This is a copy of a post that I first made on the Hive Blockchain on 08/01/24 (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 a number of techniques to see if its possible to grow an account fairly organically, including:
- Delegating tokens to tribe curation accounts,
- Delegating HP to curation accounts that provide drips in the target tribe tokens,
- 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 this rebalance, 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 rebalance post (0.1 ALIVE !),
- Tribe tokens gained from tagging the relevant tribes in the previous rebalance post (using the tags; #aliveandthriving#neoxian#hive-engine) - but nothing major to speak off for this period,
- 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.
As can be seen in the table above, the basket value has fallen since the last rebalance due to the price of some of the tokens falling in value. However, it was still good to see that there were gains in the number of tokens across all 8, before entering into the rebalance calculation.
The table below summarises the planned delegations and accounts to be used:
All 8 token delegation accounts used paid out since the last rebalance - thats the first time its happened, which was great to see.
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. The price of HIVE was low which gave a good conversion price from HBD which was good, but the post payout was very low - the second lowest since the start of the experiment, which aint great,
- Normally I would also sell all other tokens in hive-engine that are not part of the experiment, but there was nothing really to sell for this rebalance.
That gave 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 titled 'difference from above' 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 period, and the rebalance acts to effectively take profit from the gain in that token's value in the period, so that it can be used to buy more of one of the other tokens that has had poor price performance in the period (ie, to buy more tokens at a bargain price).
The table above also shows the price change in the period. As can be seen 8 of the 5 tokens in the basket had dropped in value (just like last week), creating an overall drop in the basket value. However, I was able to sell a few small amounts from the tokens that had increased in value, and was also able to buy NEOXAG at a discount price, so the rebalance did have an effect (although not massive).
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 (and that certainly was the case again in this period). Although over time it will average out, so that it should not be too far out. And as the curation income grows, so too will the liquid amounts available each period, at which point the rebalancing will work better. 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.
As can be seen, the only changes to speak of were in CTP (mostly from curation payout) and NEOXAG (from the purchase during the basket rebalance).
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 it wasnt a great week really. The last rebalance post had a poor payout, and the value of a number of tokens dropped such that the overall value of the basket dropped. However, the rebalance method still worked to some extent, even if fairly minor.
The table above attempts to summarise how the various methods have worked in the period, and rank them in order from best to worst (top to bottom). Its hard to capture the exact values from each method making a contribution, but it gives a rough idea of how its all working.
The post payout in HIVE dominated again this week, even with its very low value, followed by the rebalance method. Otherwise there wasnt much else to speak of apart from all 8 curation accounts paying out.
So thats the second loss in a row. This is to be expected and its also how the rebalance method works, as long as there is enough funds to purchase tokens at a discount when the price drops are occurring, which has been the case in these last 2 rebalances - so thats ok. As long as the total number of tokens keeps increasing, which it is, then its going in the right direction (there were no decreases in the amounts of tokens in this rebalance, all increased except LEO which stayed the same).
That wraps up this rebalance. Heres looking forward to the next rebalance already !
If you are interested in the Hive Blockchain you can sign up using Inleo/Leofinance
