... but probably not sustainable. I keep track of the current ROI, but if we want to have fun we can annualize it and see some impressive numbers.
I said enough times that on Hive my main focus for the long term is growing my HIVE Power, even if it doesn't grow significantly in the short to medium term.
I also mentioned at the beginning of the year that my Hive goals this year are more complex than what I publish every week.
Because we talked about diesel pools a few days ago, I wanted to show you what has recently been possible on Hive using them.
I won't give you any advice as to what to choose to invest in, because some options are there for the short term, for others, conditions change rapidly so you have to pay attention, and others have low liquidity and are limited in what you can do with them and who can participate (with what amounts). What I can tell from everything I've done in the past month is that they all required active management (daily) to reach these results. Passive management is not an option for diesel pools, in 95% of cases! You can manage them weekly instead of daily (I do that in some cases on other accounts), but leaving them unattended for months or years is a bad idea, generally. As is with any liquidity pool, on any platform and ecosystem.
Since the beginning of the year, one direction I pursued was to have an account where I invested in diesel pools, starting from HIVE as the initial and regularly added investment, with the goal of liquidating the investments at certain predetermined conditions and with at least a certain profit (in HIVE).
In many ways, the strategy I apply on this account is almost opposite to (certainly different from) what I do on other accounts, from picking pairs to how I handle rewards to my time frame and reason for becoming a liquidity provider. Everything has a short-medium time frame, is profit-oriented and the end goal is HIVE.
I invested a bigger amount at first, and then gradually, every week.
These are the results, as of yesterday:
243 is not a big amount of HIVE (SWAP.HIVE) invested, and probably bigger accounts would have issues finding enough liquidity to place their funds and get a higher return, so these results are highly dependent on how much funds you want to invest, at what risks and how involved will you be in managing the investment.
From 246.32 SWAP.HIVE invested, the current valuation yesterday was 343.16 SWAP.HIVE, so if I were to liquidate everything, I'd have a 39.31% ROI (a little less if we account for fees and price impact).
That's a great ROI for less than a month (even less for the weekly investments), and if we annualize it, we get close to 500%. But, as I said, that's more of a funny exercise, because I don't expect the same rhythm to hold. Plus, as time goes by and the seed funds grow, I will find it more difficult to discover the right options to place them at acceptable risks, and they won't have as much time to generate profit.
This is just one way of using diesel pools and what is possible with them. Otherwise, I prefer the longer-term frame, for diesel pools/tokens of projects I believe have a... long-term plan. But even for them, (semi-)active management is required.