Analyzing DHEDGE Drips
A question came up in Discord about the ROI of the DHEDGE token. Like BRO & INDEX, DHEDGE gives out daily dividends (drips) to anyone who holds it. I like to know things, and prefer to calculate things rather than guess.
I need a user with a decent supply of DHEDGE to be able to calculate a return.
I used DHEDGE token holder @enforcer48 who has over 310 DHEDGE tokens to analyze things.
@enforcer daily drip
DHEDGE drips 18 tokens on a daily basis.
I took the daily drips and calculated the yearly totals for each token and then calculated the yearly Hive value of the drip. I used yearly as it is the best way to get an APY value and some of the drips are too small to get a Hive value based on daily drips.
Drip annual returns
| Token | Daily Drip | Yearly Drip | Yearly Hive Value |
|---|---|---|---|
| BEER | 0.00002576 | 0.00917056 | 0.00191 |
| BEE | 0.00097395 | 0.35549175 | 0.25147 |
| GAMER | 0.0106 | 3.869 | 0.0007 |
| LEO | 0.001 | 0.365 | 1.38702 |
| WEED | 0.00166218 | 0.6066957 | 0.08069 |
| SWAP.EOS | 0.00007825 | 0.02856125 | 0.54267 |
| BRO | 0.00002491 | 0.00909215 | 0.08182935 |
| SWAP.STEEM | 0.00026244 | 0.0957906 | 0.14274 |
| SWAP.HIVE | 0.00020137 | 0.07350005 | 0.07350005 |
| Hive | 0.012 | 4.38 | 4.38 |
| BLURT | 0.137 | 50.005 | 2.25173 |
| SWAP.DOGE | 0.00407567 | 1.48761955 | 0.40187 |
| DHEDGE | 0.00990847 | 3.61659155 | 1.10306 |
| NEOXAG | 0.02383667 | 8.70038455 | 0.0281 |
| PAL | 0.003 | 1.095 | 0.16425 |
| STEM | 0.001768 | 0.64532 | 0.09848 |
| ARCHON | 0.03676660 | 13.419809 | 3.22075 |
| SIM | 1.893 | 690.945 | 2.17648 |
Conclusion
The Hive value of all drips is 16.3872494 Hive/year.
@enforcer48 has 310.62731084 DHEDGE at a total value of 100.953876 Hive at current mint purchase price.
Selling tokens will generally drive the price down due to liquidity issues, and buying tokens will drive it up due to similar liquidity issues, so these numbers are in an ideal world where you can buy / sell without limits.
At 16.3872494 Hive/year it would take around 6.16 years to break-even or roughly 16.2 APY.
UPDATE: Looks like you can mint DHEDGE tokens for a fixed 0.325 Hive. This adjusts the final numbers a bit as you are now looking at roughly 100.953876 Hive to get 310.62731084 DHEDGE.
UPDATE #2:
I was also told you get Hive drip as well, I only looked at Hive Engine tokens, with that factored in it changes the numbers quite a bit.
These calculations are on today's price, and yesterday's distribution, and assumes zero slippage.
Why you should vote me as witness
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I only hold about 150 of those tokens, but that seems like a really long time. Probably long enough that I won't bother buying into any more of them at this point. I hold some of the INDEX token too. I had some spare Hive kicking around and I thought I would pick some of the DHedge tokens up when the price was fairly low.
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If my bank gave me 8.7% APY, I'd love it but in crypto there are a lot of risks when looking long term.
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Yeah, that isn't too bad, but the ROI time seemed very long. Especially in crypto. I guess we get a little spoiled with everything blowing up lately!
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This math is very relative. My husband sold the dogs today in Ulya, which he bought a hundred times cheaper. The payback period is reduced many times, more precisely, the cost of purchasing coins) At the same time, as I understand it, we will earn a little dogs, but if they fly to the moon, it will not be bad.
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@bozz currently market value of Dhedge is up by almost 25% than holding value, that's why APY is lower. Dhedge is offering around 17% APY. It was 13% two months ago but slowly building up. If you bought them at over priced, that's like killing your own ROI when one can just mint new Dhedge at base rate. :)
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I am just saying 12 years or whatever it was seems like a long time for ROI on the crypto side of things. The original Hive is gone as far as I am concerned. Whatever I pull in now is just a bonus. I have probably spent more money on stupider stuff over the years...
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This is all new to me, will take a look - thanks.
There is also BRO & INDEX which are similar projects. BRO has the best return of all of them.
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Well, that's good to know.
Good to know that you'll need to find an alternative source for that 1 mil :D
I'm just a shit token collector these days.
Huzzah! you finally checked the mystical math works behind the token. I held these tokens at some point and only made a profit by selling it higher or arbitrage with minting rates. I don't recall where I picked up the idea about this token not being meant for long term.
It's supposed to be just minting and then waiting for their trading bot to buy back at your target price. Liquidity has always been the issue with keeping them though. But I've been keeping these in mind if I ever want to convert my ARCHON and SIM to DHEDGE.
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As dhedge tokens are not fully minted/issued, I think to use market price for calculating ROI isn't efficient. Currently DHEDGE Tokens can be minted for 0.325 Hive per dehedge by sending to @discohedge. Mint rate is updated hourly depending upon dhedge holdings and it can also be minted using other engine tokens. The mint rate is available on dhedge discord. So people buying at higher prices are just killing their own ROI.
Dhedge APR is about 17%, but I don't know what prices are they taking into account.
Here are dhedge holdings:
Here are rates for new toekns:
Here are hive engine rates:
There is also an option for manual minting:
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I got very different numbers when I calculated it. I used current prices on Hive Engine.
If I use 0.325 fixed price, I get 8.4 years, or 11.8% APY which is a bit better but not 17%+.
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Was curious about the returns on DHEDGE, thanks for crunching the numbers for us 👊
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I know nothing about tokenomics but I love getting Hive paid into my wallet each day AND getting drips of all those other tokens into my Hive Engine wallet! I'm not a trader, but I love the dividends II receive from Dhedge!
After reading this, I still wonder if an IV drip of this is gonna be worth it for me. I need to sleep on this. Might
dripdrop into the discord first, before making a decision.Thanks for the write up.
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Well, that's good to know.
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Hope it goes like this lol. 1500 coins are already in my wallet. ....... it seems to me that this project is no less interesting than BRO, and the market value of the coin will increase by 2 dozen times, at least.
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Great post! I was wondering if you know whats the minimum amount of hedge to hold to gain dividends?
I think you can get divs with only 1
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take a look at DRIP token. We started staking rewards of 149% APR and pay out daily swap.hive. Much easier to calculate, just one token. We also plan to increase payouts monthly. Cheers