Content of article:
This is a copy of a post that I first made on the Hive Blockchain on 24/11/23 (link here to original post) - I aim to always post these updates on Hive first, and then here in PublishOx.
This is a post by , using an alt-account. This is an update on a tribe token experiment I started on the 10th of Nov 23. This experiment is designed to use 3 main techniques to see if its possible to grow an account fairly organically:
- Delegating tokens to tribe curation accounts,
- Via posting experiment updates in the relevant tribe accounts,
- And by using portfolio rebalancing (inspired by the XV token project from @spinvest which uses portfolio rebalancing to take profits).
You can check out the initial post that explains it all here.
Rebalance Update
This is a standard update following a rebalance of the account.
Starting Position
The table above shows the starting position for the week, the new number of tokens (before the rebalance is undertaken and spare HIVE is sold to buy more tokens). The table also shows the new token price, value and percentage weight of the tokens in the basket.
The additional tokens gained came from a combination of:
- Tips made in the comments of the previous weeks update (ALIVE),
- Tribe tokens gained from tagging the relevant tribes in the previous weeks post (using the tags; #aliveandthriving#neoxian#hive-engine
- And, tokens gained from delegation of the tribe tokens held.
In the future, when there is enough HP on the account, I will also start to delegate HP to accounts that also bring in the targeted tribe tokens.
The table below summarises the planned delegations and accounts to be used:
Having looked at the token income over the week, it looks like the cartel curation accounts are not currently working (that is the ones with '-curator' in the title). I've verified that on my main account, noticing that I havent had a payment from the @pob-curator account since the 20th of Oct. I've raised that on the cartel discord site, so hopefully that will get resolved soon.
New swap.hive to invest
As this experiment is only about the 8 noted tokens, all other income and tokens were sold for swap.hive to be re-invested in the tribe tokens. This came from:
- 50% of the previous week's post payout in HBD was sold for hive,
- All other tokens in hive-engine that are not part of the experiment were sold.
That gave new a new basket balance of:
Rebalance Calculation
The 'total value to rebalance' figure from above was then used to calculate the new number of tokens that should be held in the basket, if spread evenly across all 8 tokens - see table below. The column at the right states how many existing tokens need to be sold (if the number is negative) and how many new tokens need to be bought (if the number is positive).
If tokens need to be sold, then it means that token price has done well in the week, and the rebalance acts to effectively take profit from the gain in that token's value in the week, so that it can be used to buy more of one of the other tokens that has had poor price performance in the week (ie, to buy more tokens at a bargain price).
The table above also shows the price change in the week. As can be seen there were some fair differences, most notably PIMP going up by 31%. Its when we see nice changes like that the rebalancing should have a good effect. Unfortunately all of my PIMP was staked, so I wasnt able to release the value from that pump in the price. That is one of the draw-backs of the experiement while the total value is low (I dont have much liquid-un-staked tokens to sell each week - but that should improve over time as the value of the account grows).
Actual Rebalance
As guided by the table above, the following action was then taken:
- Sold tokens that needed to be sold,
- Bought tokens that needed to be bought.
N.B. Due to the time it takes to un-stake tokens (if needing to be sold), and the difference in buy and sell prices, it may not always be possible to rebalance the basket exactly as planned. Although in general, from week-to-week it should average out, so that it should not be too far out. As such, the following table presents the totals after undertaking the actual rebalance, with the aim of trying to get as close as possible to the planned rebalance numbers.
From there - all tokens were staked, and delegated to the noted accounts.
That completes the rebalance process for this period.
The following table presents the summary for this rebalance:
The following table presents the summary from the start of the project:
So I have to say things seemed to work out pretty well actually, even accounting for the fact that the -curator accounts dont appear to be making payments. Noting the changes in prices from this week to last week, its clear that the rebalancing method can make a different, its just a pity that I wasnt able to release some of that PIMP gain due to them all being staked (if the -curator account had paid out, it would have been a different matter, and I would have been able to sell those). However, due to having some funds from the post payout and selling other spare tokens, I was able to buy more LEO, POB and CTP as guided by the rebalancing calculation, so that part of it worked.
So far that means the following aspects are working:
- Using post payouts to help buy more of the tokens needed,
- Selling other spare tokens gained (ie, ones that are not in the target 8 tokens, eg, LOLZ, PGM, etc), to buy more of the tokens needed,
- @heartbeatonhive curation/delegation account is working for ALIVE, so thats helping,
- I did get another ALIVE tip during the week - just one at 0.1 ALIVE - so that added (it all counts !),
- The rebalance method did work as I was able to target the tokens that were the cheapest and buy those with the spare funds from the post payout and selling of other tokens,
- Adding the relevant token community tags to the post also helped as there were a number of small token payouts related to those.
But the following aspects are not working yet:
- As said the -curator accounts are not paying out - hopefully that will get resolved soon,
- I've not yet got enough HP to start delegating HP to get even more gains of the target tokens. But that will happen at some point in the future,
- I dont yet have enough un-staked-liquid tokens each week to sell when there has been a good pump in one of the target token prices. However, again, as the account grows in size and delegation/curation starts working properly, that should increase the liquid amount allowing me to better utlise the rebalancing method as planned.
So its only the second week and the second rebalance, but I was able to gain a lot more from the data this week, and on the whole it appears that it should work as planned. Again I was quite excited to do this rebalance, and again token numbers have increased, along with the overall pot value - so thats pretty interesting ! If the -curator accounts get fixed, that should bring a nice boost - heres hoping for next week !
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