Leofinance: The Epitome Of The Investor's Dilemma

What to do with our LEO?

This is the question everyone has to ask themselves. Do we sell it? Not a smart move in my opinion but certainly an option.

Do we stake it to use as curation? Certainly an intelligent move.

Or do we put it into one of the pools?

As we can see the options are plentiful. In fact, we are going to have to really start honing in on what we want. There is a lot more coming down the road and we must be prepared.

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The Investor's Dilemma

This is a topic that has traveled through the investing world based upon a book by the same name. While there are different circumstances it applies to, the thinking can be applied to Leofinance.

Basically, we are having to decide what we do with our LEO. How do we utilize it for the best return while reducing risk? Also, we need to factor in the opportunity costs, the fact that making one decision negates the returns from another decision.

For example, if the choice is between staking LEO and curating versus putting it into the wLEO liquidity pool, we are dealing with a fairly straightforward analysis. What is the risk of each compared to the return. We can weigh those factors versus each other. Of course, there is a third option here, split the LEO up between the two options. Hence we have another variable to consider.

Yet this is straightforward. Let us look at some other options as they exist presently:

  • stake leo/curate
  • wLEO LP
  • bLEO Kingdom
  • swap bLEO for CUB/Stake in Kingdom

Of course, there are a variety of Kingdoms to join, increasing the number of possibilities going forward.

And to make matters worse, we are going to have pLEO and like Thorchain Leo (tLEO?) in the future.

This is enough to make one's head spin.

Naturally, there are different risks with each option and the payout is different. This is something that has to be considered every step of the way. We also have to factor in our experience and knowledge level.

To make matters worse, the situations are fluid. Another example will be the pLEO liquidity pool. When that goes live, how does that affect the bLEO pool? Do people pull out of that one to chase the return of the former, causing the latter's return to skyrocket? Only time will tell on that one but it is in the realm of possibility.

As we can see, this is quite a dilemma.

Adding To The Value Of LEO

Over time, all of this is going to add to the value of LEO. We are seeing a lot of options open up which forces people to make some tough choices.

Here is the present token circulation from the Leofinance.io website.

leomarketcap.png

We see there is just shy of 8.9 million LEO distributed right now. A little more than 5 million is staked. There is 2 million liquid which could end up in the new pools. Or, as stated, some might move from the existing pools into the new ones.

The point is we do not truly have a lot of LEO out there to fill these pools with. Over time, as more things are added, it is going to get tougher to get a hold of LEO. People are going to have to choose what they do with each LEO that enters their wallet.

It should be pointed out this is not a bad thing. In fact, it is exactly what we want to have happen. The development team should keep bringing so many use cases to the table that each of us pulls out our hair (if we have it) trying to figure out what to do. Sadly, some are going to end up like kids in the candy store, wanting everything.

Those with an idea of what their risk tolerance along with the vision for the future are able to do well. The key is to develop a plan that works for you and then stick to it. If staking/curating is your thing, go with that. Most can pull in a fine 8%-10% return along with the overall price appreciation as the platform grows. Couple this with author rewards and the individual will find he or she beats most equity market participants (let alone what the banks provide).

Our focus should always be avoiding large, permanent drawdowns in our capital positions. This can be fatal to our wealth generation. Leofinance appears to be building for the future, ensuring that anything directly related to the token is going to grow over time. We will see pullbacks in price, yet if we step back to look at the chart long-term, we see a continuous trend upward.

Of course, we do not want to be caught on the sidelines with no return for long periods of time either. That is where having LEO in areas where a steady return is provided, even if reduced, can be beneficial. That is part of the appeal to the staking/curating option. While it is not the best return, it does enable a steady flow of LEO into our wallets. Therefore, even if the market is pulling back, we are positioning ourselves better in the future. Liquidity pools can have impermanent loss, something that participants should be mindful of.

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Source

This is the dilemma all who are involved with Leofinance are going to have. What do we do with our LEO? What is the best option for us?

Whatever people choose, in the long run, will likely provide a fantastic return. We can rest in the thought that just by having LEO, there are going to be higher prices in the future. While this is not guaranteed, the development is such that expansion cannot help but to take place. Anyone who was around about 9 months ago knows what happens when there is a liquidity squeeze in LEO.

The amount of LEO on the market is not plentiful. We need to keep in mind that the use cases are expanding faster than the inflation. This is something that few consider in the crypto world. While many like to talk about inflation, they do so in a vacuum. The bottom line is token inflation means nothing when there is massive growth. There will come a point, very soon I believe, where we will see the inflation rate is not large enough.

That is how fast things can move. We have at least 2 more LEO use cases coming online in first half of the year. This provides more options for everyone involved. Of course, the key is to have these newer platforms pulling in more people to Leofinance. With new applications, we are going to see many opportunities to gain users.

All of this feeds the same pot. And at the bottom of it all is LEO>


If you found this article informative, please give an upvote and rehive.

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Posted Using LeoFinance Beta



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19 comments
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I'm enjoying grabbing cheap Leo, every week I buy at least a little, the effort the team puts in the options available for investment (as you have mentioned) is a big reason why Leo is my focus.

We are very close to hitting a point of demand outweighing the supply and things will happen very quickly after that.

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pixresteemer_incognito_angel_mini.png
Bang, I did it again... I just rehived your post!
Week 87 of my contest just started...you can now check the winners of the previous week!
!BEER
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We are staking every little bit of LEO we get in this account... On @thelogicaldude account on the other hand, it gets sold on green days and staked on red days and delegated to this account... to build the HIVE stack that some gets powered up to build more delegation to the @leo.voter account. @hivehustlers is all about staking half the rewards and paying out the other half to COM token stakers!

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It's more interesting when a certain crypto has many use-cases. It is a well-known fact that use-cases and adoption is one factor that makes a token increase in value. So, we'd glad and it will interesting to have more LEO use-cases rolling out in the future.

More interesting is the fact that all LEO use-cases are profitable in the long-run.

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I diversify and pool as well as powerup. That way their is no emotional regret when one option performs better than the other

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Good Suggestions, Leo has become a large and distinct network full of options that are all useful.

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Am really impressed with every work the Leofinance team have put to promote the blockchain to another level, it's really awesome.

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I think Leo is a very good example that all tribes should follow, It give people trust over time by its brilliant projects .

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I can boldly say the best community under hive is Leo , management of Leo always do an amazing thing, they always bring positive contribution to the Leo community , different options to earn Leo and to increase the price of Leo ,I should have been active on leofinance but still nothing spoil ,I can still start now and I will stake every damn Leo I get back

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You know I actually thought I was alone in the Leo dilemma. I want to stake and I also want to invest in Cub and other liquidity pools and also invest in CAKE and I also want to delegate for daily returns. There's really not that many to go around. It gets me so confused every single day but I always have it at the back of my mind that there's no right or wrong decision, there's just mine.

It all works out and the returns keep coming.

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The truth is I don’t really like defi but have been buying Leo, recently bought 2000 Leo with my portfolio making it 20k. Curating with my 20k Leo is a better option for me.

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I am building my positions in CubFinance farms using part of my LEO earnings. The CUB earnings from there feed into my kingdoms and eventually I plan on using part of the returns to get back some LEO to stake here to curate. In a way, I believe in LEO long term but I just wish things wouldn't get delayed all the time.

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I have only staked it so far; but have had cub experience - its performance has been somewhat lacking unfortunately

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I mostly stake and delegate because I understand those things. Also, with a smaller account I don't want to be spread too thin. I let INDEX and HUSTLER and LEO and CTP do the work for me as I try to learn a little more every day. !BEER

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Ha Ha Ha
My dad would say these are good problems to have! 🤣

I share your view that right now it’s difficult to know where to put your money; stacking Leo here for curation, wrapping it and sending it to Cubfinance as a Liquidity Provider or Uniswap for Geyser Rewards or sell it for Hive and but Leominers?

Plus you can sell it for Hive and delegate your Hive to Leo voter or use it for double dipping curation. Decisions, decisions, it’s a good problem.

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Unfortunately, I am still speaking with the voice of a new person on Hive. I do agree with you that staking should take first priority.
When we stake curate and engage as you said this creates a steady flow of Leo or any community token a person is active with into our wallets.
Knowing this a person should have at least 5,500 Leo staked (which I do not) before venturing off to other opportunities. IT is prudent to have a good foundation, at least then if an investor suffers some losses they will be more easily absorbed.

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