I'm probably well overdue to post an update on the status of how LBI's liquidity pools are going, and what the plans are moving forward. It has been a goal of mine since taking over running LBI to improve the liquidity of the token, making it easier for people to buy or sell their investment, quickly if needed.
Current status.
At present, we have six supported liquidity pools.
- LEO/LBI - our deepest pool with $1,000 of liquidity. 35,000 LEO paired with nearly 8,000 LBI
- HSBIDAO/LBI - HSBIDAO is effectively a liquid staked version of HIVE, with a complex name. This pool holds $540 in liquidity.
- SWAP.HIVE/LBI - one of our pools that definitely needs to become deeper. Current liquidity is around $330
- SWAP.BTC/LBI - LBI's pairing with the HE wrapped version of BTC. $250 in liquidity at the moment.
- CENT/LBI - CENT is another extremely liquid token on HE. A joint venture with rewards funded by both projects. $150 in current liquidity.
- SWAP.HBD/LBI - Our newest pool, still in growth phase with a current APR of 32%. $125 in current liquidity with a target in it's first phase of getting to $200.
You may notice the LEO pools rewards have just ended. I'll be renewing these tomorrow.
POL
Recent I have begun to use the LBI tokens that we have bought back from supporting the LBI price to remain around it's asset backed value. I've been adding these gradually into all our active liquidity pools, with a priority initially on the SWAP.HIVE pool, and more recently on seeding the SWAP.HBD pool. Currently, we hold $127 in liquidity in our "Protocol Owned Liquidity" project, in the 
I avoided holding LBI tokens within the fund for a long time, believing it was best for investors to have all the tokens circulating. However, during buy back phases where we are providing liquidity into the order book, we have accumulated LBI tokens on our books. Some have been deployed in tokens swaps, bringing 
The key goals of holding some POL are to:
- deepen the pools in general, and
- seed specific pools that I feel need more liquidity.
What is next.
I don't have plans to add any further pools in the short term. My primary goal for the coming months is to boost our pools usefulness by enticing more LBI holders to add to one or more of the pools, and grow liquidity. At $200 in liquidity, the HBD pool will earn a 20% APR, plus our weekly dividend. The LEO pool will be funded tomorrow at a 15% APR, representing it's more mature state, but still a small increase on the rewards cycle that just ended.
The other pool I'd like to promote is the HSBIDAO pool. This one earns multiple yields. The pool rewards we have funded, HSBIDAO in the pool earns it's rewards (from HSBI curation), our weekly dividend, plus swap fees in the pool. Why does this pool matter so much? Currently we are the only accessible swap path into HSBIDAO. The other HSBIDAO pools don't have alternate token pairings (ECOBANK, THREE, PIXYDUST).
The main benefit for us from this will be if the new Hive Engine interface, HiveSwap becomes popular. The service launched recently, and I've been using it for LBI quite a bit since. The key feature it offers is multi-hop swaps. This means a swap can be routed through several hops to give the best outcome, and enable seamless swaps between tokens that don't have a direct liquidity pairing.
As and example, if you hold LEO, and want HSBIDAO, you have a couple options. Swap, or sell your LEO to SWAP.HIVE, then buy HSBIDAO from the order book (usually at a decent price, but sometimes not readily available). Alternatively you could swap LEO - LBI, and then go LBI - HSBIDAO. Using Swap-Hive, it is simply bundled for you in one tx.
This matters to LBI liquidity providers as that one easy TX for the end user results in swap volume (and thus swap fees) for two LBI LP's.
The other potential benefit is that LBI becomes an attractive partner for other projects. Projects can avoid the costs and liquidity dilution of having multiple pools by simply creating a pair with LBI. Let's say you run a token project on HE, and want an LP without too much fuss. You could go the straightforward path and pair with SWAP.HIVE, or you can pick the more interesting choice and pair with LBI. We would whitelist the pool to be included in our dividend bot, giving the pair a little extra yield from our side. People can easily swap into your token thanks to our linkages to a number of significant assets. And we love collaborating with other projects in this space.
Conclusion
LBI currently has a decent level of liquidity, but there is plenty of space to grow the depth of pools, and partner with other projects to add options. Hive-Swap bringing multi-hop swaps into play at last benefits us, and could benefit us a lot more if it grows and gains adoption, and we can grow our liquidity alongside that.
Providing liquidity is not all sunshine and rainbows, there are added risks involved over and above simply holding LBI tokens passively. But if you understand those risks, know how Impermanent Loss works, and are prepared to accept those risks, adding to LBI LP's can be very rewarding.
Thanks for checking out this post, and following along with all things LBI. I'd love to hear from you all in the comments section.
Cheers,
