PWR Investment Update - HIVE Payments Starting Soon...

Hello SPIers, today we look into our investment with Hive Power Ventures and its flagship PWR token.

What is PWR?

It's an income token that is soft pegged to 1 HIVE each. It's more than that but thats what it is in 1 sentence.

The project was launched almost 1 year ago by @empoderat and up until now the only way to get PWR tokens is to delegate HP. The APY for delegating HP drops in stages as the project gets older. Currently, it's paying 12% but this will drop to 8% next month. People can also provide liquidity to the PWR/HIVE Beeswap Pool to get PWR rewards.

Its roadmap states that HIVE payments for PWR will begin 1 year after launch and we're getting close to that time. The operator recently put out a post to acknowledge that HIVE payments will begin during the 2nd week of September and to explain how to receive them.

The jest of it is, HIVE payments will be paid to these providing liquidity for the PWR/HIVE LP pool. Payments will be paid 50% PWR & 50% swap.HIVE giving the LP holder the option to either compound rewards directly back into the LP are sell off the PWR part of their reward for HIVE. Holding PWR token liquid in your wallet will yield no rewards.

Lucky For Us

I've been taking our PWR for the past 10 months and matching them off with HIVE to build us a nice LP position. Future rewards being paid to those providing liquidity has worked out lucky for us because we're the 3rd biggest LP holder.

The LP currently yields 20% APY which is being paid as PRW tokens. The APY goes up and down and normally floats between 25-30%, it's a little low at the minute. When HIVE payments start next month, these rewards will be paid 50/50 PWR and swap.HIVE.

What is the plan for SPI?

• Delegation
  The rewards for delegating HP will drop from 12% to 8% next month and we can get a better yield for that HP elsewhere but I think we'll keep that delegation as is and just leave it there. It's only 15k HP anyways.

• LP Pool
  I plan to keep feeding our PWR rewards into the LP Pool until we hit an ownership of 20% of the total LP. It makes no sense to aim to own more than 20% because if we ever need to cash out, we'd just liquidate ourselves and temporarily destroy the peg (the project) at the same time. We aim for 20% and expect our ownership % to drop over time as more people enter and the pool gets bigger.

• Getting Paid
  When we hit a 20% ownership of the LP, we will stop adding to the LP and start selling off whatever PWR will get each week to reap the rewards.