What is Hive SBI?

Hive Stake Based Income (Hive SBI) is an account-based curation program. You sponsor accounts for regular ongoing curation, and then you receive back curation rewards as upvotes on your own content. This empowers both accounts to earn a sustainable crowdfunded basic income.

Stakeholders can choose to tokenize their voting units into HSBIDAO tokens and receive their curation rewards as HSBIDAO dividends instead of upvotes. Hive SBI maintains a buy-wall for HSBIDAO on Hive Engine at 0.475 SWAP.HIVE.

HSBIDAO Liquidity Pools

One of the drawbacks for investors in the ECOBANK project is the complete lack of liquidity. Recently an investor sold 100 ECOBANK and 'crashed' the market. But is it really a crash if there is no liquidity?

ECOBANK has chosen to introduce HSBIDAO:ECOBANK liquidity pools, so investors that are big in both projects can park their tokens in the LP and potentially earn some trading fees.

To support this important development, Hive SBI has upgraded our tokenholder tracking. We now look through the liquidity pool holders and include the HSBIDAO held in the LP when we calculate our HSBIDAO curation dividends. This will still run on our standard 2.4 hour snapshots, but it updates right before curation dividends are calculated each cycle.

Obviously these two screenshots were taken at different times.

HSBIDAO and ECOBANK context

The biggest whale in Hive SBI is Hive account@ecoinstant, and he holds... a lot. He also runs the ECOBANK project, in which Hive account@josephsavage is a big investor. These facts serve as context, but also as disclosure for potential conflicts. Nothing in this post should be considered to be financial advice.

What is this and how does it affect me?

If you already hold both tokens, you can park your holdings in the LP and continue earning the HSBIDAO curation rewards. You may wish to consider the relative pricing, though. Hive account@ecoinstant set an initial price for the pool close to where ECOBANK last traded.

The deeper the pool becomes, the more sticky the price is. If you don't like the price, some of your holdings could be traded at a price that you don't like (impermanent loss). You could trade against the pool first, pushing it toward a price you are more comfortable with. Then when you inject your own holdings into the pool, it will deepen the pool at your preferred price, making it stickier.

Hive account@josephsavage committed not to trade against the pool (change the price) for at least 24 hours after initial announcement by both projects, to give the market a chance to respond.

If you don't already hold both tokens, this only affects you if you decide to buy into the token you don't already hold.

The HSBIDAO Buy-wall

Hive SBI maintains its commitment to keep a solid buy-wall on the HSBIDAO order book at 0.475. As the ECOBANK LP deepens, investors that need liquidity can swap for HSBIDAO and then sell into our buy-wall for SWAP.HIVE. In effect, ECOBANK is able to leverage our buy-wall commitments, along with the significant ownership overlap between both projects, to provide much deeper liquidity without having 'idle' SWAP.HIVE sitting on their own orderbook.

Hive SBI benefits from this arrangement because our buy-wall price is at a modest discount to the 'mint' price for HSBIDAO tokens. As HSBIDAO tokens hit our buy-wall, the remaining HP unit improves, to the benefit of all remaining stakeholders.

Other projects?

Who else could benefit from this arrangement? Any new HSBIDAO liquidity pools need to be manually added to our list. Due to the cost of creating LP's (which ECOBANK paid in this case), this is not an ideal arrangement for most projects.

If your project has substantial overlap between stakeholders, and the token has similar capability to look through LPs (or has no need, as in this case), then it could be a viable candidate or something similar. If you already have deep orderbooks or deep liquidity pools, there is minimal benefit to establishing another.

If you think your project is a good candidate for look through liquidity, let us know and we can add your LP to our list.

Hive SBI Enrollment

To curate accounts using Hive SBI, enrollment is pretty straightforward:

Just send 1 HIVE to Hive account@steembasicincome. Include the name of a Hiver to sponsor in the transaction memo (preceded by @). You and the person you sponsor will each receive 1 voting unit in the program for each 1 HIVE. You can sponsor any active Hiver (except for yourself); it does not have to be a current member.

This is an open-access program. You do not already have to be a Hive SBI member to enroll. You just have to sponsor another Hive account.

The official currency for enrollment is HIVE. HBD transactions are only accepted for auto-transfer functions, not for member enrollment. Enrollments are processed automatically every 144 minutes.

To tokenize your Hive SBI voting units, send 0.001 HBD per voting unit to Hive account@steembasicincome, with sbi-tokens in the transaction memo. There is a minimum transaction size of 0.005 HBD, and anything smaller will be ignored. This will transfer your voting units to Hive account@sbi-tokens and it will issue HSBIDAO tokens to you in return. If you send more HBD than is needed, the excess will be refunded to you by Hive account@sbi-tokens.

If you have questions, please ask in the comments section or join us in our discord channel.

You can check your member level at https://www.hivesbi.com/ or view our new reporting dashboards. The new dashboards also include your HSBIDAO token holdings.

Nothing in this post should be construed as financial advice. Hive SBI is an account-based curation program, not an investment scheme. We designed it to provide additional incentives to support others with ongoing vote support. If you're only looking for 'returns' there are lots of options on Hive that outperform.