Investing in the Liotes Project + Winning a Rare Splinterlands card!

Readers of my posts might know that one of my interests on Hive is to learn new things, and that includes looking out for new and interesting projects to be a part of.

In Dec 2021, I was interested in the launch of the CARTEL project and I wrote a post about it and bought CARTEL tokens as well. You can find it here.

In this post, I would like to share about my recent discovery about the Liotes project and what I have done and invested so far! The Liotes project is run by @ph1102 and @achim03, and I am sure many of you who play Splinterlands would be familiar with, from their video and post sharings, as well as giveaways, because I also know them this way.

I will spare the details of the project in this post because you can refer to the Liotes Whitepaper (link), instead, I will share some of the Math (based on my own calculations) behind the potential rewards, as well as what I like about the project.

So what are some of the ways to earn potential rewards?

There are two tokens in the Liotes project, Liotes Energy Mill (LENM) and Liotes Energy (LEN).

The first way is to buy LENM tokens. You can do so at places like Hive Engine, LeoDEX and TribalDex.

• Every hour, 20 random LENM will be awarded 0.3 LEN each. This means 480 LENM tokens will "win the lottery" daily.
• Given that there are around 7000-8000 LENM in the supply currently, the chance of winning the lottery in a day for 1 LENM is about 6-7% (using 480 divided by 7000-8000). Let's take the average at 6.5%.
• The price of LENM and LEN fluctuates based on the market. For calculation purposes, I will use the cost of my LENM (bought at 4.66 Hive on average) and the current last price of LEN at the time of writing (0.0775 Hive).
• With 1 LENM, over the course of a year, one can expect to get 6.5% (chance of winning the lottery) x 0.3 LEN (reward per win) x 0.0775 Hive/LEN x 365 (days in a year) = around 0.552 Hive
• This means the annual expected yield works out to be 0.552 / 4.66 = 11.8%.
• Do note that this yield is "expected" because it depends on many factors. The yield can be higher if luck is on your side and you win more LEN, or if the price of LEN goes up. The yield can be lower if the reverse happens.

The second way is to delegate HP to @liotes.voter.

• I think this should be quite familiar to most as there are many curators that reward users in various ways for delegation of HP.
• I have delegated 20 HP to them for more than 2 weeks now and have received 0.073 LEN daily.
• So using a price 0.0775 Hive/LEN, the annual expected yield works out to be 0.073 LEN (per day) x 0.0775 Hive/LEN x 365 (days in a year) / 20 = 10.3%.
• Similarly, do note this yield is "expected" because it depends on many factors, such as the amount of daily payouts and the price of LEN as well.

So what do I like about the Liotes project?

On the top most of my list, I think the team is great! When I first discovered this project and read the Whitepaper, I had many questions, because I was partly curious and was partly doing due diligence since I had thoughts about investing in this project. I would like to thank @ph1102 and @achim03 for always answering my queries so promptly, and being patient with my lack of knowledge. They even made a Q&A post (link) on this! Hehe!

While the expected yields of 10.3-11.8% are not super attractive (if you were to compare them to 12% for HBD Savings), I am willing to bet on the future of the Liotes project where there could be potential gains from the prices of LENM and LEN tokens. When investing in projects, I would think more about the long term success instead of the immediate rewards. As long as the daily payouts are reasonably attractive, that's good enough. (That said, I still keep a portion of my funds in HBD savings as diversification is always important, at least for me.)

There are also many other tangible/intangible benefits too. For example, building a network of friends, learning new stuff for self-improvement, and more fun!

Speaking of more fun, Liotes recently turned 1 and they held a Birthday Staking Challenge! I managed to get a Top 5 spot after staking 10.21 LENM tokens and I was rewarded with another 1.13 LENM and a ticket for a lucky draw, and here's what I won for the lucky draw - a Water Elemental card! (The last I checked, it is worth about 9 USD!)

So how much have I invested so far?

Currently, I have 11.34 LENM tokens staked, bought with a cost of around 43 HBD (or around 48 Hive). This is by far the largest "investment" I have made into any project on Hive.

Also I have delegated 20 HP to @liotes.voter. This works out to be around 10% of my existing HP. Going forward, I plan to delegate around 10-15% of my existing HP to earn LEN tokens.

With that, that's all I have, but before I end...

I just want to highlight that there are always risks involved in investments in all tokens (be it CARTEL or LENM or LEN) so I do urge readers to do your own due diligence by reading up on the project first before you go into it.

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Yeah chanced upon it while I was browsing through Hive posts in the community! Thanks for the pizza!

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Thanks for this interesting review of our Liotes project! Appreciate your support! We have built our project with an idea of slow-growth, but stable income sources... The first year was all about building the founding, the second will be about building up additional value and rewarding our community...

Btw, we have a third option for earning rewards with LEN/LENM... You can provide liquidity to our diesel pool and be rewarded with 40%+ APR by daily payments in different tokens...

Cheers!
!WINE

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You are welcome! Good stuff are worth sharing!

Yes I remember that the liquidity pools are something new, but I haven't explored that yet. Just wondering, why are payments in different tokens and not just in LEN or LENM?

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Well, we wanted to build the rewards pool with different tokens... To attract people outside our community... And also, to make the pool APR even more stable... ;)

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Thanks a lot for the great article about Liotes. It's difficult to reach a broad audience in the very colorful world of Hive and such articles deffinitely help us to get more eyes on the project :-)

I would also like to point out that in addition to the things mentionned here by you and @ph1102, is that we run several curation trails in many tribe tokens which support the people within the community. The higher they are in the Liotes ranking, the more love they get from these trails ;-)

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You are welcome! Oh yes, I remember seeing this spreadsheet before! Am making my way up the ranking, slowly but surely! :)

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