The Best APR on HIVE

3 Min Read
681 Words

The Only Constant Is Change

DeFi via Hive

There is a lot of talk about yield farming and staking in LeoFinance. I'm here to tell you about a project that has been flying under the radar on Hive for 3 years, and some of the opportunities it presents for anybody who'd click on this post because of the title.

It's a maturing project that already has many use cases. What isn't apparent is that it's been running it's own decentralized side chain on Hive since before it was Hive. For over a year any account who has delegated to @dlux-io has recieved a daily payout of DLUX tokens. Let's dive a little deeper into whats at play here:

DLUX has a set inflation rate of 5%. This get distributed into several different avenues such as paying the node operators for running in consensus, and content reward via Proof of Brain. This means there is a fixed amount of inflation that gets evenly distributed to delegators. Let's look at a daily payout and focus on one of our newest delegators: @johnsdowie. He currently delegates 5HP and earned 0.043 DLUX. This daily payout isn't quite daily, it lags every day by about an hour which is intended not to favor any particular geographic location. So instead of annualizing at 365, it's 347.

That's 14.921 DLUX per year.

DLUX is currently trading at 0.4 DLUX per HIVE which rounds out to an APR of 120%

120% APR

Of course, if you decide this is the best deal on Hive and go to delegate you'll dilute the pool. @dlux-io currently has roughly 40K HP delegated to it.

Delegation PoolAPR @ 0.4Half-Price APRDouble-Price APR

Price has a huge play in the APR, so let's briefly go over some of the tokenomics of DLUX.

  • Roughly 12.42 M tokens have been minted.
  • 8.475 M are Powered up for Voting (6M held by @dlux-io are forbidden from voting rights by code)
  • 680 K are held in governance accounts with a similar power down schedule.
  • About 900 K are held for a fixed price sell(Send 1 Hive to @robotolux, get 1 DLUX)
  • About 800 K are in content and marketing accounts
  • Leaving just around 1.5 M in liquid accounts.
  • There are currently over 2200 Hive accounts with some DLUX.
    • It's likely ~1,900 accounts don't know they hold DLUX that was recently airdropped.
    • These accounts will have less than 10 DLUX.

We firmly believe the technology to trustfully interact and distribute information belongs in the public domain. While you can fork DLUX or run it's code to build your own side chains to Hive, or modify the methods to be used on other blockchains. We've programmed an ICO to help raise the amount of tokens to 100M via direct sales. So if the pool of fixed price tokens ever sells out there will be up to 100K additional tokens minted at no less than 1 DLUX per HIVE. If these sell out the price will automatically adjust higher, and operates with feedback, but the floor price will not change. Once this ICO is over we won't own more than 2% of the total tokens, in what we intend to be the most fairly distributed token ever made.

This means that this additional inflation shouldn't force the price lower than 1 Hive. But it will play a factor in price movements above 1 Hive.

Now finally, what do you believe the value of Hive will do? It's a large community, with ~free transactions, powering cool layer 2's... XR networks and NFT showrooms. If you don't have a great place to put your HIVE now, I suggest reading more about DLUX and delegating, running a node, or building content. You can buy and sell tokens on our DEX with fees of 0.3% and no transaction fees... And our DEX is about to get a huge upgrade as we transition to autonomously controlled multi-sig accounts.

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