It seems every crypto project wants to have a flywheel. We have seen the phrase used time and time again, and its a catchy marketing tool. LBI needs to jump on the "flywheel" bandwagon.
Ok, so not that kind of flywheel.
The LBI Flywheel.
We have set in place several different layers of asset growth, most of which is passive for us.
We have @lbi-eds, with HP and EDSD minting us some EDS each week. This is nice, easy passive asset growth. Our HP is safe, powered up and delegated to @eds-vote. Our EDSD are backed by HBD and relatively safe (main risks are a depeg or rug). Steady growth over time.
Similarly, we have our @lbi-dab wallet. RUG is higher risk, but higher yield. It mints us DBOND each week, which is backed by HIVE. That's effectively 100 - 200 Hive value increase each week, depending on how RUG yield pans out for the week. There is another layer of growth, with DBONDS minting us DAB.
We have our HP balance, the majority of which is delegated to @leo.voter. HP grows passively at around 3%. We then yield LEO, which grows our staked LEO position again passively. Some more assets added to the balance sheet each week.
HBD earnes interest, also nice and passive. Currently 15% yield (obviously subject to change). We pull a third of that out to go to income, and compound the rest. Again, asset growth over time.
Once each of these things generates income at the end of the process, some of that will go to dividends. But 40% of it will feed back to buy more assets. Again, another layer of asset growth over time.
So as you can see, there are a number of layers of growth built in to the new LBI model. Each week we will have more assets than previously. The value of those assets obviously fluctuates, with Roughly 1/3 of the assets valued in LEO, 1/3 in HIVE, and 1/3 in HBD. This has interesting impacts on the token asset backed value in the short run.
But each week we gain assets.
Here is the kicker that makes this a flywheel...
LBI's token supply is hard capped - no new tokens can exist ever. In fact, LBI is now deflationary. Each week a small portion of our weekly income is used to buy some tokens off the market, and burn them.
So what we have is a steadily growing asset base, and very slightly decreasing token supply. This should mean that over time, numbers go up. More assets divided by less tokens = higher price per token - in theory anyway.
Time will tell if the LBI flywheel works out.
Remember, an important part of the puzzle is building a liquid token, that can be traded easily in or out. To that end we have set up the liquidity pool which you can learn more about from this post.
Thanks for checking out this post, if you would like to learn more about what LBI has been doing recently, here are some more posts to read:
Thanks everyone for the support so far, it has been an awesome first couple of weeks.
Cheers,
JK
@jk6276
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