A new LP on Hive Engine has been launched, pairing the token from the HSBI project with LBI. HSBIDAO is the tokenized version of HSBI units, and represents a different angle to this long term HIVE (and prior to that STEEM) based project. A pool with this project was an interesting choice for LBI, but an obvious move when we thought about it.

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What is HSBIDAO?

HSBI has been around for many years, and has evolved over time while retaining it's core offering. To get HSBI units, you sent HIVE to @steembasicincome and "sponsor" someone by putting their account name in the memo. Both accounts (you and the sponsored account) then get a unit of HSBI, which gives a lifetime of vote support on content. It was aimed initially as a form of voluntary Universal Basic Income, but a more accurate description would be it is curation of an account rather than an individual post.

That is the unit version. HSBIDAO is a much newer concept, and is a token version trading on Hive Engine. People can convert their units into tokens with a fairly straight forward process. The token version does not come with vote support from HSBI. Instead it earns a share of the curation rewards. These rewards are dripped regularly into holders accounts directly as more HSBIDAO tokens.

HSBIDAO is quite a stable token in terms of value. It should always trade basically between 0.475 and 0.5 HIVE. The lower end is supported by the project by a very large buy wall, and the upper end is basically what the value is. There is no point paying over 0.5 for a HSBIDAO, as that is what you could get one for by sponsoring and then converting them over.

To learn more about HSBI, here are some useful links:

• Curation dividends for HSBIDAO in liquidity pools - Relevant for LBI as we are the second project to have an LP with HSBIDAO, and have been whitelisted.

• Hive SBI website - lots of useful info, and a place where you can look up how much HSBI you have.

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What is LBI?

For those seeing this post from the HSBI side of things, that may not know what LBI is, here goes.

LBI is an investment fund style project, with a target of holding roughly 50% LEO assets, and 50% "other Hive based assets". We have been around for many years, starting life on STEEM, launched and run by @silverstackeruk of SPI (@spinvest, not SBI). A bit over 18 months ago, LBI was re-launched with a new manager, @jk6276 and a new path was put in place for it.

Since then we have capped supply, by burning all available tokens at the time, and ensuring no new LBI can be minted any more. We have accumulated a range of assets with a dual purpose. Our method is to build in layers of asset growth, with income as an eventual byproduct. For example, we invested heavily into the @eddie-earner EDS project. Rather than just buy EDSI for the yield, we bought EDSMM, EDSD and made HP delegations. All of these are ways to mint the EDSI token. So we use one asset to add more assets to our balance sheet. None of the EDSI are sold, they accumulate. The yield comes from the weekly payout to EDSI holders.

This pattern is repeated across our holdings wherever we can. Buy one asset to accumulate a second, and then eventually generate an income out of it. Our goal is a steady increase in our asset base, and generate some income along the way.

Yes we hold half our assets in a range of LEO eco-system tokens, but we remain independent, and make our own decision's on where we invest, and when we buy or sell. LBI in some regards is a fence sitter, we have one foot in the LEO camp, and one in HIVE, and both sides don't like the other so we are disregarded a bit.

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What investing in the HSBIDAO/LBI pool means.

Putting together a position in this pool could be considered as a portfolio allocation of 75% HIVE assets (HSBIDAO plus half of LBI) and 25% LEO. It would be worth considering if you want some limited exposure to the LEO ecosystem, without becoming an active participant in it. Maybe you see what is going on in LEO, and while cautious (maybe even wary) you don't want to miss out on some benefit if it goes right and LEO does well.

If you hold both tokens the opportunity cost is low for adding to the pool. The pool is whitelisted by HSBI, so HSBIDAO tokens in it will earn the same regular curation rewards as all other tokens, so you don't miss out there. LBI also includes it's tokens in pools in our weekly dividend, so you don't miss out again. The only thing to beware of, and understand the risks is around the fluctuations of price and pool balances (Impermanent Loss).

HSBIDAO is essentially a stable token "pegged" (for want of a better term) at 0.5 HIVE. LBI's price can fluctuate depending on the value of our assets, and market forces. So, if you go into this pool, and LBI's HIVE price increases, then you will have less LBI and more HSBIDAO units. Conversely, if LBI drops, you end up with more of them and less HSBIDAO.

At the moment there are no extra pool rewards allocated to the pool. LBI likes to add pool incentives, and we likely will to this pool in the future. In the short run, we have a number of pool rewards to renew, and this one will have to wait a month or so. But there is a high chance we will add rewards in April. Normally, we use LEO to reward LP's, but I'm thinking we'll try something different and add LBI tokens themselves instead. Our LP rewards all come from our income generated, so they are not inflationary to our token in any way.

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How to get involved?

If you have LBI, and want some HSBIDAO to pair it with, it can be difficult to buy at the moment. But check your wallet, and either the link I gave above, or the "Others" tab on your Peakd wallet page. You may have some HSBI units you could convert to HSBIDAO tokens.

To convert units to tokens, you need to send 0.001 HBD per unit to @steembasicincome with !sbi-tokens as the transaction memo. Before you do this however, keep in mind that tokenizing your HSBI units means you no longer get upvote support on your posts from the HSBI program. You will start to earn a share of their curation instead, rewarded as more HSBIDAO tokens.

The pool itself is still shallow, so don't use it to swap with any size yet. Arb bots will find it soon enough, and swaps will start to happen to rebalance the prices in the pool to fair market prices. But in the short run, it's best if you find other ways to get some HSBIDAO to put in.

Likewise, if you have HSBIDAO, but not LBI, it's not a good idea yet to use the pool. Best way would be to sell some HSBIDAO into the market, and then buy LBI with the proceeds, or swap from HIVE to LBI. So swaps in small amounts, as our HIVE/LBI pool is not deep enough yet to avoid slippage.

DCA in over time if you want to build a position.

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Keep in mind that none of the above is financial advice, please do your own independent research.

To learn more about LBI, take a look through some of our recent weekly update posts, where you can learn about our asset mix and my random rambling thought each week.

Whitelisting the LBI pool by HSBI does not constitute an endorsement of the token as an investment. Everyone needs to make their own decisions.

I want to thank @ecoinstant for jumping in early to the pool, and for his supportiveness in general. I'd also like to commend @josephsavage for building a fantastic long term project like HSBI, and keeping it alive and relevant for all these years despite much adversity at times.

I hope to see some people considering adding to this pool, thanks for checking out this post, and feel free to ask any questions you like in the comment section.

Cheers,

@jk6276 for LBI.

Posted Using INLEO