Hello LBIer's. I have done a naughty and did something I said I would not do but this was before things changed when the Leo Team introduced defi to their growing list of projects/dapps. Some of you will have seen Hetty's post on Sunday giving you guys an update that LBI has started a LEO power-down. I thought she was throwing herself under the bus saying she'd write a quick post about that as I thought a few people would not have been happy and let her have it in the comments. baaa-hahaha. To my surprise, it looks like everyone supports the idea so in today's post I'll go a little more into detail as i plan to use some of our LEO to farm on polyCUB and while im breaking my own rules, why not go for 2 and include adding some non-hive income into our weekly report so we can increase weekly dividends.
On Saturday evening just past, I started a power-down for 200k LEO with the plan to collect 50k after 1 week and then cancel the remaining 150k. 50k LEO is enough to diversify and increase our income. Sorry for the clickbiat, not really sorry, not really clickbait, if I were really sorry, I would have done it so sorry again.😙 I hope the LEO>PLEO wrapping service is working this weekend 🤣. I will be putting this 50k LEO into the PLEO/MATIC farm and from the harvests, i will convert some to PLEO, unwrap them and add them to our weekly income. I justify it to myself by thinking that technically we are using LEO even if it is not on HIVE, we are still using LEO and it's LeoBackedInvestments so it's fair game?.
Now i know you dont really care about the sweet words I have to share and you'd prefer to just see some numbers but before I show you, I'll bore you with details and explain the motive behind the idea. On the surface, it looks like we are just trying to increase weekly income and dividends but there are layers to everything. I have been moaning about our low positive cash flow since dividends started, investors more recently have been calling for a buyback offer, I've been trying to grow non-HIVE holding and were always looking for ways to increase income. PolyCUB is the answer, let me explain.
I need to increase non-HIVE holdings as these are mostly always liquid, the more of them we have, the faster we can offer a buyback. I dont think the plan is to power down to offer buybacks, I think we can do better but it takes time and hive-engine is always there to sell if you need to the same way you sell any other HE token. SPI as far as i am aware is the only HE token that offers a buyback and i understand it's on LBI's roadmap but LBI is not as developed as SPI. We currently hold $12k of investment off LEO/HIVE, this is nothing and a few big token holders looking to exit would wipe that all out and we can't let that happen because we've built that $12k up almost from nothing over the past year. We need to increase our LEO cashflow and non HIVE holdings. Increasing dividends is more of a "dont shoot me for powering down LEO" and take the bribe extra LEO each week sorta thing. I'd prefer to harvest the lot and invest it into a kingdom, the fund would grow faster. I dont really care about what we can get from LBI today, i'll care in 5-10 years
Moving some LEO over to polyCUB will increase the amount of money being invested into kingdoms, increase weekly LEO earnings & dividends and give me more liquid LEO cash flow. You might not be aware but around 35% of our income is in the form of HBD/HP and dividends are 50% of income, it does not leave alot of walking around money leaving us vulnerable to missing out on something that is released on short notice. Now for the numbers, this is the fun part, for you, you just scroll down, for me, i gotta go and do the numbers. See ya in 10 minutes.
OK 16 minutes plus 3-8 minute zone out/day dream (wife) later,
We are all aware the APY will drop over time but these are numbers as they stand at the time of writing on Tuesday. Im writing this ahead of time, i forget about that until just now. So, these numbers are 2 days old but they give you a good ballpark. You can see what the expected harvest would be each day and week based on the 2 days old now farm APY. I have removed 50% of the harvest to pay the fine so we can use our polyCUB. We hold XpolyCUB so we're helping ourselves by paying the 50%. The easest way to split the harvests between converting back to LEO and investing into kingdom is to go 50/50. You can see that we will add around 900 LEO per week to our earnings which will be 450 for dividends and 450 liquid for LBI. And to top it all off, we will be adding $185 into a kingdom each week.
Everyone wins, its beautiful. LBI has some positive cashflow, non-HIVE holding will increase twice as fast as they are now which will let us offer a buyback sooner and investors will get a 40-50% better dividend while the good times last.
There you have it, i'll have this all set up on Sunday morning. We can expect to see a drop of 80-90 LEO in curation rewards each week going forward but we'll be bringing back 8-10 times more LEO so makes perfect sense on paper. Plus it means that when the next CUB farm is released to whatever blockchain it's released to, we'll have a decent amount of funds to move over and take advantage of that first hour of crazy mad high APY's with $20-30k of investment.
Thank you for taking the time to check this post and stay up to date with LBI and what we're doing. CUBlife report is tomorrow, dividends have been over 120% and remember they are paid out in LEO so pretty good. You can check out 
