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How long do you need to pool Swap-Hive with DEC for to make up for the Hive-Engine Deposit Fees?

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Zebedee
@revise.leo
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I've been pooling DEC with Swap Hive for some weeks now on TribalDex, to double my SPS to DEC airdrop points.

I also pool SPS with DEC, and my liquid SPS has been covering MOST of the DEC but I'm soon going to be staking as much SPS as I can and selling some for packs (as well as taking some cheeky profit!), so I'm now looking to Hive to cover a higher proportion of my DEC-POOLS.

It was FINE when Hive was up above $1, but it's been a bit marginal since it's gone back down to around the $0.80, and if it stays here I would need several thousand more HIVE to pool with DEC for SPS.

The problem is that there is a 1% fee for depositing Hive to Hive-Engine as Swap Hive, which is a bit high IMO, but there are better options available such as the 0.25% when you deposit to the better Leo-Dex.

(Obviously the later is preferable, but it's not as liquid, and so I've found I have to feed it in dribs and drabs.)

So how long would I have to pool extra deposited Hive with DEC given the 1% fee for depositing as swap hive on hive-engine or 0.25% fee via leo-dex...?

At current prices...

(And note this will change!)

1000 Hive is worth 44000 DEC at time of writing ), so for pooling purposes, I would have an extra 44 000 DEC counting towards my SPS drop if I pooled that 1000 Hive with the equivalent 44 000 DEC.

According to the SPS airdrop calculator, 44 000 DEC gives me 44 000 airdrop points (Not TOO difficult to work out for DEC since 1 DEC = 1 point!) and that gives me 6 SPS a day, currently worth $5.65.

Now for the unpleasant bit... the H-E deposit fees..

  • 1 Hive = $0.84 at time of writing
  • So your deposit fee = $8.40 (10 Hive is 1% of 1000!)

So that means that at current HIVE/ DECA and SPS prices you'd cover your costs in 2 days worth of staking (you can't make a fraction!).

BUT... if you want to get SWAP HIVE back to Hive going the reverse route, there is ANOTHER 1% withdrawal fee, so that would mean 4 days of staking.

Of course if you go via the less expensive LEO DEX, you'd have covered your 0.25% deposit fee within a day, and say if you were to withdraw via the LeoBridge, to BSC, that would only cost you 1 LEO, or around $0.23 extra.

So currently if you went via the LEO-DEX route, you're deposit fees are covered in one day!

Final Thoughts... DEFO worth it ATM

With a >200% return in SPS on DEC, it's certainly worth depositing some Hive to Hive-Engine to pool, especially if you can go via the leo-dex route!

Even via Hive-Engine it doesn't take too many days of staking to get yer money back, and then the rest is free.

It's just a matter of keeping an eye on the prices of all three tokens involved - it's quite a complex interaction between the three!

If Hive goes on a moon shot and DEC and SPS fall in value, you'd have t pool for longer to get those Swap Hive deposit fees back, but historically Hive doesn't moon that often, so it's a reasonable risk!

You'd have to be fairly unlucky to time your Hive deposit at a few days before a Hive PUMP which means it's more rational to withdraw your Hive and sell it, but even then you're still getting your >200% APY and there are other routes out of H-E (via DEC for example) for your Hive if you need instant access and don't want to pay aggy the withdrawal fee.

But for me, the quick pay-back on the fees ATM means I'm not too shy about using my Hive to pool with Dec, just Leo-dex Please! Not Hive-Engine!

Posted Using LeoFinance Beta