Since the project started, I have been focusing solely and exclusively on the stability of the PWR-HIVE pool in Hive Engine.
And this initial plan has worked great so far.
Let me comment that from the beginning, I haven't sold a single PWR token and all I have done is to match every single PWR I could get on my hands with HIVE into the pool.
In addition to this I have made periodic purchases of several thousand HIVE, leaving the price always around +0.9 HIVE/PWR, which at 16% APR It's a very decent return for your HIVE delegation.
My studies lately take up a lot of my time and the little time I have left is not enough to keep up with everything that's happening in HIVE, let alone to keep up with all the trends happening in the crypto sector (something that was impossible before, by the way).
Reasons why I have kept some of these stabilisation tasks on autopilot, I must say. And with it some mismatches that I don't quite like.
With PWR at 0,9/HIVE and my current stake into the pool:
- I'm controlling 57% of the pool.
- APR from adding liquidity currently is ~7%
Although these numbers are somewhat expected and 'not bad' by themselves (in fact I think the current situation it's a good problem to have with a crypto project) I believe some refactoring is needed from my side.
A New Approach:
For the couple reasons above I did the following:
- I pulled 100% of my liquidity out from the pool.
Which instantly brought the following:
- Now APR from pooling is back up to ~17,7%
- Top liquidity account (excluding initial liquidity) now controls 12,4% (up from 6,6%).
- Overall liquidity reduced from 35K HIVE down to 15K HIVE.
This obviously changes the dynamics somewhat in the short term. We are nearing the end of the third month of operation. Hit & Run players had their time to make their cash (which is indeed a great thing) while others are gradually building up their position (as I am).
Incentive to hold PWR into the pool is now reincentivised, while constant sellers will get punished over time.
Now @vventures is getting +500 HIVE /week (and increasing...), which I won't hesitate to use if the price goes low enough. It has always been the point, I should say. I'm 100% into the project building it's own liquidity.
'Low Enough..?'
Which indeed brings another question; ¿How low is 'low enough'?
I wonder at what point other market participants would step in to support the price?
This, however, is a question I don't know if I want to answer because the last thing I want for PWR is to remotely give (any) sense of abandonment.
Whatever...!
I'll just sit there and watch what happens.
Long-term the goal has been always the same. Keep accumulating Hive, keep the ratio healthy and if everything goes as it should, start paying Hive dividends shortly after the beginning of the second year of operation.
Thanks for your attention and have a good week.
