Should LBI Get Involved In BroFi?

about 3 years ago

Have you heard about @brofi yet?

There is a chance you did not. This is a new project that is being put out by @brofund. It is in the "pre-announcement" phase as it is still undergoing testing.

Thus, we are in the very, very early stages of the project.

So what is BroFi?

It is another DeFi opportunity that is right here on hive. However, this one focuses upon Hive-Engine and the tokens on there.

Basically, it is similar to the EDS token in that it utilizes the inflation of a token to generate a return. In this situation, the curation being done from the tokens delegated will be used to buy BRO tokens off the open market and distribute them to delegators. There are a few different delegation pools, which are nothing more than the delegation of each token. Thus, all the LEO delegated is in the LEO pool.

Each pool is ranked according to voting. The weight of each vote is based upon the number of BRO an account holds.

The goal of this project is to establish a powerful curation account in each tribe while also providing a sink for the tokens. Since many are not interested in a lot of the tokens out there, they are just dumped on the open market.

With this situation, however, there is something that many value being used as incentive. The BRO token enjoyed a great run up over the past year and many expect further success down the road. Thus, being able to generate a return in that token for delegating is of interest to people.

Is it of interest to @lbi-token?

As we know, posts results in many tokens being paid out. Often, they are not of interest to LBI. We have a primary focus and should not deviate from that.

That said, we do seek to gain a return wherever we can. Having a few of the BRO tokens coming into LBI each week cannot hurt the return. Especially since this opens it up to more dividends being paid out, which it could roll back into the BROFI fund.

At this point, we have no idea what the returns are. There is no track record since it is still in testing. This post was put out in an effort to let everyone know how things are starting to play out.

Since I personally do not look closing at the LBI Hive-Engine account, I have not monitored what we received in those tokens each week. My presumption is that most, if not all, are sold off for LEO.

That said, it might be worthwhile for LBI to consider something like this. This focuses upon roughly half a dozen tokens such as LEO, CTP, STEM, WEED, CCC, and PAL (there might be some others). We could even discuss taking perhaps 10K LEO and delegating it. This would affect our curation rewards but could open us up to another asset flow that could prove beneficial long term.

If a system like this keeps operating in a circular loop, we will likely find that it is getting more valuable over time, thus increasing the ROI that is paid out. This is what we are witnessing with EDS. Could something similar happen with BroFi?

The key here is that is requires little effort from the LBI team. A few tokens delegated as they come in and then collect more returns. This will help to diversify the LBI holdings some while taking advantage of the success of the BroFund and its token.

Let us know what you think.

This article put up by @taskmaster4450le.