A few days ago I posted about a Powerdown and Budget Update for Precious and since then I’ve been having a think about viable (and safe) alternatives to HBD Savings for SGS to park it’s extra funds over the next 2-3 months. HBD does earn 15% APR, it is fairly safe and funds can return to liquid form in just 3 days. However I’m concerned that a rally in the Hive price as a result of Bitcoins recent Breakout might effectively cut into the time those funds should last…
Source
So today the remaining HBD in Savings returned to liquid form and I’ve moved most of it into a Liquidity Pool. The one I’ve selected is the SWAP.HIVE : SPS pool which you can find easily on Tribal Dex This involved trading the HBD back into HIVE (at about 19 cents), then converting to SWAP.HIVE and swapping half of it into SPS before lodging it with the Liquidity Pool. According to Splinterlands Dashboard today this Liquidity Pool earns about 19.82% APR and I’ve already tested that the funds can be pulled out instantaneously to continue funding our Community Curation Project Leases each week.
There are some small (but I believe acceptable) risks with this move that are worth being aware of. The first is that there are some Counterparties involved – Specifically Hive-Engine and Splinterlands. The Splinterlands DAO directly rewards contributors to this liquidity pool which I believe is in addition to getting a share of regular Trading Fees. I suspect that is why the APR is a little higher. Also it means the funds have an exposure to SPS fluctuations. SPS has been in a gradual Bull Market against HIVE for the last 3 months so I think a big drop in SPS in coming months is less of a risk, but still a risk none-the-less.
Obviously I’ll keep a close eye on these funds and make sure they are performing as expected. If this turns out to be a good option then that means we’ll be able to give our Lessors the option to receive Weekly Delegation Payments in the form of SWAP.HIVE instead of HIVE – if they so choose. I’ll make a separate post about that later if the liquidity pool I’ve chosen turns out to be a satisfactory option going forward.