LBI has come into a chunk of LEO - 57000 to be exact. These funds have been issued to us as a final payment from the Cubfinance days, for stuck HBD. While the amount and method of settling this issue could be debated, I'd rather not to be honest. It's time to finally put a line through that era and move on.
Looking forward.
I feel that the best thing we can do is to work out a plan for this 50000 LEO and work on what is next, not what is in the past. That said, just dumping it on the market is not a good idea in my opinion. I did sell a little, and round it down to an even 50K, but pushing down the price of LEO by selling is not in anyone's interests. So let's look at our options:
Hold it liquid. We could just sit on it, in storage (@lbi-storage currently) and wait for a better time to sell. This has merit, as we can set a LEO price where we are happy to retrieve the value we had in bHBD and at least break even. I was valuing the unwrap in our books at $1500. That would mean selling at around $0.03 - not a big stretch from here if LEO's tokenomics changes come into play and the price moves. We could say $0.04, and retrieve $2000 back which is how much HBD we actually had to unwrap when the bHBD situation failed. Or even $0.05 and get $2500 and make a profit. Not the worst option for sure, but we could miss a lot of upside if LEO succeeds with it's changes.
Stake it all. We could simply stake it into the @lbi-leo wallet, and boost our LEO Power by 50K. We are currently over 200K and another 50K could be nice. But is staked LEO on HIVE the best option? There is another option on its way that may be superior to this.
Take it to LEODEX. A new option will be opening up "SOON" 😉 LEODEX is planned to have a LEO (the arb.leo wrapped version) staking option. This staked LEO will earn a share of LEODEX's revenue, paid I believe in USDC. APR's and such are all unknown of course, as it would depend on the success of LEODEX and how much gets staked. But if LEODEX does gain traction and build significant revenue, this could be a wildly successful move. The potential upside is significant, the risk is 50000 LEO.
Take it to LEODEX (version 2). Another option I have been considering is to rebuild an "off-chain wallet" for LBI. Had this thought even before these funds appeared. I'm particularly interested in TCY - as a income producing way to benefit from the success (if it happens) of Thorchain. We could stake some of the LEO on LEODEX, and use the rest to acquire and stake some TCY. This would give us off chain assets again, and exposure to the Thorchain eco-system in a nice easy yield bearing package.
50000 LEO will seem like heaps to some people, and not much to others. The LEO maxi's in LBI's token holder list will want it all in on LEO, most likely staked on LEODEX with calls to buy more. Other LBI holders are still distrustful, and will want nothing to do with the arb.LEO bridge and LEODEX. Like I said at the start, there is no point arguing about the amount we got or the way it came. It is what it is, let's just work out how to make the most of it.
We are a LEO Based Investment, and it does not make sense to sell it off with some serious possible upside on the cards - if everything works as intended.
My personal thoughts are leading towards option 4. Stake 25000 on LEODEX when that becomes available, and buy an equal amount of TCY and stake it. Shift some extra funds each week (40% of our income get's re-invested, it could easily be moved into this new wallet to DCA into these assets). Build a new "off chain asset base, but one that produces income. Yield but with upside potential if these platforms succeed.
Over to you all, let me know what you think we should do.
Cheers,
JK.