There is a lot of talk about HBD, Hive backed Dollar, nowadays. It's an algorithmic stablecoin that is actually pretty old and working quite well. Few people know however that there are also Hive backed tokens on Hive-Engine. Since I run two projects that can be considered as such, I would like to present them and explain why they could represent and interesting asset for the future.
Most of the tokens that are created on Hive-Engine come without collateral. This means that they are issued and the only value that they have is the one given by the market. We have seen that it's not that easy to build a sustainable economy behind them. Unfortunately, we often witness a price decay over time. We see that the supply of such tokens grows too much in respect to the demand. Undeniably token prices go south.
Almost 1.5 years ago, I had the idea to back a token with Hive Power. My idea was that such a token could keep it's value simply because of the fact that the hive power behind it was pretty stable and actually growing. That was the birth of the CTPSB token.
In the CTP community we had the problem that there was no real whale and that the community couldn't really take off because of that. We were all small fishes and it was a very slow progress. I had this idea and shared it with @blainjoines and @jongolson. We decided to give it a go and this project has been a success ever since.
The idea behind CTPSB is simple, we build a powerful hive account and tokenize it. People from the community could buy CTPSB tokens for 1 Hive and in return they would get 1 CTPSB token. All the hive was then powered up and this hive power would then support the community.
We later introduced a delegation opportunity as well. People who delegate Hive power to @ctpsb would get weekly dividends in CTP tokens. This was financed through the hive-engine tokens that the account would generate. This combination proved to be pretty powerful.
The value of the CTPSB token is calculated every day. The hive power of the account is divided by the number of CTPSB tokens in circulation. The account grows through curation and author rewards and this growth is actually leveraged thanks to the delegations. A market maker is adapting the buy and sell orders almost every day according to the token value.
The CTPSB token grows at a steady pace because the underlying account grows organically thanks to curation and author rewards. Even without selling new CTPSB tokens, the account grows.
The ctp community profits manifold. The CTPSB token is growing faster than a real account would because of the leverage from delegations. The delegators get an interesting return and the authors of the community get powerful upvotes from the account.
There is full transparency for the token because everybody can check the hive power on the account and see the tokens in circulation. Also, since the token is backed with Hive Power, even if the project is liquidated, investors could get their money back as soon as the power down is executed.
My friend Erik (@flaxz) was inspired by CTPSB and created a similar project on the same basis for the alive community. The AWESOME token is backed by the Hive Power on the account and the liquid hive. Basically the principle is the same as for CTPSB but Erik has implemented some improvements and the token is doing pretty well.
The AWESOME token is growing pretty. It is leveraged by a big amount of delegations.
In March 2021, together with Zoltan (@ph1102) we have decided to create another hive backed token: The Liotes Energy Mills. The concept is a bit different from CTPSB.
LENM are actually mining tokens. We sold these tokens and 100% of the proceeds of the sales of these tokens was powered up. All the LENM tokens are therefore backed by Hive Power. The Hive Power is then leased out and the income of these delegations is used as follows: One part is used to increase the hive power, bringing the theoretical value of LENM up. Another part is used to invest in secondary income sources and a third part is used to buy back LEN tokens and burn them.
LENM mine LEN tokens that can be considered as dividends for staking LENM. The part of the income that is used to burn tokens gives value to these dividends.
What is interesting about this project is that it has a long term goal. Since every week the underlying hive power is growing organically, the amount that is leased out grows over time and so is the generated income. In the long run this will allow to give more value to the LEN tokens.
The evolution of the LEN token (the dividend token) is pretty stable over time.
Since its conception, the project has evolved quite a lot and many side projects have been added. There is the possibility to delegate Hive Power to the @liotes.voter account and get daily dividends in LEN tokens. There is a diesel pool that pairs LEN and LENM. The reward pool is financed through the secondary income sources of the project. There is also a curation program @ourpick that picks interesting posts almost every day and finally there is a Liotes ranking that makes the whole project more entertaining.
When we look at the price evolution of CTPSB and AWESOME, we see a nice evolution of the value in Hive. Both projects are reinvesting their income and the value evolution is directly mirrored in the price of the tokens. For LENM it's a bit different because it pays daily interests in the form of LEN tokens. This means that the income is paid out daily to the investors.
Let's connect ! You can find me on these platforms:
Posted Using LeoFinance Beta
Very good my friend this was very informative 😎
@achim03 !ALIVE !CTP
Thanks for stopping by!
What a genius concept if you ask me I would have thought use case was limited but it seems like the versatility of Hive SMT tokens really has some value not only in income. That's why I like blockchain it can be inter twined with so much concepts. Keep up the hard work and I wish you the best✌✌
The hive-engine tokens are so simple to create that it offers a lot of freedom for creative solutions. We are definitely lucky to have them :-)
Great presentation, my friend! All three are projects I love and am involved with.
I have to remember to share these !CTP tokens more often. :)
The !CTP tokens are always appreciated ;-)
Thanks for sharing and have a nice day.
!PIZZA
!LOLZ
!PGM
!LUV
!PGM
!MEME
Posted Using LeoFinance Beta
BUY AND STAKE THE PGM TO SEND TOKENS!
Discord
Support the curation account @ pgm-curator with a delegation 10 HP - 50 HP - 100 HP - 500 HP - 1000 HP
Get potential votes from @ pgm-curator by paying in PGM, here is a guide
I'm a bot, if you want a hand ask @ zottone444
@brianhuang(8/10) gave you LUV. H-E tools | discord | community | <>< daily
Credit: funnypost
Earn Crypto for your Memes @ hiveme.me!
lolztoken.com
Chase it around the block.
Credit: reddit
@achim03, I sent you an $LOLZ on behalf of @brianhuang
Use the !LOL or !LOLZ command to share a joke and an $LOLZ.
Delegate Hive Tokens to Farm $LOLZ and earn 110% Rewards. Learn more.
(8/10)
Thanks for the tokens :-)
Well explained about all 3 tokens Achim, and thanks a lot for including AWESOME as well, keep up your great work and stay awesome.
Made in Canva
!ALIVE
- @flaxz - Admin/Moderator
This post is AWESOME!
It will therefore be highlighted in our daily Curated Collections posting for today.
The goal of this project is to "highlight Awesome Content, and growing the Hive ecosystem by rewarding it".
Source
@achim03! You Are Alive so I just staked 0.1 $ALIVE to your account on behalf of @thisisawesome. (3/20)
The tip has been paid for by the We Are Alive Tribe through the earnings on @alive.chat, feel free to swing by our daily chat any time you want.
Thanks a lot for the curation Erik!
Stay awesome Achim.
Made in Canva
!ALIVE
- @flaxz - Admin/Moderator
View more
!1UP
Thank you for your curation efforts :-)
Your content has been voted as a part of Encouragement program. Keep up the good work!
Use Ecency daily to boost your growth on platform!
Support Ecency
Vote for new Proposal
Delegate HP and earn more
Thanks for the curation!
There are so many tokens. The other day I think was sent a few Liotes token. Now I know what they are !
LENM tokens are miners that you can stake and LEN tokens are the dividend tokens that you can sell or even use to buy Rising Star packs with :-)
It's awesome that we have the first two tokens inside our Liotes balance sheet and we are actually rewarding people in LEN-LENM diesel pools with them! In that way, people get quality tokens and don't have to think about them losing value at all!
Liotes is a kind of upgraded version of those 2 tokens... Yes, LENM value will go slower up than AWESOME or CTPSB, but people are getting "daily dividends" during the journey... So, in some way, taking part of the profits and keeping the rest of the base wealth intact!
Posted Using LeoFinance Beta
Do you have any info on the LEN-LENM diesel pool? how do we take part?
Huh... I think that we never did that tutorial that I have promised to do... :( You can check more details about it here https://leofinance.io/@liotes/lenlenm-diesel-pool-is-alive
If you have provided liquidity to any pool, it will be easy to jump on this one...
Posted Using LeoFinance Beta
When I was working at a bank there were investment funds that we sold. One type was called teaserizing, meaning that return was added to the value of the fund parts and there was the type that would pay out the return. It's a bit the same difference here. LENM offers more flexibility in this respect.
Nice sharing! Glad I am part of the Liotes project!
And we are happy to have you on Liotes ;-)
Fantastic summary and some great projects! Thanks.
Thanks for stopping by :-)
I understand the idea and those 3 tokens are very good examples of it but I feel like there are a lot of Hive-backed tokens. For example, SPI and EDS are also backed by Hive. Although some of the assets in SPI are also out of Hive to diversify.
Posted Using LeoFinance Beta
I don't know exactly how SPI and EDS work but they are also good examples of tokens that are backed by real value.
I couldn't find a good post about SPI but latest EDS report has a good explanation on how it earns based on the Hive Power all the way at the top.
Posted Using LeoFinance Beta
You have received a 1UP from @luizeba!
@leo-curator, @ctp-curator, @bee-curator, @pimp-curator, @vyb-curator, @pob-curator
And they will bring !PIZZA 🍕
Learn more about our delegation service to earn daily rewards. Join the family on Discord.
PIZZA Holders sent $PIZZA tips in this post's comments:
@brianhuang(8/10) tipped @achim03 (x1)
Learn more at https://hive.pizza.