Why a LENM:LEN Dieselpool?
Some of you asked why we would do a LENM: LEN dieselpool. It’s not common to pair a miner and the token it mines. People would probably expect something like LEN:Swap.Hive first. We will try to answer this question in this post. There are actually a lot of reasons:
A way to redistribute our earnings from the secondary income streams
The money collected from the sale of LENM is delegated out and the interests of these delegations is the money that we work with. 25% of this money flows back into the fund. 25% is used to buy back and burn tokens and 50% is invested in secondary income streams. These income streams are growing and we generate income with them. Instead of letting them get bigger and bigger, we would like to redistribute a part of this income with you. By linking a reward pool to the Dieselpool we will be able to distribute an array of tokens to you.
Holders of LEN and LENM will be able to get these rewards by providing liquidity to this Dieselpool.
Paving the way for organic growth and compounding in Liotes
For the people who have LENM staked that mine LEN tokens, we wanted to add the possibility to grow organically in Liotes. With the Dieselpool you will be able to buy LENM with LEN! You will therefore be able to grow the amount of miners just with the LEN that you have earned with them! By reinvesting your earnings you can compound your income!
Staking ability for LEN
At the moment LEN tokens that are mined by LENM can either be sold on the market or used to buy Risingstar packs. With the Dieselpool it will be possible to stake LEN and get a return from it. This is one more use case. More use cases means more demand for LEN and more market volume.
Regular return also for small holders
If you have very few LENM staked, you will get a LEN as a mining reward very seldomly. With the Dieselpool even holders of small token amounts will get a daily payout from staking tokens.
Options for staking LENM
You will have the possibility to stake LENM as you do today to get LEN or you can stake them together with LEN in the Dieselpool. If you unstake LENM and put them in the Dieselpool, you will increase the APR for all LENM that are mining and reduce the APR of all the LENM in the Dieselpool. This will make the return on staking more dynamic. By adding new rewards to the Dieselpool regularly, there will arise opportunities to optimize your return on staking LENM.
You will even be able to influence the return of the dieselpool because everybody will be able to add rewards to this pool!
Growing the project without reducing your APR
With every LENM that we sell on hive-engine, we have more money that flows into the project. The return on the dieselpool might incentivise people to buy LENM. If these LENM are staked into the Dieselpool, they won’t reduce the APR for the people using LENM to mine LEN.
Giving stability and regular returns to investors
The Dieselpool will distribute a wide array of different tokens but it will also distribute LEN tokens. The LEN tokens that we buy at the moment with the burn money are put aside and will be used to fund the reward pool. This will give stability in terms of return since the same token that is staked is also distributed.
By pairing LEN with LENM we will have two of our own tokens that are co-related with each other and also have a closely linked value. This means less volatility and more stability This will make this pool perfect for long-term investors that would like to save, and accumulate different cryptocurrencies… The risk of impermanent loss will be very small with the LEN-LENM dieselpool! Both tokens also have a limited supply and therefore the return of the Dieselpool will stay quite stable simply because there won’t be unlimited possibilities to add more liquidity to the pool.
With this Dieselpool it will be possible to earn a wide array of rewards from our secondary income sources. However there will also be other advantages for everybody involved especially in terms of token supply. More about that in the next post :-)
As of today this is the state of the funding:
Image source: www.pixabay.com
Liotes
A project run by @ph1102 and @achim03
Looking like the funding is slowly but surely increasing. The new component of the project sounds very solid. I look forward to it being started. Take care.
Yeah, funding is slowly increasing and I hope we will collect needed funds until as latest as mid-December... ;)
!PIZZA
Sounds like another great idea from you guys. I would definitely join that pool.
Well, dieselpools are present for some time, but nobody did this combination that we will do it... Maybe it's insane, but we will see how it works when it's ready... It can't hurt, that's for sure :)
!LUV
@ph1102(3/4) gave you LUV | wallet | market | connect | <><
What sounded like a strange idea at first now makes a lot more sense! I'm very excited for this! A wide array of reward tokens sounds nice but so does increased APR from mass LENM unstaking! I will try to do a little of both for a while but then eventually switch everything to the diesel pool.
It did sound strange at the beginning for us, too... lol... But, we did pros and cons, brainstormed many times and we think that it should work... It's always nice to get some feedback from others and confirm (or abandon) the idea... :)
!PIZZA
2 credits added for interacting with our posts
I think both sides will reach the both APR over time. However will the new diesel pool decrease the amount of LEN available from LENM mining?
Posted Using LeoFinance Beta
No, it will not influence in that way as we aren't adding a new "minting" pool... ONLY LENM can produce LEN tokens and that will not change... 144 LEN tokens per day, 1008 per week...
Diesel pool will be initially filled by tokens that we have bought (and will buy) from the market, and organically by people who add liquidity...
So, no ADDITIONAL tokens minting!
Cheers!
!PIZZA
Thanks for clarifying. So this means higher APRs for everyone involved.
Posted Using LeoFinance Beta
Well, it depends on many things, but inflation and printing tokens won't be a problem as there will be no any...
Yes but this is funded by some of the HE passive income sources right? So it is at least backed somewhat.
Posted Using LeoFinance Beta
Exactly... Not minted tokens from thin air, but backed up by second-layer income sources... ;)
This is really a selling point to join that pool. THat would make those who keep their LENM staked to earn more LEN.
We hope that it will make some additional sales of LENM tokens also, but it's possible that people will unstake LENM and put it in the pool...
In both scenarios, it should be beneficial for both token holders... ;)
!PIZZA
PIZZA Holders sent $PIZZA tips in this post's comments:
seckorama tipped liotes (x1)
ph1102 tipped darmst5339 (x1)
ph1102 tipped uyobong (x1)
@ph1102(2/10) tipped @seckorama (x1)
ph1102 tipped proto26 (x1)
ph1102 tipped jfang003 (x1)
Learn more at https://hive.pizza.
Very interesting to see how a new usecase for LENM and LEN token. Indeed, I see how it'll make the tokenomics of the Liotes project more dynamic and more profitable. I'll glady add to the pool.
I believe that the fact that there will be two markets for both tokens will add a lot of dynamics to it. It will create arbitrage possibilities and also it will give more return options for holders.
This is very apt. I'm taking advantage of the arbitrage opportunities for hive-engine tokens in the diesel pool.
2 credits added for interacting with our posts
I like compounding, so I like the sound of this: "With the Dieselpool you will be able to buy LENM with LEN! You will therefore be able to grow the amount of miners just with the LEN that you have earned with them! By reinvesting your earnings you can compound your income!"
Thanks a lot for the feed-back. I think that this will allow to let the stake grow quite organically which wasn't the case so far.
2 credits added for interacting with our posts
This is interesting. Of course, these are your assumptions based on some mathematics. I see it more as an experiment. But have you done any simulation? Or a survey of how many LEN/LENM holders would be willing to invest in this. Logically, all of them, if you ask me. Only then will we see whether the profits here are greater than they are now. I am in favor.
btw: Reminds me in one way of the DHEDGE daily drips from ArchonTribe.
!LOL
!PIZZA
!BEER
lolztoken.com
Nothing. It just let out a little wine.
@liotes, I sent you an $LOLZ on behalf of @seckorama
Use the !LOL or !LOLZ command to share a joke and an $LOLZ. (1/2)
To be honest, you would be the perfect audience for this pool... :) Why? You have stated many times that you are not a gamer and an additional use-case for LEN tokens would be nice to have... Well, this is exactly that... Until now, you could just accumulate and HODL your LEN tokens, but when we start the dieselpool you will have the opportunity to use those LEN tokens to make more of them, or to get other tokens as a reward for providing liquidity!
It's just an additional use case that people CAN, but don't have to use it... So, it's not an additional risk for the project itself, not the users who will use it... ;)
!LUV
!PIZZA
@ph1102(2/4) gave you LUV | wallet | market | connect | <><
Exactly! Thanks for thinking of me! 👏 😎 btw: I'm a gamer now, I'm level 25 at Rising Star, I'm climbing slowly but steadily 😁
2 credits added for interacting with our posts
Is that the reason why I can not buy new LENM tokens right now? Liotes is holding 9 k liquid but there is none on the market except overpriced private listings.
Posted Using LeoFinance Beta
Sorry the orders timed out on hive-engine. The LENM should be available again now for 5 Hive.
I learned something new today! I had no idea what a "Diesel Pool" was or how it worked, thank you!
Diesel pools are a kind of liquidity pool like you find on Uniswap or on blockchains like BSC. They are a great tool actually and on hive they are great because they come without transaction costs!