A new project has appeared on the radar, being launched by @empoderat . HIVE Power Ventures is launching very soon. It is a delegate Hive Power, to earn a reward token setup, but built in a sustainable fashion with a long term vision. In the vein of other projects like @eddie-earner and the more recent @dailydab projects, but with a focus on HP delegations instead of token sales.
Source: Pixabay
How it works:
There are a few posts to review to get your head around how $PWR will work:
The initial announcement post - Introducing Hive Power Ventures ($PWR)
The first update post - Estimated launch date for $PWR farming
Ready to go - $PWR: Everything is ready
There was also a post put out by @spinvet reviewing the project and discussing how it works. This is an interesting perspective, as @spinvest has been running investment projects on HIVE for years, and @silverstackeruk manages the $EDS project, along with $SPI and as co-founder of $DABS (and other things also)
- @spinvest post about $PWR - Exploring Hive Power Ventures
Anyway, those are all the links you need to get up to speed with how this project will work.
Here is a quick ELI5
Step 1: Delegate Hive Power to @empo.voter
Step 2: Receive $PWR tokens on Hive Engine.
Step 3: you have 3 choices now:
- Sell $PWR to realize daily return
- Add $PWR to the $PWR/HIVE liquidity pool
- Hold $PWR liquid.
Lets look at those 3 options a bit more.
Sell $PWR income daily
The $PWR token is "soft-pegged" to be worth 1 HIVE each. So, a potential plan is to sell the earned tokens as they come in, through the liquidity pool where the value should hold reasonably close to 1 HIVE. This may be an attractive early option, as the launch APR is quite high (20% initially). As the APR drops off over time, this choice will become less attractive, and some early Yield farmers will likely move on.
Likely a good short term plan, but if you are thinking long term this is not the way to go - unless you plan to sell early yield to hive, then power that income up to increase the delegation to earn more $PWR long term.
Add $PWR earned to the LP
This is the intended use for $PWR tokens earned, and will aid the long term stability and growth of the project. The LP is set to generate a sustainable yield of around 5%, ensuring there is not a significant drain from farmers.
This is the go, from a long term perspective
Hold $PWR liquid.
Not the worst option, especially if you like to set and forget. Drop a delegation, and just leave the $PWR to accumulate. Down the track, $PWR will likely start paying some yield to its holders, from curation income. This is not planned to happen soon, but likely in year 2 of the project. This is the easiest option, but leaves a little on the table but missing out on the LP APR.
I'm in, here is my plan:
Personally, I am looking to use option 2 from the above. Delegate some HP (I have done 1000 to begin with, looking to increase as I rebuild my HP), match the $PWR earned with $HIVE I will scrounge from wherever I can, and build the LP position. I imagine that in the future phase where PWR earns some HIVE income, that tokens in the LP will earn the same as liquid held tokens (but that is not clear yet).
I have no plans to buy PWR, but also no plans to sell it, just farm with HP and match HIVE to it in the pool.
When the test run happened, I was lucky to receive my first $PWR tokens, and started to implement the plan. Put the first 0.15 PWR in the LP with matching Hive. Just for posterity, here is the richlist for the pool:
Yup, that is me, second on the LP richlist. Thought I'd screenshot it for posterity, as I don't think I will be there in P.2 for long.
Are you getting involved with Hive Power Ventures?
Want to have anything claified?
Let me know in the comments.
Cheers,
JK.
P.S. Not financial advice and all that usual disclaimer stuff. Make your own choices.