Earn over 16% APY on your Hive Power delegations
Hello everyone!
Maybe you know or maybe you don't but since a couple of months I have become an active member of the Inleo / Leodex community. To be more specific, I joined aka started to buy $LEO once LEO 2.0 was announced. Since that moment I started to accumulate more and more $LEO. I ended up buying a total of 48K $LEO. I had a target of 100K $LEO by years end but I won't be able to achieve that one as I am to busy to earn more liquid tokens to buy LEO on the one hand and the price of LEO has exploded on the other hand. The latter definitely was expected although I hoped it would have been slower...
No regrets though, I still managed to grab a decent chunk of the total LEO available (30M tokens). Anyway, today I want to dive in a particular aspect of the Inleo community: delegations of Hive Power.
Delegating Hive Power to INLEO
In the beginning of August, @leofinance (the official account of Inleo) made a post stating that people could start to earn $LEO for delegating their Hive Power to their account. This was already possible in the past but the backend often suffered from downtime and thus people were losing out on their potential APY. The Inleo team solved the issues and made clear this time the delegation rewards wouldn't skip a single day. Maybe too soon if it's true or not but since the announcement I haven't had a single missed day thus so far I believe them and I am convinced they will keep their promise.
If you have read the original article, you'll have seen that they wrote that the APY is 16%. The rewards are sent in liquid $LEO tokens and are calculated every day based on the price of that day of LEO and than calculated for a APY of 16%. Maybe you're better in math than I but that means that the APY could fluctuate. Yes, as the price of $LEO could go up or down, the actual APY could be higher or lower than the said 16%. Let me explain it with an example:
Example part 1
Let's say on day 1, I delegate 1000HP to @leo.voter and LEO is worth $0,10 thus that means I would receive $(0,16*1000)/365 worth of LEO which would be 0,44 LEO tokens worth $0,044. If the price of LEO wouldn't move, I would get every day that amount of tokens and at the end of the year, I would have an APY of 16% paid out in LEO tokens daily.
Example part 2
Let's say on day 1, I delegate 1000HP to @leo.voter and LEO is worth $0,10 thus that means I would receive $(0,16*1000)/365 worth of LEO which would be 0,44 LEO tokens. If the price of LEO doubles, these tokens would be worth $0.088. That means my APY which is calculated on a yearly base will be higher as for that particular day, I received more in terms of $$$.
$LEO is climbing
Since the above mentioned announcement of LEO 2.0, the price of $LEO started to climb. It's my personal belief that the price will continue to climb. Probably not as steep as it's going now for ever but the flywheel will continue as there are multiple sources scooping up LEO and locking the token for their future USDC rewards which will start on September the 23th.
Conclusion
If you believe in the $LEO token and want to earn the biggest APY possible in the Hive ecosystem, than you should definitely consider to delegate your Hive Power to leo.voter. Ofcourse everyone has to make his own decisions but personally, I am delegating most of my Hive Power as I want to accumulate as much LEO as possible at this moment in time...
Posted Using INLEO