The interesting use cases of the CTPSB token
I launched the CTPSB project in September 2020. The idea was to create a community account for the CTP tribe to support the development of the members. During the first month, the community could contribute to this project and at the end of the month they would get 1 CTPSB token for every Hive that they contributed.
How does CTPSB work
There is the @ctpsb account and there is the CTPSB token on hive-engine. The account and it's Hive Power is the underlying asset for the token. The value of each token is defined by the Hive Power on the account divided by the number of tokens in circulation.
The @ctpsb account is using it's hive power to support active members of the CTP community who create quality content. The account also creates posts and organises challenges on a regular basis. The generated author and curation rewards, together with the organic growth of the hive power, allow the account to grow in over time.
At the end of September 2020, there were 6000 Hive Power on the account. Today there are 23'000.
Price evolution of CTPSB, source: tribaldex.com
New tokens can only be created or burnt if the according amount of hive power is either added or powered down. This means that the creation/deletion of new tokens doesn't effect the token value. In other words, the Hive value of the CTPSB token can only go up. Also, every token in circulation is backed by real hive power that can be traced on the blockchain.
Faster growth thanks to leverage effect
The CTPSB token evolves in a linear way with the growth of the underlying hive account. There is however a leverage effect in place that allows the token to grow faster than a normal hive account. People can delegate to the @ctpsb account and get weekly dividends in the form of CTP tokens. These dividends are financed by the tribe curation rewards. Thanks to these delegations, the account grows at the speed of it's own hive power together with the delegated hive power, which is around 16'000 Hive at the moment.
Thanks to this leverage effect, the account grows at a rate of around 20% APR.
Very useful way to use the CTPSB token
When you compare the CTPSB token with other tokens like Index, Bro, Income or Dhedge, the big difference is that it doesn't distribute dividends to it's holders. All the income is reinvested into the token and is mirrored through the token value. In financial terms, the CTPSB token would be the equivalent of an income accumulating growth fund.
For the my other project Liotes, that I run with @ph1102, we have realized that the characteristics of this token can actually offer a great usefulness. For our Diesel Pool LEN:LENM, we have created a reward pool. The problem with these reward pools is that you add some rewards when you start it. However, the more liquidity is added, the lower the APR for liquidity providers becomes. Ideally, we would like to have a similar APR over time, even if more people add liquidity to the pool. We solved this problem by putting CTPSB tokens as rewards in this pool. Thanks to that, our reward pool grows at a rate of around 20% APR. If the liquidity grows at a lower rate than that, the APR in for liquidity providers is actually growing over time!
In addition to that, we also realized that people love to get tokens as rewards that have a stable value and grow over time.
CTPSB is a perfect token to add as rewards in liquidity pools.
On another level, for the same project, we use CTPSB tokens when we want to accumulate liquidity. Instead of just keeping swap.hive tokens, we buy CTPSB and we get 20% APR on our liquidity.
For limited amounts only
What has to be said, is that this later use case is working great for limited amounts only, because the liquidity on the market is limited. There is a market maker that retraces the value of the token and sets new buy orders on a regular basis. If many people want to sell their CTPSB tokens at the same time, power downs are necessary to provide this liquidity and it can take some time. Therefore, I wouldn't suggest to buy hundreds of tokens to store liquidity.
I believe that thanks to its non common structure, the CTPSB token is actually a very useful tool for people who want to build stuff on Hive.
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Fantastic token and community project! Thanks for the great work.
It was a project that was meant to support a community but it ended up becoming a very useful tool for other things that didn't exist at that time :-)
Great post I've been waiting for about ctpsb. Just to clarify, can I get ctpsb by delegating HP? Or only in the liquidity pool and on the market?
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When you delegate Hive Power to @ctpsb, you will get weekly dividends in the form of CTP tokens. To get CTPSB tokens you can either buy them on the market or you can provide liquidity to LEN:LENM and get rewards in CTPSB.
Got it!
Thanks! 🙌
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Great re-cap of the CTPSB token and how it works... It's one of those tokes that you just keep in your wallet (as savings) and exchange when you need money...
As we discuss, many of our investors in @liotes have a similar view about LEN tokens...
It's a great token to keep in the wallet and actually grows over time. Since all is backed with hive power, it's quite a safe bet :-)
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It is very impressive!
What would be the way to create a token that does allow for storing thousands of dollars in a ctpsb style token and compete with hbd in apr?
CTPSB could store thousands of dollars but the problem is the liquidity on the market. The money that is stored in the token is powered up so it takes some time to power it down if people want to pull the money out. The more money is in such a project, the more liquidity is needed. A solution would be a liquidity pool I believe. Then the apr would probably bee lower if the delegations don't grow at the same rythm.
I think that a liquidity pool would indeed be a good idea. It makes all liquidity available for trading, while limit orders on a market usually get a spread very quickly. Especially on a low volume token like ctpsb on hive-engine
This is a great token that I am aiming to buy for my SORT token growth portfolio.
CTPSB is definitely a great token to park some liquidities. The growth is regular and would fit the bill quite well I believe.
This is the first I am hearing about this community. I will check it out. Thanks for sharing
Thanks for stopping by.
Though the delegations have gone down over a period, the growth of the account as a whole is excellent.
Plus, the upvotes do add value to the community.
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CTPSB is fullfilling quite a lot of different roles and really makes a difference for the CTP community I believe.
Yes i believe that too.
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Hmm is #CTP a general tag (including Splinterlands content)?
It's normally limited to online business related stuff but it's quite open. If you consider SL as a a kind of business, you should have no problem using the ctp tag.
Thanks @achim03 for sharing some interesting use cases for CTPSB Token wishing you much success my friend
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Thanks a lot!
You are welcome hava fantastic day
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I've got to admit this is the first I've heard of CTPSB, although CTP is known to me.
The way you structure it sounds sustainable as compared to other dividend tokens.
However, as you mentioned, should holders want to sell in bulk, a power down is required. Does that mean you will also deal OTC trades for holders who wish to liquidate BUT don't mind waiting till it's powered down properly? (just curious, I'm not a holder btw 🤣)
I have built a market maker that grew in size alongside with the token. This market maker puts a certain percentage of the available funds as buy orders for CTPSB. If over a longer time period the liquidity on the market maker is depleted, a power down is started. Like that the market maker works like a buffer until the power downs are completed. Once there is again enough liquidity on the account, the power downs are stopped. It works quite well like that but it can take some time if people want to sell thousands of tokens at once.
Yes! Any pool that includes CTPSB among the rewards will have my instant attention. I think LEN:LENM is the only one right now... maybe WINE:WINEX
That's nice to hear. I believe it's a perfect fit for rewards in liquidity pools. The token grows in value while being in the reward pot. This stabilizes the apr for the liquidity providers in the long run.
I see. INDEX, BRO, and DHEDGE also have dividend rewards 🤔. I just sold them without checking them as I don't have time to learn every token I got 🤣.
CTPSB is your project too... Well, that's news for me or I ever forgot it because I think of other tokens rn 😜. I think I ever sold it too. I don't know if I need to stake it or just hold it. Less time to search for information 🤣. From your post... It'll be like an AWESOME token, I think? 🤔 Hold and sell it when you need it, It'll just increase in value.
Tyfi
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CTPSB is a community project that I have been managing since day 1. You don't need to stake it. Just keep it in your wallet and sell when you want. It will grow in hive value at a rate of around 20% apr.
If I'm not wrong, @flaxz took CTPSB as a template when he created AWESOME. Both have a very similar structure.
That was the base of it, and modified and evolved a bit.
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I see... 🤔 Ty for the brief information 🙏
I agree that CTPSB is a great token. Its value keeps growing and the APR will also be reflected in the token value. I agree that liquidity is an issue but that is probably the case with most income tokens that have a bunch of HP.
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It would probably be possible to solve the liquidity issue with more free hive but it would mean that simply less money is generating curation rewards. So it's a kind of middle way between providing enough liquidity and generating a maximum of return.
It's great that you do these posts every once in a while explaining how CTPSP works.
I should do the same for LEN as well I believe. When you are dealing so much with a project everything seems clear to yourself but for people outside, this might not be the case at all :-)
I agree! And Liotes may not be as easy to understand for someone who doesn't follow it. You have multiple layers and moving parts in the project that are interlinked.
I also agree with you. Whenever a coin learns how to make such uses, it becomes more popular in the days to come and its value goes up because every time a coin is burned, it increases in value. The way you've described this project on the side makes me think it's going to become a lot more popular in the future. I will definitely participate in it.
I hope you are right :-)
I really appreciate this explanation of what CTPSB is and how it can be used! I have the intention to get into the LEN:LENM diesel/liquidity pool very soon! 😁 🙏 💚 ✨ 🤙
I should also make a post to explain these tokens more in dept :-)
Yes, I think that would be very useful indeed! I know I'd appreciate it! 😁 🙏 💚 ✨ 🤙