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This works like this: when you lease HP, after curation, 50% of the rewards go to the author and 50% go to the curator.
The person you lease the HP from has to be paid in liquid HIVE upfront. After that, the curation rewards are distributed between the author and the curator.
Oh I see. Makes sense. I suppose the curation rewards mitigates your loss then in the sense that your actual loss is the difference between the liquid Hive you paid the HP Holder and the APR you earn from curation yourself during the period of lease.