LABFUND six month anniversary review

As I keep downplaying LABFUND and continue to say that I won't make anymore posts about it, here I will make an official post with all the back links about this adventure. Its actually not quite six months yet from November 10th, from when I realized an opportunity to reach possible 200% aprs, set up the token and pitched it in the Dragon's Den.

It was a small package, just 10,000 HIVE raised, and we did indeed sell out.

Original Offer
Only 4k left!
Sell out
0.28 HIVE rebate

After selling out, we actually engaged a 0.28 HIVE rebate to all participants, lowering their exposure to just 0.72 HIVE per LABFUND. This defensive move was more to keep the numbers hot, I know that proper management is about portion control. While it is always tempting to push into diminishing returns territory, because there are still positive returns, I think we struck a good balance with this fund, judging on the (now current) future results.

The first thing we did was release a dividend of ARMERO token, a separate tokenized dCity using a different strategy. More on that in other posts.

2 ARMERO div per LABFUND

After the major first dividend, we allowed investors access to the freshest new shiny NFTs, our Super Soldiers, Citizens, Cops and Criminals.

We closed that claim and shortly after issued another dividend, and then another after that:

0.5 ARMERO per LABFUND drop Feb 7th
0.2 ARMERO per LABFUND drop Apr 4th

So maybe now is a good time to consider some numbers, at this six month mark. How are we doing?

ARMERO valuation

Without talking about ARMERO token, since the complete dividends, 2.7 ARMERO tokens, are in this sim-bond token form, some consideration of its value will have to be done to calculate APR. I am happy to report that my napkin calculations of the ARMERO token ABV are continuously in the 0.3-0.33 HIVE per ARMERO range, much higher than the 0.25 placeholder that we originally used.

A note here, some of this 'value spread', or variation in value is normal, as price is a way to adjust risk, and this whole scheme has SIM price currency risk attached to it.

If we use a 0.3 valuation for ARMERO, we get 0.81, and we can say with some confidence that all LABFUND holders have fully gotten their money back and everything should be profit from this point on.

A further division of the 0.72 HIVE per LABFUND exposure show this to be a 112.5% return on the investment from just 6 months ago.

But as LABFUND has been quietly consolidating its position, there are only 6922 tokens left in circulation, giving LABFUND itself an asset backed value of 1.2-1.3 HIVE per token.

Which means we are actually ahead of the game to continuing to deliver 200% aprs, possibly for the rest of the year or longer.

Why have you been talking about winding down then?

Consolidation is a slow thing, and I should be clear, I will keep @superlab alive for much longer. But I no longer see where the return will be coming from. Just the other day we picked up over 300 citizen on bids, and have been slowly experimenting on them with daily SIM income, so far we have 2 new Super Soldiers! If that would happen every week, we are still in the game.

But its not guaranteed, its a crap-shoot, and there is nothing wrong with slowly taking money off the table - that's all I am saying. @superlab will continue balancing its income between buying back LABFUND and bidding on more citizens and experimenting on the ones we do get.

Right now we have no ARMERO in the pipeline, all the sick citizens we have on @superlab are being used to maintain our INCOME ranking, where we currently rank 7th and earn 1.558 HIVE per day.

The other area we rank well in is War Shares, which are not getting a ton of income each day now with 0% war tax, but are getting some from the Lobby effect. We hold 9.7% of the War Shares pool on @superlab:

Time will march on, and it is likely on our side. dCity modern is around the corner, a lot of new updates that will continue to make the game interesting.

But I do want to be clear, the cutting edge has waned, and there is nothing wrong with realizing profits. For anyone wanting to lower there exposure to LABFUND at this point, set a sell order on the market.

Freedom and Friendship