August has come to an end, and one thing I plan on doing is monthly recap posts. These will be a good way to track our progress over a longer time frame then just day to day or week to week, and will hopefully highlight the continued growth and progress the LBI project is making.
It was actually 31 July, at 10 pm when I posted the announcement post That LBI was now under new management. So it's been a month already. Lets look back on what we have gotten done so far.
New Wallets.
One of the first moves I made after taking over LBI was to sell our BTC and ETH, and bring it back on chain to HIVE. This gave me a good amount of funds to start transforming LBI. Two new wallets were set up, and seeded with 10,000 HIVE each. @lbi-dab and @lbi-eds were established.
The EDS wallet powered up half the HIVE, to delegate to @eds-vote, and the other half was traded to HBD and then to EDSD. These give us two decent sized ways to mint EDS tokens. You can read all about the establishment of the EDS wallet here.
The DAB wallet put all the HIVE into RUG. This has been minting us DBOND ever since, each week, at around 50% APR. The point of this wallet is that we get 2 layers of asset growth prior to any income coming out. The initial thoughts were outlined in this post and then I provided an update post with a small change of plans in it. I am taking a little of the weekly DBOND drop and selling it to add to the income wallet, in these early days until we have lots of DAB and the income has grown.
A little later in the month, I set up another wallet, for PWR, creatively called @lbi-pwr. It has not been seeded with any funds directly, but it's growth will start from a delegation to @empo.voter. Here is the post where I talk about setting this up, and the plans for it.
The other wallets I have set up are administrative, just for funds management basically. @lbi-income hold all the weekly income funds till its time to send them out at the end of the week. @lbi-pool is the wallet that looks after everything related to the liquidity pool (more on that in a minute). @lbi-bbb is simply the account used to buy back and burn a few LBI each week.
Burn's
When I took over running LBI, a decision needed to be made regarding almost 40,000 LBI tokens that the fund held from buy backs previously. After some discussion in the first week we ended up burning them all. This prevented any form of dilution of existing holders with these tokens re-entering circulation one way or another. There was also another big burn done, of another 40,000 LBI. This was done by @spinvest by our request. These tokens were still available to be minted, which would have caused a dilution.
LBI is now completely hard capped, there can be no more tokens created or added to the circulating supply. Each week we buy back and burn a few tokens, from a small share of the weekly income.
You can read all about the LBI token burns in this post
Liquidity
A big goal of mine when I took over LBI was to improve the liquidity of the token. I wanted a liquidity pool, with LBI paired with LEO, and rewards funded from a share of the income. This post 19 days ago announced the launch of the pool. A week later, I posted again reviewing the first week and how the pool had started to grow.
Part of the plan was that LBI tokens that people add to the pool would still count towards their weekly dividends, and that has been successfully achieved. Currently the pool has over 5800 LBI tokens in it, paired with 21000 LEO. I have already seen bots arbitraging between the LP and the order book, which is pretty cool. This generates fees for the liquidity providers, and keeps prices close between the two markets. As prices fluctuate, there will likely always be this kind of action happening, as the pool is paired with LEO and the market is HIVE based.
The yield on the pool is still small, but over time it should grow. From tonight, I'll be adding in some BBHO, the new outpost token from @bradleyarrow's BBH project. Still thinking over other ways to boost the yield on the pool and make it more attractive for LBI holders to add their tokens in.
Dividends
In the last week, we have successfully restarted dividend payouts for LBI holders. A key part of the plan was that LBI in the pool would be included in the dividends, and this has been achieved.
I was pretty excited to get this all set up, and posted about it here
Tonight, I'll run the first regular weekly dividend run, so that will give the best indication of where we are starting from. The payout earlier in the week was from two weeks of income, minus funds for testing. Yield is not huge, at this stage, but my goal is for it to improve every week. Time will tell if that is achievable, but all the pieces are in place for that to happen, provided I maintain the output of content.
I just want to shout out @balaz here. He was great to work with getting the dividend bot set up and tweaked to our needs. I'd highly recommend him if you need coding work done.
Well, the first month was always going to be a busy one. But overall, I'm pretty pleased with the progress we made, and the transformation of LBI is well under way.
Looking ahead, the goals for September are to consolidate on what has been done, start to just let the plans do their thing. I'd like to explore ways to boost the yield on the pool. I'd like to boost our HP to increase delegations to the PWR project and to Brofi. I'm working on getting us some EDS miners to mint us more EDS. Other than that, lets just wait and see.
That's about it for this first monthly recap. Let me know what you think of our progress so far, and things you may like to see happen in September. Thank you for all the support on our content, it is very much appreciated.
Cheers for now,
JK
@jk6276