Turning Hive Rewards into Real Investments: Week 4
It is the fourth week of turning hive rewards into real investments. As mentioned in earlier posts, I intend to bring back the investment returns to hive and continue the process. I think for a couple of months once the investments mature.
Thanks to @terganftp for providing another 5HBD in week three. He has been a huge supporter of the project.
This is the fourth week of that journey and as promised, I will let you know how it's going.
Mutual Funds
At the beginning of week 3, we had 17,089.37. At present the investment is now 18,507.08.
The stockbroker returned some money from stocks purchase that didn’t go through. I invested it in mutual funds.
This means the total return in mutual funds is 18,507.08 from a capital of 18,268.48.
Stocks
It has been a bloodbath in the Nigerian stock market with over 4 trillion naira wiped out. First was the Trump statement and while the market recovered, investors thought it was over.
The latest dip is the worst since 2010 with over $3 billion wiped away and this is all due to new tax law about to be implemented. The introduction of capital gain tax on Nigerian equities caused panic among investors leading to selloffs.
The shares are currently down by 4.48%. That means the stocks worth 14,735.4 are now worth 14,074.95.
I am unfazed because it is a long-term game for stocks and I believe the tide will change in no time. I expect that things will return back to normal by month end.
Nigerian stocks are still massively undervalued especially when you look at the financials, earnings history, dividends and fundamentals.
My weekly progress report is to show you how your Hive rewards no matter how small, they can give you something in real life scenario.
It shows that you don't have to wait before earning 100 USD on posts before investing. You can start small.
TTSLA
In my last update, I saw a comment from @khaleelkazi on TTSLA. I checked and was interested in it. TTSLA is Tokenized Tesla and the first Real World Asset (RWA) launched by LeoStrategy. It is a synthetic token designed to track TSLA shares price on a 1:100 basis.
I saw that as an opportunity to invest in foreign stocks and purchased 2 units for 62 HIVE. It was available at a 20% discount and who would miss such an offer.
The 2 TTSLA is now worth 72 HIVE at asking price. I expect Tesla shares to increase soon which mean TTSLA should appreciate too.
I have also been receiving daily yields from my TTSLA holding in the form of HBD
What I Learned This Week
Compounding is slow but a powerful metric. The Trump news, coup rumor, and capital gain tax on Nigeria stocks caused panic for investors. I expect a rebound soon. Stocks is a long term thing and I am ready to ride the storm
Week 2: 7,000 to 7,029.76
Week 3 mutual funds: 16,930 to 17,089.37
Week 3 stocks: 14,735.4 to 14,222.5
Week 4 mutual funds: 17,089.37 to 18,507.08
Week 4 stocks: 14,222.5 to 14,074.95
Week 4 Tokenized Assets: 62 HIVE to 72 HIVE and 0.01 HBD
See you next week.
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STOPFirst: I sent along 46 Hive instead of $5 HBD ... Probably easier for you to convert the Hive to cash than HBD. Thanks for keeping this series going.
Second: Stock market crashes suck. A few words from a major figure like Trump and everyone feels the ripples.
Third: What are your thoughts on tokenized stocks? TTSLA for example. I really like the idea and it should be fairly simple for me to do... if it wasn't for the Canadian laws involving securities :)
And here is where things get long. I promised to support this initiative and I am absolutely committed until January but after that? Well, I was hoping you could look over a rough draft of one I'm intended to do in the Great Little Dragons community hopefully sometime early 2026.
Sorry if it is long but I figure you would be able to give good feedback and I'll use the $5 I gave to you as an example :)
Thoughts:
In that light I've been trying to figure out a good way to lend people money on Hive in a way that is beneficial to them and has a reasonable chance of getting repaid.
Just for fun lets say that you wanted to borrow $20. Assuming it was for something useful like investing $20 into mutual funds. Or perhaps you wanted $20 because you are a keke napep driver and you need a tank of fuel so you can keep working. Or a seamstress who needs materials to create a dress someone wants to buy from you. Or maybe you are a loyal Hivian and your cellphone died so you need $80 to get a basic cellphone so you can keep on posting. Small amounts to be sure but important if you don't have it.
*(Yes I know you could use $24,000 but I'm thinking much smaller)
Anyways... if I look at your account you have 191 Hive. Roughly $20 worth.
If you need it now? Sorry, its locked as HP so you need 13 weeks to remove it. Plus, I'd really rather people keep their stake and not sell it for cash.
So... How about this as an idea.
Borrow $20
Repayment option #1 :
Delegate 191 Hive to the lenders account and each week have the delegation reward pay off the debt. Sure it would take 9 years to pay off (assuming 8% delegation reward and no interest). Yes, someone could unstake their money and run. But for any relatively honest person? Delegate and your minimum payment is covered, do it once and its easy. Side bonus: This account regularly upvotes so it makes better return than having it sit with you (I see your voting mana at 93%) and you could end up getting bigger upvotes as a side benefit :)
Repayment option #2 :
Purchase 2,000 GLD tokens and preferably hold them. This is the fun part. Each GLD token is valued at 100 GLD : 1 HBD. $20 HBD would be 2,000 GLD. If you borrow $20 or 2000 GLD they are pegged to be the same. However,if you purchase the coins it goes into the community treasury so its exactly like you paid the loan.
Result: There would be a listing like
Borrowed: 2,000 GLD ...... Held by borrower : 1,400 GLD
Easy. You can see what was borrowed and a quick wallet look will tell anyone exactly whether you have purchased GLD. Once you hold 2,000 GLD you would have paid back the loan
Here is the fun part.
You hold the 2,000 GLD coins. When you get the HBD from your curation rewards and you don't know what to do with it? Purchase the GLD to repay the loan....
But you are holding the coins. If you need the money to buy more mutual funds? Sell the GLD coins and take the cash.
I think of it a bit like a readvanceable line of credit. Once you "pay back" the 2K GLD by buying the coin, sell and get more money if you need it....just buy more GLD when those post rewards come in.
Strengthening community over time
I'm hoping that by doing this I can help some people invest in themselves or into mutual funds while still keeping their money on Hive. I'm hoping that people will take some of their earned wealth and invest it back into the Hive infrastructure rather than see Hive as a piggy bank to be raided when times are tough.
Still a work in progress.
As I mentioned I'm just writing you as I value your thoughts and I need to work hard to make a "full featured whitepaper" but for now...
My thoughts are :
Any thoughts?
Thank you for the Hive, I received it. Thanks for the support so far.
TTSLA sounds like a good idea so far. It is a way for people to access real world asset via the crypto world. I enjoy the dividends I am receiving on a daily basis too as it has risen to 0.007 HBD. That is around 0.09% daily return.
The first idea sounds nice but I fear it relies on goodwill. People can undelegate and move on. For it to work, it requires designing a system where
This prevents the my ability to undelegate or try to recover the account thus protecting the loan.
I tend to like the second option because it gives functionality to GLD tokens. I will love it to serve as collateral for borrowing either Hive or HBD.
I am looking at it in a sustainable way and it is somehow tricky because it involves some juice to be given out.
You launch an ICO for GLD tokens. You create 2 accounts GLD.rewards and GLD.voter
Now for the ICO, GLD tokens holders qualify for
Loans
Upvotes
Dividends
Users can also delegate HP to GLD.voter for GLD tokens that will mean they also get upvotes on their posts or can stake it for dividends or for loans.
I buy $20 worth of GLD tokens which is 2000 units during ICO.
I stake them which automatically qualifies me for upvotes on my posts from GLD.voter. I can then request for a loan of $18 to pay $20, (2% off my GLD tokens). That can be the management fee.
Then I repay the loan either by setting GLD.voter as beneficiary on my posts, or returning in liquid form over a set period of agreed time.
Also note that, my staked 2000 GLD tokens will earn daily payouts.
So GLD treasury is the ICO capital pool
Revenue stream are management fees, curation rewards from GLD.voter
Collateral is staked GLD tokens
This sounds cool on my head but there are different things to be done to make it perfect and sustainable.
I think the LTV should be set a 50% of GLD holdings. This is to safeguard against price movements and all. Imagine I borrow $18 against 2000 GLD (worth $20) staked. If price of GLD drops, I have no incentive to repay the $18 loan. I will rather the staked GLD are liquidated which is a loss for the lender.
However, with a 50% LTV, it safeguards both parties.
There is also the upvote part. Upvotes is an integral part of HIVE. It is an incentive for people to hold GLD and stake or interact with it. If users fail to delegate or upvotes stop coming in, they sell off their tokens, price drops, utility drops and the system crashes.
The ICO capital can be designed to either cater for buying Hive and powering up to encourage users and provide sustainable utility for GLD.
I also thought about inflation from the dividends, new tokens shouldn't be minted, curation rewards can be used to puchase GLD from the market and distributed as rewards for stakers.
Sinks can also be created to burn GLD tokens and make them scarce
This is my thoughts at the moment