "non-urgent"withdrawal, let me know and it will be processed at the next review/payout in 2 weeks.

Remember, you can check and verify any of the transactions at any time by checking the @spinvest-eth HIVE engine wallet, and by checking the etherscan page for our Ethereum wallet: https://etherscan.io/address/0x9744df35394b77860337d4b17a844b87ef341e83

I have rebalanced the pool to account for the new contributions (from @oakshieldholding) and now the starting point for the next two weeks looks like this:

start of week 34.png

Full transaction record:

trans list 2.png
trans list 1.png

Uniswap pool info:

current pool stats.png

Liquidity Vision pool stats:

liquidity vision stats..png

OK, that's enough data and stats to sink a battleship. If you have any questions, let me know in the comments. I'll be back this time tomorrow to check in and clarify any questions.

Now, where is my Panadol...

Cheers,

JK
@jk6276 for @spinvest and SPEW.

Tagging all participants:

@spinvest, @jk6276, @tandara, @forexbrokr, @tbnfl4sun, @pouchon, @eirik, @shanibeer, @oakshieldholding, @jocieprosza, @josediccus, @roger5120, @stortebeker, @mistakili, @steemitromney, @underground, @dera123, @deflacion, @roleerob, @flemingfarm.

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So great!

Posted Using LeoFinance Beta

Thank you @eirik

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Thank you for the investment of your time and effort into this project @spinvest-leo / @jk6276. I do not take it for granted. I hope the 20% helps you recoup at least a bit of it, but only you could say for sure.

The fact investing in this pool was less profitable than simply holding LEO is interesting. I am one of the ones contributing ETH, as well, but I am not concerned with it more than what you have presented here. As you say, I think over time it will work out just fine. There are no guarantees in life ...

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Thanks for the nice words, much appreciated.

500 leo = $70 Starting,
0.25 ETH = $80.24 starting. total $150.24

If you weren't in the pool - 500 LEO = $121 - 0.25 ETH = $91.88 - total $212.88
gain if not in pool (HODL) - $62.64

In the pool - asset value increase is $57.88, plus payout is $7.40 Total $65.28

You are $2.62 better off having added to the pool than you would have been just holding the assets. :-)

It's interesting how that has worked out, It wasn't something I really anticipated or planned for - but there you go.

I know I said I wasn't going to do the math, but I was curious.

Posted Using LeoFinance Beta

Okay @jk6276, I didn't want to trouble you with that, but I most definitely want to thank you kindly for the input! It is interesting to know the addition of some ETH favorably changed the ROI.

I am pretty settled with my decision to "jump in," so comfortable now with "riding it out," for the next 3 months. We'll see from there!

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Nice work! I love the pool idea and am glad to see the turnout thus far. I also still hope you guys can get more users in who may not know of the opportunity yet. Not just because I like seeing JK have to work hard to pump out the numbers but because of the long-term opportunity for them and for LEO, especially as we enter more pools and create sustainable and ongoing LP incentives.

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Thanks @khaleelkazi - part of the reason it has taken me a fair bit of time is because I'm pretty crap at using spreadsheets. To much manual work.

There are a number of people who are only in the WLEO/ETH pool because of SPEW, and that's pretty cool. $10,000 being managed here, I hope people are checking my homework.

Cheers.

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everything perfect from me, I'm glad to see the numbers here and the transparency of the background, thank you very much for taking all this trouble

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Thank you, glad you are happy with the progress so far.

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Very awesome! Thanks for the update and the transfer. Everything was well received. Oh, I could have made more just by holding it? Well, whoopty-doo! That may still change in the future, and this way I'm doing my part of getting LEO out to the masses. And it seems to work. So let's keep this going.

Thanks mate. Yeah the bounty over time should cover the opportunity cost. I worked out for someone else that being in spew gives the same outcome as if they had done the pool solo, aside from the 20% smaller bounty. I was pretty reassred when I checked that.

I really appreciate your support.

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Can one still join the initiative?

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Yes, definitely. I have a 500 leo minimum for new entrants, as that was the initial entry requirement.

If that's ok, just send the funds you would like to add to @spinvest-eth. Anything sent won't be processed untill after the next payout in just under 2 weeks. This is necessary so I don't have to pro rata anyone's payouts.

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Maybe I'll wait till then

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Hello Jk, thanks for this initiative, I have a question though.

When calculating the present starting value of asset invested in USD. For example 500leo

500*0.242=$121

But we have $96 up in the charts, sorry don't mind my pleb question, just a little clarification on that, thanks.

Posted Using LeoFinance Beta

After 2 weeks in the pool, the amount of tokens we own now is different than the starting amount. Liquidity Pools are a very different beast to "staking" as we know it on HIVE. for example, originally, SPEW had a total of 24648 LEO and 11.11 ETH. We now have 20,329 LEO and 13.48 ETH. And the only transaction made since day 1 was today when I added another 591 LEO in from oakshieldholding.

To work it out, everything is converted to USD. Your initial contribution was $70 - 0.99% of the total. Perhaps the columns on the chart should be named differently.

The best way to think about it is all in USD - you put in $70. after 2 weeks it is now worth $96. Plus you got a $3.43 payout

Does that make more sense now?

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Okay thanks for the clarification, it makes more sense now

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Thanks for running the pool and all the math!

At the end of the 90 days or anytime before when requesting withdrawal, how is the amount of leo calculated? Just our current percentage times the total leo balance? And I cant remember if we earn any of the pool fees.

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The pool fees get gradually added in to the pool, and just reflect in the general asset values - they are not accounted seperately.

When a withdrawal is requested, all calculations will be based on the USD share of the total assets at that time. Because of the nature of liquidity pools, the number of tokens may be different to the starting point. As people put ETH in the pool (not SPEW, the overall pool) they are taking out WLEO. This pushes the WLEO price up, but means there are less tokens in there (and more ETH).

For example, if you wanted a withdrawal, right now, based on the above numbers, your withdrawal amount would be 1078 leo. This is less than the 1200 total you deposited. As it stands right now, SPEW has "lost" WLEO and gained extra ETH.

Basically, the funds you put in give a percentage share of the total assets, 2.64% after adding your new funds in. For a withdrawal I take the total pool assets USD value * 2.64% (would be $260.96. with LEO at $0.242, that equals 1078 LEO.

Does that make sense - I think I confused myself trying to explain it.

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Thanks for the explanation. I had expected to earn some of the eth gained to make up for the leo loss.

I will just have to expect a net loss of leo at the end of the 90 days. Oh well at least I am supporting leo by being a part of the pool.

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Received mine, thanks.
Just want to ask if 'total after fee' consists of fees earned or they will be available after liquidating/removing pool's contribution to liquidity? It's more like a general question on how it works

Screenshot_20201010-083028.jpg

When the bounty comes in to the account - the 20% fee is taken from the total amount. The remaining funds are then split among everyone, based on how much USD value of assets put in. The fees earned by the pool itself are fairly small, and don't appear as a seperate balance anywhere, the pool just has slightly higher assets in it.

Does that help?

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Actually no 😅
I was asking about fees earned by providing liquidity - the one that is paid by users who swap tokens.
Forgive me not asking it properly.

The swap fees payed by traders just stay in the total pool and add to the total assets.

I can't even find a site that tracks the fee income a pool earns seperately. Not for uniswap anyway. There must be something out there to track that, but I haven't found it yet.

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Thanks for clarifying this for me

Thanks again @jk6276. Your work is very much appreciated!

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Thanks mate.

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Beautiful, it was awesome contributing to the pool. I'm not concerned with how it might have turned out differently should I had held my Leo but then we look towards more opportunities for the future.

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awesome, thanks for the encouragement.

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Hi @jk6276 is the opportunity to provide liquidity for the pool still open?

Hey @joetunex, yes but refer to my answer to tomlee in this comment section for the details.

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Thanks I will