BYT Backs: Reward Distribution of 45% APR for 27 December 2021

The reward payouts this week have a headline rate of 26.5% APR, and the yield at par price of 1 HIVE is 45.7% APR.

The actual distribution has decreased a little from 194.0 to 179.0 SWAP.HIVE.

BYT token holders will see their rewards in their SWAP.HIVE account - not in their BYT holdings.

The Numbers

This week:

SWAP.HIVE per 100 BYT Payout = 0.879

BYT Headline Yield at ABV = 26.5% APR
BYT Yield in BLURT = 28.2% APR
BYT Yield at par 1 HIVE price = 45.7%

BYT Program Total = 1,561,000 BLURT equivalent
HIVE/BLURT Rate = 45 BLURT per HIVE

BYT ABV = 1.73 HIVE (2.93 USD)

Read this for further explanantions of how the metrics are calculated.

Insights

Distribution has dropped a touch, but still a healthy 0.879 HIVE per BYT. The ABV continues to rise to about 1.73. Looking at the current volatility in the BLURT and HIVE prices, I expect this to ease off a bit next week.

My concern remains that BYT holders are unable to realise their capital profit if they so choose. Hence I shall continue to raise the BYT sell price and also nudge up the buyback price. If ever the ABV were to drop sharply, then I can just insert some fresh price-points - there are plenty of tokens in reserve so we are nowhere near the 100k supply. As I said last week, there is nothing magical about the chosen pricing, it seemed reasonable at launch - we have been lucky in that the BLURT value has increased significantly since the BYT launch. Sadly, the market is not liquid enough to take full advantage of this; instead profits are within the yield rather than the token price.

Worth reading last week's post for a longer discussion on these issues, as I don't really wish to repeat them here for those who have already read those thoughts.

For the first time since launch, BYT has had to dip into its BLURT holdings to pay the distribution. This is normal, as profits come largely from the Blurt chain and should be of no concern to BYT holders. Whether the HIVE profits come from new token sales or from our capital makes no real difference to earnings, as in both cases those funds need to be liquid and non-earning. This is less than 1% of the fund, hence the effect is minimal.

One thing that strikes me about doing payouts on Sunday night/Monday morning is that it is often a period of high price volatility due to the "weekend traders" who enjoy messing with the prices during low volume and while the derivatives markets are closed. Once we decide whether to keep the BYT program going beyond February, I may change this to a Tuesday or Wednesday.

Keep safe!

Buy BLURT on Probit, Ionomy, Hive-Engine and STEX.

Buy BYT on Hive-Engine