Hello LBIers, today we take a suggestion from one are investors who asked last week what is the difference in APY between LEO and LBI and if holding LBI would earn more than holding LEO. At first, I thought, what? Of course, LBI produces a better ROI than LEO does but then I thought I can't actually prove that until I post the evidence to the blockchain and maybe other people would like to know the answer to this so let's have a look and see.
We'll start with LEO because it's easier. LEO can be used for a few things, off the top of my head i can think of 2 things that is LEO only and 2 things that require LEO to be paired with another asset. Let's look at LEO on its own first. It's worth noting that to use LEO to produce a return requires you to power it up.
1st and most popular way to use LEO is to curate content on the LeoFinanace frontend. We all know about this, I dont need to explain how it works. LeoFinance has a set curation reward so there is no peak time to upvote like there is with HIVE content. This is a good thing I think as it's not possible to upvote content at 4-5 mins after upvote considering alot of posts take longer than that to read. Another advantage to this is your curation rewards are more stable and predictable, in the world of crazy crypto, this is nice. The ROI for LEO curation range's from 16-19% depending on how many other users are actively curating and sharing the reward pool at any given time. We'll call it 17% which I think is fair but to get that 17%, you need to maintain a 90%+ voting power balance and you will have to use 1000% of upvotes every day so your not wasting any voting power. To earn the max from curating, there are no days off.
The 2nd way to use powered LEO is to head over to LeoFi and provide a LEO lease for another user that is looking to (i guess), increase their curation rewards. This is a semi-passive income because you need to maintain your leases. You'll need to know when leases are ending so you can recycle your LEO into new leases. On a daily basis, your input is not required and the work involved in leasing LEO overall is very slow. The current APY is 12.5% which is lower than curating but the time required to lease is much less than curating. I think 12.5% is very good when you can fill leases for 26 weeks and basically do no work for 6 months.
Next, we look at ways to earn LEO when it's paired with another asset. All of these ways to earn from LEO require it to be liquid and used as part of an LP token. IL will play a huge factor here. As an example, if you had put 1000 LEO into the LEO/BNB LP on Cubfinance when LEO was $1, right now you would have way way more LEO in that LP Token and your harvested CUB, when converted to LEO, would be a small percentage of your LEO gain so it's hard to guess ROI. The best I can do is go off the advertised APY for harvests.
1st way is you can wrap your LEO to BLEO on the BSC and then pair it with the same value of BNB on pancake into an LP token that can be staked on Cubfinance in the farm's section. There are 2 ways to do this. You can convert half your BLEO into BNB are you can match it off with BNB you already have. This will earn an APY of roughly 60% paid in CUB tokens. From my POV, if you converted half your LEO in BNB, your APY is 60% on your LEO but if you matched your LEO with BNB you already hold, your APY is 30% for LEO and 30% for BNB. I'd assume most people will convert half their BLEO into BNB so we'll call it 60%. Im not going to get into BNB fees, you should as it'll most likely surprise you how much you actually pay in fees when compared to your profit.
The 2nd LP token that LEO can be used for is on Beeswap. LEO can be paired off against HIVE to create an LEO/HIVE LP token. When staked on beeswap, this will earn a roughly 20% APY in the form of BXT tokens that are paid out daily. The same as above applies here in regards to how you invest, if you convert half your LEO in HIVE are not. For talk's sake, we'll call it 20%.
There might be other ways to earn from the LEO token but im not aware of them. Of the 4 ways to use LEO from above, the best return is 60% but it's on BSC and not HIVE. The best return for the HIVE blockchain is 20%. There's is nothing wrong with 20%, that is what LBI aims to achieve but just to be nice, we'll factor in weekly compounding. This would be powering up your earned LEO from curation are reinvesting BXT rewards back into the LEO/HIVE LP. This turns 20% into 22%. I guess that is the answer for LEO. You can earn 65% off-chain or 22% on-chain assuming you compounding weekly.
Righto, it's time to look at LBI and see how its dividend APY and token growth compares. As we are only a few weeks into a new year, I am going to base LBI's numbers on year 1's results and im going to say that most people invested in LBI when the price was 1 LEO per LBI token. Based on LBI issuing 233k tokens, we can use 233k LEO as our base number to give us APY's. We earned more in the second half of the year so i'd expect year 2's results to be a little bit better but having full of stats is great to give a good ballpark figure.
LBI earned from curating with its 255k staked LEO = 19.3% ROI
LBI earns from producing daily content = 6.8% from LEO and 5.9% from HIVE
These are our 3 biggest forms of LEO income for LBI. We have a few other small things listed below
- Leo-voter = 0.007%
- CUBlife = 6.8% (Based on full year)
- HIVE curation = 0.006%
- HIVE inflation = 0.002%
- HE dividend tokens = 0.002%
All in all, LBI earned just over 82k LEO in its first year. This represents a return of 35.4% on 233k LEO
It's not a return of 35.4% to investors, it's more like 17.7% to investors as dividends as 17.7% into growth. We'll call the APY for LEO earnings to be 17%
LBI is a core is a growth fund token. Dividends are a novelty to keep investors happy. I cant show you charts or even give you numbers from year 1's CUBfinance holdings because I had issues with a HDD and lost alot of work. What I can do is show our holdings at year-end.
I like to play the drum to the same beat so every week, every Saturday I harvest CUB's from our farms and convert the harvest into a kingdom investment. Everything to see above that is not BLEO/BNB is something we have got for free from harvests so 100% profit no whatever the prices.
Let's finally look at the LBIs growth chart for year 1.
Look at that chart, is that not the perfect chart to be able to show investors? We can see a few bumps and dips but overall, we've grown very consistently and this can be seen by using the red trending line as a guide. GOD DAMN, that's a great looking chart. Ok, numbers at the end of years were.
- Total assets worth in LEO = 378,979.64 LEO
- Total LBI tokens circulating = 233,097.88
- LBI token price = 1.63 LEO
So you can easily see that LBI's increased by 63% in their first year. When we add the 17% that's paid out as LEO dividends we get a nice round of 80% which blows doing it on your own out of the water and 100% passive as well.
This number could be over 100% every year if people got involved. The content team earned us near 30k LEO last year. CUBlife earned us around 7k LEO and there's stopping anyone from getting involved and growing LBI's returns even quicker.
Round-Up
There you have it. If you had 10k last year and you did your own thing, you might have 12,500ish now. If you bought 10,000 LBI's with that LEO, those LBI's would be worth 16,300 today and you'd have received roughly 1700 LEO in dividends (based on a full year). This results in a 5,500 LEO difference or LBI to put it in broader terms, you would have earned x3.2 times more LEO.
