Over the last 6 months (almost) the LBI token and project has repositioned itself as a basket fund of a number of HIVE based projects. One of these projects we have invested in is the DAB eco-system - a collaboration between @raymondspeaks from the BRO project and @silverstackeruk from @spinvest (among other projects). Our DAB position is designed to grow in assets, which will lead to a steadily growing income over time. We added funds into a new wallet - @lbi-dab. Let's check in with this position and see how it is going.
How it started:
@lbi-token/why-did-lbi-buy-so-much-rug-7fu
Buying a big chunk of RUG token was one of the first moves I made after taking over LBI. The above article was in fact the second post I made after taking over the LBI projects administration. (the first being the announcement post).
Here was our plan at the time:
In the first weekly update post, here is what the wallet looked like:
So, lets look at where we are now, 23 weeks later, and see how we are going.
How it's going.
As of today, here is our DAB wallet position:
So, a surface level look at these results, and it looks like RUG may have been a bad move. The HIVE value of the RUG position has dropped from 10600 down to 3750 - a significant drop. I have skimmed back through the explorer to check exactly how many DBONDS have been minted from our RUG position, and it is exactly 2210.413 DBOND. So, aside from DBOND minted, we have net bought another 1190.309 DBONDS directly.
All up, we have probably put close to 12,000 HIVE into this wallet, from the initial 10,000, a n extra buy of a few more RUG to round us off to 5,000, and a big buy of DBOND fairly early on to speed up our DAB mintage. The wallet is currently worth 7,351 HIVE, so on the face of it, it doesn't look good. But it is more complicated, and our performance is not that bad in reality.
RUG should be considered a USD valued investment, not HIVE. True, it was bought with HIVE, but it is an investment in off-chain, USD valued assets. In terms of our RUG USD value, it is almost unchanged over the 23 weeks. Recently, there has been a lack of weekly updates from the RUG project, but we can tell from the market that RUG tokens are currently worth around 0.75 HIVE each. The basics of all this is that HIVE has outperformed the off chain investments RUG holds. However, in USD terms, RUG is around where it was at the beginning, so it's ok.
The long term plans.
Push on.
The position we are building will grow over time. Each week we mint more DBOND - which is pegged to 1 HIVE each. It would be easy to say that we were earning 100 or more DBOND each week from RUG, and now it is around 30 so that's crap. But it isn't, as the income SSUK generates with RUG is now having to pay a much higher HIVE price to bring it back to HIVE, thus it gets less units. In dollar terms, RUG is still yielding very well. Over 40% APR by my math. These DBONDS then mint us more DAB, which increases our daily income.
Here is the last 18 days of HIVE income generated by the DAB wallet:
As you can see, it is steadily growing, every day. So the plan for this wallet is real simple from now on.
- Hold our RUG.
- Hold our DBOND. (no more selling to supplement weekly income)
- Hold our DAB.
- Watch our income grow.
- Keep an eye out for new initiatives from the @dailydab project.
Conclusion.
Overall, while it may seem that RUG was not a great investment, I would argue that it may have been poorly timed, but it will work really well for us in the long run. The fact that HIVE has outperformed recently the tokens RUG has invested in is generally a positive for our fund. It may have hurt this particular wallets HIVE value, but the position will mint us an income that grows daily.
If we look 12 months down the track, what will our daily DAB drip be? Of course it is hard to predict, but given that it has grown from 0.349 HIVE per day to 0.410 over the last 18 days, we can extend that out and estimate. By my calculations, we will be making at least 1.65 HIVE per day from DAB drips a year from now. Don't hold me to that guesstimate.
This is a position that will look much better down the track.
I hope you found this post informative, check the @dailydab account to learn more about the DAB project. Hopefully we will see a RUG specific update from SSUK soon.
Thanks for reading,
Cheers,
JK.