MPATH Weekly Report and Token Distribution - over 23.0% APR - 14 February 2021 [MAP Hive FinTech]
Welcome to the MPATH Weekly Report.
This week we are seeing the rise in the prices of HIVE and HBD, plus the continued fall in the price of SIM tokens; the two are not unrelated.
For MPATH holders, we see the beauty of our mixed model, in that as income falls a little the vote-yield rises, so overall we are only marginally lower than last week. Also note that the estimated blackchain yield for our HP has dropped from 15.2% to 14.9%. This, as always, is due to the higher market prices stimulating extra activity and hence the reward pool reacts by lowering the yield. This is all in terms of the HIVE economy; if we calculated in USD, then everyone would feel much better about their earnings. But one cannot keep changing the metrics to suit one's emotional investment :-)
As I said last week, the DCity game requires a level of economic understanding and competence. The value of SIM in Dollar terms is the same now as it was 2 weeks ago! It has always been one of the issues with tokens that they can be bossed around by the underlying coin - in this case, HIVE. The solutions are complex and involve some kind of relationship to both HIVE and USD, and not every token is structured that way.
Regarding DCity, one obvious consequence is that the HIVE income from city rankings has now become much more valuable. This can be the motivation to buy more cards, especially at such cheap prices.
We now have our dedicated voters back online, so MPATH members will see the vote weights react more quickly to MPATH holdings. However, please remember that votes are updated daily. This is a safety feature to avoid using the same tokens multiple times, and allows us to manage the fund without staking requirements.
A reminder to new members that votes do not come from this @mpath account - it manages the funds and posts articles - but from our dedicated voters of maxuve and sometimes maxuvd. I say sometimes as it is designed to give random boosts to some member posts, thereby elevating slightly the income to smaller accounts while maintaining the profitability of those on 2000 MPATH tokens.
Our buyback MPATH token price will continue to rise in line with the whole fund's asset value, but as the increments are in 0.001 HIVE weekly price changes may vary so as to keep pace with the NAV. The capital base remains healthy and other sources of income, such as DCity and DHEDGE, continue to perform well so that we are not wholly reliant on the voting-economy. We have started increasing the sale price above the original 0.60 HIVE; this will be slower than the buyback price until we reach a spread of about 0.03 HIVE, at which point they will rise in unison.
One other thing to note about the sale price: the Hive-Engine platform deletes open orders after 30 days, so that the lowest available sale price will, at some point, be removed automatically. You will thus see 4 or 5 sale price-points as the price ladder slowly makes its way upwards.
I also see users buying and selling in the current large spread between our official buy and sale prices. That's all fine and the reason we have a market.
Here is a graph of the MPATH token price. (Thanks to @gerber for the discord-bot.)
As you can see, it is a rather jagged affair, mainly because the spread remains wide so those spikes are merely the difference between someone buying tokens and someone selling them.
And on to my usual closing remarks...
As ever, I give the caveat that individual member returns depend on many things, but these are our baseline figures to see how income changes from week to week. This is also a good time to remind members that such high returns may require adjustments at times so that our Voting Power does not get too low. We have plenty of capacity left, so this is not an issue, as yet, but members with 2000 MPATH tokens are getting votes from about 35k HP, so even if the VP is down to 60% that's still an effective vote from a 21k HP account.
A final reminder that the maximum holding to receive votes is 2000 MPATH, and the maximum to receive reward distributions is 5000 MPATH. You may, of course, own more than this as an investment. We shall increase these if we see the demand to do so, but they are there to attenuate the effects of large accounts and thereby help the smaller accounts. Also worth a reminder that any accounts below 10 MPATH will receive no benefits.
For full details, please read How the MPATH Program Works [May 2020].
Have a good week!
The MPATH headline figures are:
MPATH tokens active = 43,460 Earning HP = 42,980 Voting HP = 38,880
HP in MPATH = 22,400 Other HIVE = 3,310 Total HIVE = 25,710
MPATH ABV = 0.569 HIVE (+0.002, +20.2% APY) Sale Price = 0.608 HIVE
Estimated Gross Earnings = 7.23 HIVE per 1000 MPATH = 37.6% APR (7.23 = 1.67 income + 5.56 votes) Estimated Net Earnings = 4.45 HIVE per 1000 MPATH = 23.1% APR (4.45 = 1.67 income + 2.78 votes) Total MPATH Distribution = 72.0 HIVE = 118 MPATH tokens at 0.608 HIVE sale price
Hive est. APR = 14.9%
Note that "Other HIVE" is the sum of all holdings not powered up as HP: liquid HIVE and HBD plus holdings within Hive-Engine. Also note that such values are volatile, especially any holdings priced in US$, so the above numbers are a snapshot and may have changed when you look at the @MPATH account.
The Asset Backed Value (ABV) is our total holdings calculated in HIVE divided by the number of active MPATH tokens.
Any questions, please ask in the comments below or in our public chatroom.
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