I've added a new branch to the LBI fund, with the opening of the @lbi-sim wallet. This joins our other sub-wallets that are set up to hold specific assets, like @lbi-dab, @lbi-eds, and @lbi-pwr. So what is the LBI-SIM wallet for? Well, rather unsurprisingly, it will hold an investment in SIM, the main token of the Dcity game.
I know that there is already some people reading this thinking that dCITY is dead, no one plays it anymore. That is definitely incorrect. While the player base may not be what it once was, there is still significant activity going on with dCITY, and the game continues to be developed, with changes and a new card editions coming soon. @gerber is the brains behind it, and he continues to work on it and with a dev keep it progressing.
Having said all that, it is not my intention to actively play the game, and build a city up. I don't really have the time to re-learn how it all works, learn strategies to optimize a city and maximize returns that way.
The liquidity pool.
For the purposes of our investment in SIM, I have added funds to the SIM/SWAP.HIVE liquidity pool. This is a quite deep, long running pool that has been consistently funded with LP rewards. The yield on this pool currently is around 17% APR, paid daily in the form of SIM rewards. I seeded this new wallet and investment with 1000 HIVE, which came from the HBD withdrawal from savings I did last week. Half was traded from HIVE to SIM, and the LP position was created.
When the SIM rewards come in each day, I swap half to Hive and compound them into the growing the pool position. This will be another slow and steady growth asset for us, for the long term. While the underlying game remains in development with an active player base and community, the SIM token will retain value. There are mechanics in play that balance the SIM token price, and the LP has been solid for a while.
HIVE income.
There is a second way that funds invested in SIM are rewarded. This set up was actually the inspiration for the way LBI pays its dividends now, including tokens in the LP in the calculation for dividends, so that they in effect carry a double reward. In the case of SIM, it is done through a mechanic called "SIM POWER". Simply, Sim power is a 30 day rolling average of your SIM holding. Included in that holding is liquid SIM in your wallet, and SIM held in the LP. The yield on SIM power varies, but is currently around 30% APR. This yield is paid daily in the form of liquid HIVE.
The SIM power yield makes holding SIM a quite attractive proposition. Holding in the LP means 2 rewards are earned - 17% (currently) on the full pool balance, plus 30% (again currently) on the SIM portion. This makes an effective yield on the position of over 30% APR, one of the most attractive yields available from a well established, long running Hive project.
For our purposes, the SIM reward earned from the pool will be fully compounded. The HIVE reward will go to the weekly income distribution wallet, to contribute to dividends, pool rewards and the weekly buy back and burn.
So there you have it, another branch of LBI has been established, @lbi-sim. In time I will try to trickle extra funds into the wallet where I can, and slowly build it up through compounding to be a significant contributor to our fund.
Let me know what you think, all comments are appreciated.
Cheers,
JK.
To learn more about LBI, here are some more recent posts from us.
@lbi-token/lbi-weekly-holdings-and-income-report-week-8-week-ending-22-sep-2024-5ie
@lbi-token/major-change-for-our-eds-wallet-9ba
@lbi-token/the-lp-is-growing-cx2