Trying Something Different - Hive Leasing

I had never really noticed the menu option on Hive Engine that provided the opportunity to Lease out your assets. It has probably been there for years but for some reasons today it caught my eye and I thought that I would check it out.

Nice APR available

As I am looking over what there is to off I noticed there are offerings of both Hive Power and BEE for lease. The highest APR offered is 15.01% but it appears that someone is in the process of leasing that Hive Power out as I was taking this screen shot.

There were also quite a few offerings with an APR of 11.01%. I believe this is a very good APR.

My Current Hive Power Curation APR

This APR offering made me start wondering what my curation APR was on my Hive Power so I went and pulled this stat up on Hive Stats

https://hivestats.io/@darmst5339

I am currently receiving 7.75% APR from curating posts and comments. I was thinking that I was receiving a slightly higher APR on my Hive Power but still less than 9% APR. Leasing my Hive Power out would probably provide me about 3 points higher return.

Decision Point

So I need to consider if I am willing to lease out my Hive Power for a greater return. It looks like I could test the water on one of those shorter time period leases which would tie up my Hive Power for about 3 to 4 weeks.

I think I am willing to take the chance knowing and trusting the Hive Engine system to make payouts and the Hive system to protect my Hive Power. I have worked very hard to accumulate my Hive Power to this level that I am a little nervous about leasing it out but my understanding is that it is just a Hive Power delegation that I receive a payout to make. In that case, it should be a very safe transaction with very little risk.

Took Action

I was ready to lease out at the 11.02% APR but notice the top lease offer of 15.01% was back available so I grabbed that one to take advantage of the additional 4 percentage points of return.

I leased out 1000 HP to @panosdada.tip for the offered return of 15.01% APR fpr a time period of 4 weeks. I should receive 0.53857142 Swap.Hive per day for a total of 15.08 Swap.Hive over the 4 week period.

Lease Payment in Swap.Hive

I guess this part did not enter my thoughts about how I was to receive the lease payment until after I had already made the Lease. I will be receiving the Swap.Hive on a daily basis into my Hive Engine wallet.

Thinking about moving these lease payments back into my Hive wallet and staking the amount into Hive Power made me think about the small fee this would cost. I went to the Hive Engine site so that I could calculate how much the fee would total.

Based on the estimated amount that I would receive if I decided to move the amount to my Hive wallet, it would cost me 0.114 Swap.Hive (15.08 less 14.966). The fee is very, very small compared to the additional APR I would receive from leasing versus my current curation APR.

Time will tell if I made a smart decision. If so, I may continue as this does support others on the Hive platform.