When I relaunched LBI in its new form, one of the first steps was to establish a new wallet - called @lbi-dab seeded with 10,000 HIVE from the proceeds of selling the funds BTC and ETH. Along with the @lbi-eds wallet, these two new holdings wallets were established, with the aim of building a growing asset base that would start to generate a steadily growing income for the fund.
We are now a few weeks in, so let's check in and see how our DAB wallet is going.
The RUG position.
We initially bought 4800 RUG, at a little over 2 HIVE each. Then a short time later, I added 200 more, to round us off at an even 5000 - to satisfy my irrational unit bias requirement. For a period, this put us as the single biggest RUG holder, a position we have recently been overtaken on by @siddhartaz. The value of this position is volatile, as funds get invested off chain, into DeFi by @silverstackeruk as manager of the RUG token. Each week, a report is produced and the RUG value gets updated. At the moment, RUG's HIVE price is down a little, currently valued at 1.91. This will fluctuate, but each week, I update our value based on the RUG weekly report.
You can see the latest RUG token update in this post:
@dailydab/rug-report-0009-or-the-only-project-buying-hive-from-the-open-market
Since we bought in to RUG, we have earned 517.76 DBOND from the position. I did buy a few DBOND with some spare HIVE that remained in the wallet, giving us a current total of 579.696.
That is 517 HIVE value (DBONDS are pegged at 1 HIVE each) added to our fund, over the first month of the position. You can see the yield as a percentage in this table, sourced from the above linked post. I have just looked at the weeks since we bought in.
So, the yield ranges from 49% to a high of 122%. Pretty good I think.
Dab mintage.
The second part to this wallet is the DAB position. This has been much slower to get going. While we have build over 500 DBOND's in just a few weeks, we are still only holding a very small portion of the over DBOND in circulation. We have not minted much DAB yet from these DBONDS. Currently we have just 3.232 DAB, which is minting us just 0.007 HIVE per day currently. To speed up how much DAB we mint, we need to increase our share of the DBOND circulation. This will happen over time, as our DBOND grows. Currently we hold 0.462% of the DBOND supply. As this percentage grows, we will mint more DAB more regularly.
So, it will take a while for this wallet to meaningfully add to the weekly income. At least with the current set-up.
I can't resist the temptation.
A post I put out recently looked at all the ways I could make short term changes to boost the income this funds generates. You can see the full post here:
@lbi-token/the-hardest-part-now-is-jf1
Anyway, one of the options I floated was to sell of some of the DBOND we earn each week. Now I want to announce that I am caving in to temptation, and will sell a small portion of our DBOND. As you can see from the above, we are making close to 100 DBOND each week. So I am going to unstake just 2 DBONDS each day, and sell them. 14 DBONDs per week, getting sold to add to income. This is a short term decision, but it won't have a huge impact in the long run. Once the rate of DAB mintage picks up, and the daily drip from holding DAB grows, we can revisit this policy.
2 DBOND each day adds around 11.9 LEO each day to the income wallet. An extra 83 LEO each week going towards the income split, meaning slightly higher dividends, a bit more to lp rewards and a bit more to the buy back and burn. Overall, this will be a very insignificant impact on our long term growth, but a nice little income boost in the short term.
I couldn't resist the temptation any more.
Anyway, that's a little insight into our DAB wallet investments, and an announcement of a small change in policy to boost weekly income a bit, without making a major impact on our long term growth prospects. Hope you found the post usefull.
Thanks for reading,
JK.
@jk6276
If you want to learn more about LBI, check these other recent posts out:
@lbi-token/never-enough-hive-power-lpv
@lbi-token/leolbi-liquidity-pool-dm
@lbi-token/lbi-weekly-holdings-and-income-report-week-3-19-aug-2024-7vv