We all know that rewards depend on hive price. If hive price goes up then post payout rewards also go up and when its price comes down then rewards also become less.
Now the question comes that is HP lease APR also dependent on its price? If we think that hive price will go up in the next few months then will it be beneficial to take a lease?
In todays post we will discuss this and understand how HP lease APR is affected by price, what are the benefits and losses? We are living in the hive ecosystem and consider this work as our career then it is very important that we understand its things, we should understand all its features so that we can take full benefit from it.
For example, what HP lease is for and what is benefit and loss of taking it?
if you want to take HP lease, you can find it on hive engine. This is a lease system where you can take hive on lease for an agreed period of time.
This is an agreement which is done on #Hive-Engine and after this you get the lease which increases your influence in the ecosystem. More power for curating and rewarding the quality contents.
I will not talk about the method of taking HP lease because I have already made a detailed post about it which you can see in my blogs. My focus today is on this that if hive price goes up or down then what are the benefits and losses of the lease.
You must have noticed that an APR is offered to take lease and if the APR makes sense to the one giving the lease then he agrees otherwise he does not give his HP on lease.
Most of the time this APR stays the same but sometimes it changes which depends on hive price and market conditions. At the current hive price a 9% APR lease is running which means the highest APR right now is 9%.
Now, lets calculate if taking lease at 9% will give benefit or not its calculation is very easy. If you do proper curation then you get 8% APR but if you take lease at 9% then in that case you will get 1% loss,
this means instead of profit loss is possible,
But some big investors do not look at this small loss instead they give importance to their account growth. Remember the more HP you have the more your influence will increase. By upvoting contents, interest will move towards you and your posts will start getting upvotes which becomes extra income for you.
Other than this, if you keep curating continuously then your reputation will also increase. You will be considered an influential user in the ecosystem and people interest will increase towards you.
Some investors take lease for long term plan. For example right now hive price is 0.115$ which is its lowest value considered. if its price increases after a few months then the lease you have taken will give you benefit. What type of benefit?
As hive price increases your upvote value also increases and you will get more curation reward. It means if you took 9% APR lease then at that time you might get 13% return. That means when hive price is low then taking lease at that time gives more benefit.
This is because if hive price rises then in that case you will get more return
but on the other side if hive price goes down then in that case loss is possible because your curation reward will decrease and you will get lower APR.
I hope you understood well about lease profit and loss.
Do you agree with me that lease profit and loss depends on hive price?
will be glad to see your answers in the comment section
I hope you find this post useful and informative. If you do, please remember to reblog it so that it reaches as many people as possible and that they can benefit the most from it. Also, remember to upvote, which will help me financially and grow my account.
IMAGE TAKEN FROM CANVA Hive-Engine
Thank You!
Best Wishes.