Let's Talk About the LIQUID HIVE POWER Token
HIVE POWER
For most people here on HIVE, we understand how this platform and blockchain works. We understand how staking works, that the more Hive Power (Vests) a user has, the more "influence" or voting value that person has. We always want to power up our HIVE to gain more influence on the network, to support the excellent authors and comments here on the HIVE blockchain.
It's always good to build up that HP for increased interaction, influence and prestige - but also for increased curation rewards, witness voting influence and delegation opportunities.
Hive Power is good to have.
HIVE POWER is not Liquid
One of the disadvantages of Hive Power is that it take 13 weeks for a power down. If you had a sudden reason to trade HIVE for another token like HBD (say HIVE jumped up to $5.00 overnight, but most of your HIVE is locked up in HIVE POWER), there's not much that can be done to take advantage of the sudden increase in value. By the time you convert that back to HIVE, it might be too late.
HIVE POWER (vests) are not liquid.
LIQUID HIVE POWER
There is a solution to this liquidity problem. A token available on HIVE-ENGINE (and other platforms like tribaldex.com and leodex.com) where you can receive an HP delegation 1:1 with the token.
The token is called LHP or "Liquid Hive Power".
What makes it "liquid" is that by simply holding the token in your wallet, you automatically receive a delegation for that amount.
For example: If you hold 10 LHP tokens, you get a Hive Power Delegation of 10 Hive Power. Everything is automated and every token has Hive Power backing it.
This Liquid Hive Power can be bought or sold for market rates to whomever is interested in a boost in HIVE POWER. It's a great way to convert your SWAP.HIVE into LIQUID HIVE POWER (LHP) that help support your curation efforts.
The system is completely automated, so as soon as you buy or sell the token, the delegation changes immediately.
Because there is a constant demand for HIVE POWER, there are always buyers for the LHP token, although the buy/sell orders change over time. On rare occasion, some (under)sell their LHP tokens for as low as 0.67 HIVE each! They usually sell a little over 1 Hive each.
Simple Steps
Use your favorite layer two exchange and search for LHP. Purchase any number of tokens.
Once the transaction is completed (within seconds) an equal HIVE POWER delegation appears, in my case added to my existing LHP delegations.
https://hive-engine.com/trade/LHP
https://leodex.io/market/LHP
https://tribaldex.com/trade/LHP
Conclusion
Hive Power is the core of the HIVE blockchain, essential for influence and curation rewards. The HIVE experience is greatly improved when you have HIVE POWER influence. LHP allows for all that same HIVE POWER influence, but with the ability to buy/sell the token as needed!
LHP is a valuable token for it's utility and demand. Like many excellent projects here on HIVE, the only thing it's missing is EXPOSURE!
Did you know about LHP token before this post?
Bless the Most High!
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Thanks so much this information I will check it out
As always, if you have any questions, contact @cardboard he's easy to find the blockchain.
Alright thanks so much
Yes, having written my own post about it last year.
Sadly, for me, as I was a top 5 (#2 or 3?) HODLer of the token, my discussions with Cardboard never resulted in any improvement in liquidity. My objective was to have a far higher number of LHP, but there was no liquidity to give me a quick exit, should I ever actually need some ... wait for it ... liquidity!? 🤷♂️
With my stake, as an "experiment," once I reached this conclusion, I decided to see how long it would take me to sell them all. A mere ... 7 weeks! Okay, yes, that is an improvement over a 13-week powerdown, but ... It doesn't look like this has improved any over time:
Anyway, to each their own. The concept really is excellent, but it needs someone able / willing to fund it much more fully ...
P.S. Sorry, couldn't help comment, as the title caught my eye ... 🤷♂️
P.P.S. To be as fair as I can manage, this liquidity issue is not unique to the LHP token. Most of them (Hive Engine tokens) have a definite "Hotel California" feel to them ... 🤷♂️🤷♂️
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I didn't know you were so invested in this token! I appreciate your insight!
You are correct, there really are not very many buy orders... and sometimes that 1 HIVE order sells out and people still sell for 0.67 (!!!) if they're feeling the fud.
The good news is that even when that 1 HIVE liquidity is sold out, every time I put in a sell order at less than 1 HIVE (say 0.99) it sells. How many could I sell if I wanted to liquidate fast? I don't know. But as long as they don't sell, even if they sit there "forever" unsold, I still have the delegation earning me curation rewards all that time! The way I look at it is that people pay a lot of liquid HIVE for a TEMPORARY delegation that expires, I'd rather pay liquid HIVE for a "forever" delegation that only goes away once I'm compensated (at least something) for them.
How liquid does that make them? It seems to me they're more liquid than powering down. Maybe I'm wrong about that. I didn't run the experiment that you did, so you may have a clearer picture, but my experience indicated to me that they're pretty saleable. Maybe not instantly, but fairly quickly.
LHP is a very little known project, I feel that if it were better known, there would be more buy orders. IF more people knew about it, liquidity would be much higher.
Thank you for your awesome comment!!!!
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Hmmm. Well, depending upon your objectives in investing, you may wish to run a current experiment of your own. And attempt to sell 100s of LHP vs. a few, since there are no fees. You can always buy them back "quickly" ...
The issue for me was having "dry powder" for taking advantage of a market opportunity. For which ... As you know, we cannot just hit the "pause / snooze" button, while we attempt to free up some capital ... I liked the "advertised" benefit of LHP providing me both the benefits of an HP stake, with the liquidity of a HIVE stake ...
Anyway, you and I both place a high value on our liberty to do what seems best. So ... I will stop and hope you do not view my "contrarian" input in a negative way. All investors should seek input, from different perspectives, so they can make a well-informed decision.
P.S. For perspective on why I have chosen to invest some time to write this, I checked my database. I had 2,600 LHP and was talking to Cardboard about my interest in investing toward a stake objective of 10,000 ...
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@roleerob I appreciate the perspective, especially coming from an investor! I encourage everyone to do their research and proceed with caution. The information you provided is helpful for potential investors to know about, even myself. Thank you.
Just out of curiosity, were you able to "liquidate" the token? If so, how did you do it?
Yes, all of them. Via the LHP market on LeoDex. Combined with "tracking" when Cardboard put more "liquidity" in place - at that time ~ 100 tokens at a time. I do not know what he is doing these days.
Not a process I care to repeat.
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ENGAGEtoday.Thanks for sharing that too! I will refrain from looking into it seeing this liquidity issue al before checking it. The idea is great though :)
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Excellent information, Benjamin. thanks for sharing with us. I will need to check it out.
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As always, use caution before investing! And do your homework.
I didn't know about this . Thank you for sharing.
I will definitely look into LHP
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Glad to let people know about this, as always, do your homework and use caution before investing.
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@ironshield - definitely did not know about LHP, but it was awesome to see the breakdown as you did. Always appreciate your content and how you explain things.
Thank you, much appreciated!
Looks like a great concept.
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I thought so too.
I knew about it but I am wondering whether or not the natural inflation on HP is counted when you buy the token off the market? Or does it only count if you don't change the amount of LHP you have?
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Good observation, that would be a good question for @cardboard. I will say that with holding 2083 tokens, I have a delegation of 2184 HP... that's a 4.6% increase, I wonder if that's the natural inflation included over time? That may come for holding them so long, new tokens may not be like that.
Good question :) Of course the delegation increases over time so for example: after you buy 100 LHP, some time later it give 100.1 HP delegation. When you buy additional 5 LHP, the delegation will be 105.1 HP and it will continue to grow over time.
What happens in the case one sells LHP and how would the reduction be calculated?
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When selling you remove delegated HP proportionally to the amount of sold LHP - so not all inflated HP delegation is removed.
I did not know about LHP Token before this post, so this is a great enlightenment to me, and I now look forward to collecting some. Thanks.
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If the investment makes sense to you, just be cautious and do your own research.
Noted and thanks.
I had no idea it existed. What would you say is a good level of HP to have?
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As far as HP, getting past that first 1000 is landmark, then grow 500's at a time over time. Good interaction and quality posts will get you there eventually. As far as LHP, most only pick up a few here and there as available and as possible as an HP boost.
Thanks, that's a good strategy. Almost at the first 500. If hive goes near 90 or below, I will add some more soon. 👍
Thanks for the information. I need to do my research before I act.
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Always!
Never heard about this, wow! Gonna check that later this week.. thanks for sharing!
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Great, I'm glad for all the feedback and further information. As per the discussion above, liquidity is worth talking about.
Yeah, I never heard about it so appreciate you sharing it :) at least I can have a look if liquidity changes, the idea behind it seems good.
Thanks for sharing about LHP, i hadn't heard about it until now. It definitely solves the issue of locking up your hive for extended periods. While i don't have a lot of Hive (or HP), and i have no plans to sell any of it anyway, it's nice to know there is a way to get the benefits of HP without the long unstaking period.
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I thought it was pretty awesome when I found out about it. @cardboard is always coming up with innovative stuff here.
Thanks for the enlightenment.
You're welcome.
I never heard of this and it sounds like a winner. I'll have to get some of this soon.
Thanks for the info.
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