Good day to all those in the LBI world of things.
We got some news last week that only reaffirms our viewpoint: Leofinance kicks ass.
When we started LBI, the idea was to support the community and provide a fund that could offer outsized returns to people. Through the use of the "collective", we hoped to leverage passive investing with active participation to create returns that would be larger than what most could do on their owns.
Yield Increase
Since inception, it appears we got involved with the right group. That said, the days of growing returns is not over. We are seeing more added to the equation.
To start, on Hive itself, the Witnesses raised the interest on the Hive Savings to 20%. This was up from 12%. It is important to note how much one can accrue over the long-term at 20% APR.
Keep in mind the goal of LBI is to earn 20% each year. This one opportunity could provide that.
The second piece of good new, and one that hit closer to home, is the new Ad Revenue model. This is an important feature and one that is highly applicable to LBI. Being one of the larger holders of Leo Power, an increase in return here can only benefit the fund.
According to the linked article, the present estimates, based upon the $4,000 per month in ad revenue is that it will add roughly 4% to the return annually. This is nothing to sneeze at. We will certainly take 4% on top of all else we do.
Of course, that is based upon the present ad revenue. We could see this going higher. How so? What happens it we triple the ad revenue? Going from $4,000 t $12,000 might sound like a lot but it really isn't. Money from ads can get huge. Leofinance is looking at tapping into this.
Most importantly, what happens if the site can generate 10x more in ads. Suddenly the APR would be roughly 40% on the ads alone. Think about that for a second. The portion of LBI that is in Leo Power would be turning out 40% annually. That is before we even push a button to curate any content.
Is this possible?
Again, ad revenue at that level is not Earth-shattering. A site pulling down $40K per month is not considered that big. With a MAU of around 1,000, we could do that, most likely, with around 7,000 monthly users.
Obviously the amount of LEO that is distributed is growing. However, the ad revenue payout only applies to Leo Power. Hence, with more options arising for the use of LEO, users will have to decide where they put their holdings. We could see a situation where the gain by LBI on its LP grows as other people unstake and use the LEO elsewhere.
Keep Developing
By hitching ourselves to the Leofinance team, we were betting they would keep expanding the system. Over the past couple years, this is exactly what took place. For many, all the different directions appeared to be staling the progress. The reality is the lack of developers is what caused the problem.
At the present moment, we see the applications starting to expand. Most importantly, we are getting some insight into how they all can tie in together. This will cause the growth to leverage itself as each applications can have input. Here is where we could see things really start to take off.
That means development needs to continue. The latest AMA mentioned the need to hire two more developers. This is after another one was added to the mix recently.
It is evident the goal of all this is to keep producing more opportunities for people. This suits LBI in an ideal way. We are always looking for ways to do things which will enhance return.
This is a long-term focus. We know that yield + time = big money. With different options, we can hunt for yield. Some things might provide a bit of return; others will knock it out of the park.
What is powerful is that we have baseline activity which we undertake each week. This article will add a bit of LEO to the holdings, as well as feeding the dividend pool. All of this helps LBI holders to enjoy more returns.
The move to bet on Leofinance was a good one.
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