Last weeks I've been reserving HIVE a bit more aggresively in order to guarantee a minimum level of dividends on day 1 for PWR holders.
Dividends are a week away (~7 days approx until 11th of September) and will begin rolling in that day or shortly after.
Distribution contract is ready and the last thing remaining is to add PWR & HIVE.
And that's it. This is the confirmation of the 'hard launch date' for dividends.
Good news and 'bad' news.
Regarding the initial APR of the pool, I have a bad thing and a good thing to say.
The 'bad news' is that the Pool liquidity has increased dramatically in the last few weeks. Currently there's 50K HIVE of total liquidity there.
For reference, at the end of July total liquidity was around 30K HIVE (15K HIVE + 15K PWR), so we're talking about almost the double.
This means the initial APR will be a bit smaller than expected.
BUT
Good news is that a deep liquidity pool strengths the peg, allows people in/out more easily and gives a much needed break to the project to keep adding Hive Power looking at long term timeframes.
Something which will be increasingly important as time passes and APR from delegations keep going down (blink blink ).
Confirmed APR: 20%
As told in the announcement post, dividends will be paid 50% in SWAP.HIVE and 50% in PWR to liquidity providers of the HIVE-PWR pool.
I have reserved the non-negligible amount of 5K HIVE and 5K PWR as the initial batch of dividends.
These amounts will be paid daily for the next 365 days after the 11 of September.
Doing quick maths:
10K / 50K = 0,2 * 100 = 20% APR.
So yes, The pool will have a fixed APR of 20% (paid daily in HIVE and PWR) assuming 50K of liquidity permanently pooled over the next year.
Personal Thoughts
Someone would probably expect more, someone less... The truth is that is a fairly competitive APR. If the pool had to remain at the previous liquidity in July, the APR would be around~33%.
I'm not in the position to guarantee the APR will be higher in the near future, so I simply won't. I'll simply launch and refactor from there as I always did.
Sustainability will always be among my highest priorities. I will not pay for anything that could put the project in trouble later.
After dividends will start, priority will shift again into stacking as much HIVE Power as possible for the upcoming year.
Overall I'm very happy with how this project is progressing.
Thanks for reading!
