What a month! 2021 is already shaping up to be our best, busiest and most formative year for LeoFinance. You may have seen in Discord chat the other day that there are more than 7 projects being developed simultaneously right now. All of these projects are under the LeoFinance umbrella and have several devs/team members working on them at this very moment.
The rise of LeoFinance has allowed for some major expansions to happen. We'll save these announcements of announcements for future posts, today is about Geyser yield.
The Geyser has erupted for the second time. What's a Geyser?
The WLEO Geyser is a liquidity provider incentive model that distributes monthly rewards to LPs on the WLEO-ETH Uniswap pool. I've written about Liquidity Black Hole Theory in the past and I recommend giving that a read if you want to know more about why this model was chosen.
In short, the Geyser is simply a distribution model that provides a third pool of incentives to the LeoFinance and LEO/WLEO token economy:
- Proof of Brain (Blogging / Curating)
- Proof of Stake (Mining - LEOM/LEOMM)
- Proof of Liquidity (WLEO Geyser)
In Last Month's Geyser Report, the WLEO-ETH liquidity pool had just crossed $500k USD in total liquidity for the first time ever.
Yesterday, the WLEO-ETH pool crossed $1.25 Million (yes, million) in total liquidity for the first time ever.
Not bad. How's the token price doing?
HODLing strong at the $0.50 level, despite the major dip in crypto this morning. We saw a new ATH reached yesterday when we hit $0.57 for the first time ever. This is one of the many benefits of having WLEO. We're pegged to the broader altcoin market (through our ETH base pairing) and this allows us to essentially have a baseline price that trends with ETH.
Where we can break away from this pairing (hopefully, to the upside) is by providing incentives to HODL LEO/WLEO. Creating better apps, better products, more use cases, etc.
LP Yields and Profitability
Note: there are a few blanks in the sheet next to certain LPs. These are LPs who removed liquidity throughout the 30 days, so their values (outside of prorated yield) aren't displayed here
Yields are up!
Last month, Liquidity Providers received about $6,000 in Geyser rewards.
This month, Liquidity Providers received about $12,100 in Geyser rewards.
It's the same amount of LEO (as the pool is a fixed % of incoming LEO), but the USD value of those rewards have more than doubled month-to-month. Similar to Author Rewards, Curation Rewards and Mining Rewards, a rising LEO token price is healthy for our economy and only deepens the incentives to be an active and engaged participant.
Despite more liquidity entering the pool this month, the WLEO geyser yields are up for LPs who have been in the pool since day 1. If you recall how the Geyser model works (check our previous posts on it from this account), then you'll know that the Geyser gives heavier weighting to older liquidity.
The longer you've been an LP, the higher your weight in the WLEO Geyser pool. Pool early, pool often is the phrase to live by.
Someone mentioned that it would make more sense to calculate yield based on the original value of LP positions (i.e. take the value of yield paid out today against the value of the pooled $$ at the time the position was created).
It's hard to say which one makes more sense. It's really just a matter of perspective, but it is fun to look at the updated numbers when you take the original pool value as the base for calculating APY % (what many other DeFi projects are doing, apparently):
I took @nealmcspadden as our guinea pig for this calculation. He provided liquidity on Day 1. On that day, his total liquidity was worth ~$18,000 USD.
His yield payout today (for the past 30 days of Geyser payouts) is 1253.326 LEO. At present value, this is worth ~$626.66 USD.
The above screenshot accounts this $626.66 USD payout as 19.18% yield because it's using the base value as Neal's current position value (actually the position value on the 30th snapshot).
If you take this yield payout against the original $18,000 investment, then the annualized Geyser yield comes out to 41.77%.
Either way, yields look great and is right where we want it to be: 20% or higher.
LeoFi UI
The LeoFi UI project (one of the aforementioned 7 currently under development) is coming along. I'm excited to unveil this project to the community as it adds new dynamics to the LeoFinance ecosystem and LEO/WLEO token economy.
LeoFi V1 will launch with a very specific (and new) P2P use case for LEO POWER. As the project is developed in subsequent versions, it will have new use cases and also service existing ones (i.e. a Geyser UI to interact with your pool position and see real-time and projected yield).
Our foray into the world of DeFi is just getting started. It's amazing that we already have a $1M + Liquidity Pool on Uniswap, but this is truly just scratching the surface of what is possible in DeFi.
Later this year, we're launching a whole suite of LeoFi-based products. Collateralized lending, a new DAO token, staking vaults, synthetic assets and more. LeoFinance's DeFi umbrella is just taking baby steps right now and by the end of 2021, we'll be taking massive strides.
Other Announcements
As always, a lot of announcements and releases are pending. Last week, we ran a live test of the new Lightning DB project. Many of you participated and submitted your bug reports (over 50 were received in just a few hours time). Lightning has taken more than a month longer than we anticipated, but it is coming along and I still have my fingers crossed that we'll launch it into production this week.
After Lightning V1 is launched, it's full force into the official launch of Project ___ (playfully being tagged and talked about as #ProjectBlank on Hive and Twitter). This is our new Microblogging application which started out as a feature-addition to the LeoFinance.io UI and turned into a fork of LeoFinance.io.
This project will now have its own UI, token(s) and economy. As a sister project, it will also have core ties into various aspects of LeoFinance including cross-platform interactions. More info on this will go live when #ProjectBlank does, but the process of building this new project has opened our eyes to the future of LeoFinance as what could amount to a sort of "holding company" for various applications both on and off of the Hive blockchain. As we roll out ProjectBlank and other DeFi/Crypto applications currently under development, this vision will become crystal clear.
Holding LEO as LEO POWER (or WLEO in the Liquidity Pool) not only gives you influence and "power" in the LeoFinance platform, it also means access, eligibility and other means in every subsequent platform, application and utility that is launched underneath the LeoFinance umbrella. I find this to be a fascinating concept. It's like owning Alphabet and thus, all of the products built out by Google and related ventures.
Our standalone second layer is also coming along nicely. We'll announce announcements about this later on as it gets closer to public testnet, our design is more finalized and governance is built out.
A whitepaper is going to be dropped soon which will explain the entire LeoFinance project, our history, our vision and our roadmap for 2021 and beyond.
LeoFinance is a blockchain-based social media platform for Crypto & Finance content creators. Our tokenized app allows users and creators to engage and share content on the blockchain while earning cryptocurrency rewards.
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