26% APR returns now available on Steem!
There has been some hype recently about Tezos being the most profitable staking coin at around 7.3% per annum, but is it really?
At a blockchain level technically yes, in comparison Steem gives around 1.8% per annum currently as inflation interest on staked STEEM POWER, but in addition to this, Steem stakeholders have the opportunity to participate in a 2nd layer P2P delegation leasing marketplace, dlease.io which currently has orders pending offering up to 26.2% APR!
The average market APR is 20.91% and the market depth/availability is 104K STEEM POWER today.
I grabbed a few of these leases today and maxed out my delegations, by filling these leases you effectively get 26% + ~1.8% native interest making the returns a whopping ~27.8%, better than Tezos? I think so, but you decide!
Disclaimer: This does not constitute as financial advice, seek advice from a finance professional before investing to ensure this is right for you and your circumstance. If you have idle Steem Power doing nothing, why not?
If you like what I do, vote for @thecryptodrive witness with this vote link: https://steemit.com/~witnesses
Or use the quick SteemConnect link: https://app.steemconnect.com/sign/account-witness-vote?witness=thecryptodrive&approve=1
Oh, 26%apr is really high I must say. I can just put 22% Apr
22% is also very good I’m sure those leases will get filled now that the 26% ones are taken up.
That’s an incredible return! Although it seems I do not have enough power to delegate to most. Hopefully that won’t be an issue soon. I was wondering if there were any passive ways I could boost my income and I suppose this is a good one! I can also choose who I’m delegating to, by checking the marketplace, to ensure I’m supporting those who’s decisions I trust with said power.
Thank you for sharing! I will be checking this out very soon! :)
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I’m glad you are interested in the service and hope either some small leases become available or even better, that you grow in SP to be able to fill some bigger ones.
It's been a long time to see this good APR. This time, I will take this one.
Sweet, as did I :)
it's quite convenient to see this kind of "notification" post.
Can we consider implementing a regular posts like a "bulletin board" through a dedicated account? So, when I follow that account, i would see from my feed that how is the latest APR doing in dlease. ;)
Sure just follow my account, I'll post if anything significant happens, we are busy working on a backend for dlease so we can decouple it from Minnowbooster. Once that is done we can do fancy things like email notifications or have GINAbot notify you in Discord etc.
It is good but I prefer to keep my Steem Power instead to delegate it. ;)
At least 26% is a good return on investment.
At 26% I'm not keeping it hehe! I keep a bit for voting though.
It looks awesome!
EXCEPT . . . .
I tried to delegate but it's telling me that I have FAR less SP than I actually have.
Is it possibly because I'm powering down?
Thanks!
Yeah that's it I have the same problem, we just can't seem to get the available SP calculation correct when someone is powering down, also your Voting power has something to do with it, if you have 88% VP you can only delegate 88% of your free SP.
@thecryptodrive, I've travelled a long journey with Steem but genuinely missed this platform and Opportunity. Now definitely will look into it. Thank you so much for letting us know in a descriptive way. Stay blessed.
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Sometimes the longest journeys take you to the best destinations! Have a blessed day as well.
Very true and empowering words. Thank you so much.
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You can't find those returns in many places! Great graphics by the way!
-pf
I'm at least bullish on Steem long term, so I don't mind hoddling and getting 26%. If you sell your daily profits and keep your capital you can't really lose. Thanks the new website is looking great, we still want to do heaps more.
I noticed that, it is quite lucrative at the moment. Probably due to all these new tokens popping up wishing to create sinks and value cases. Doesn't bode well for the future, unless you're the one getting that sweet 26% return.
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Why do you reckon doesn't bode well? My take is that the lessee is taking a bet on Steem and willing to pay 26% to lease Steem Power, which increases the value and perceived value of holding Steem Power, I don't see the downside. A good indication of the growth of an economy is the size of its commercial and real estate financing order book.
It is great for the lessor, not so much for the lessee. Remeber, they also have to pay a 10% fee and don't get the Sp inflation. 28.6% per year is a tough yield to base an IRR off of for profitability.
There are lots of good business ideas, but not ones that can make 28.6% per year. Steem is 34 cents, 10k steem is a 0.1956 upvote, you get 10 a day, so say 1.956 to be generous as most won't be at exactly 100%. 10k steem costs 2860 per year to lease. 1.956*365 is 714 dollars. 714/0.34 is 2100 steem. Now remember you wil have to share some with curators and may be downvoted for so much selfishness.
I don't see why the market price went up above 21% except out of desperation or to run token based pyramid scams because the money is flowing in now and the markets are hot.
JMHO
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"I don't see why the market price went up above 21% except out of desperation or to run token based pyramid scams because the money is flowing in now and the markets are hot." - that is speculation though, we don't know what they are using it for but it could be for a central community account to support authors in their niche, or a game that needs SP for Resource Credits to issue memos and post custom json for game activities, or just a bunch of people that pooled some funds to see what it's like to be a dolphin on Steem for a month, there are lots of good usecases we could think of rather than first resorting to assuming the negative.
In any event if it attracts investors to buy Steem and power up to reap these high APR rewards, then awesome, if it causes existing Steemians to power up and lock up their stake in Steem to fill these rather than dumping into BTC then awesome again.
I can borrow money for 5% no problem, buy 10000 Steem on some exchange and transfer it to my account. Why would I borrow at 28.6%? It doesn't make sense and it is irrational. Even people with bad credit can borrow at 22%. I'm trying to wrap my head around it, but it doesn't make sense to me.
If money isn't flowing into Steem when there is 26% guaranteed returns, then it spells trouble. I don't care about SP, RC, JSONs, Games, etc. We are talking about money here, it's fungible and convertable. This is a liquid currency that isn't attracting enough long-term buyers so the internal interest rate has sky-rocketed beyond common sense.
Just saying, it doesn't bode well.
Because you get the inflation value (ie upvote power) of the leased token which is quit significant. So it has to cover normal loan cost plus loss of token inflation for the owner which goes to the person taking the loan and holding the steem.
You are forgetting the main use case for Steem Power, that is to get resource credits to transact on the Steem chain, create accounts, etc.
There is more than only "upvotes" to Seem
True, but that was also true when the APR on lease was 14%. I'm trying to think why it's so high, are we in junk bond status?
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Actually it is around 20% for a long while. Now that Steem is cheaper it is cheaper for outsiders to lease Steem Power to have influence on the platform.
Hopefully the external market will realise this and flow money into Steem, I think the risk with borrowing in fiat is you owe it back in fiat so if Steem drops to 1/3 of it's value you are in a spot of trouble, with Steem Power leasing you aren't borrowing capital you are borrowing a delegation which gives you the same utility as if you had the capital, but leased at a fraction of the cost. This is more like leasing a car via AVIS than buying a car with a bank loan, not sure if that is a better way of putting it.
Basically it is the difference between having to pay capital and interest repayments vs only interest repayments (which is actually a fixed lease fee) and not being on the hook to repay the capital.
Also less paperwork and KYC.
"I think the risk with borrowing in fiat is you owe it back in fiat so if Steem drops to 1/3 of it's value you are in a spot of trouble"
And there you have it. All the other reasons where there when delegations were paying less than 20%. Perceived future value is why people aren't buying Steem with other currencies and getting 26%.
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Mostly people are bullish on BTC I agree, and dumping alts to ride the btc wave.
Yeah, I've noticed that. That's why I couldn't get a lease myself, despite offering close to 21% APR :D
Are you trying to get a lease filled Daan? You can try again, the market was cleared out right down to 22%.
Yeah I was, I'll try again when the rates are a bit lower again. Maybe I'll just offer a lower rate and promote my lease request via a Steem post. That seemed to work very well for me in the past. Some people only want to lease SP to authors they know and trust.
That’s actually very smart, you should do a post teaching others to do the same. Let me know when you post i’ll vote it.
Finally got to making that post @thecryptodrive
https://steemit.com/dlease/@daan/how-to-get-you-dlease-requests-filled-quickly
Nice one, I checked it out!
Will do!
Hi @daan, there are fewer leases on the market now so it might be a good time to place your order. Also leases are now clickable on the market to obtain a direct link that you can promote on your posts, here is an example of one: https://dlease.io/open-request/44815
26% is a pretty impressive return, I'll need to start upping my stakes at these low prices and try to fill up some orders
That will be awesome so many people want leases, you will be helping them if you do. I personally manage to maintain a lease average of 20%, I’m quite happy with that.