Updated: Nov 4, 2022
The Icosa staking platform launched on August 14th, allowing users to mint and stake Icosa, stake Hedron that they minted for free from Hex stakes or bought and Mint a We Are All the Source Address NFT over a 14 day mint phase that is still on-going. All these pools get the same amount of ICSA per day based on the share of the pool they have, but the Icosa staking pool also gets Hedron as additional yield.
Since launching, approximately 3510+ HSI’s have been sold to the Icosa smart contract to mint ICSA. All these HSI were advanced against by the smart contract and will begin being liquidated on day 90, which means you and I will have the opportunity to bid on these stakes and buy them using Hedron tokens.
Before we go any further though I want to remind you of the ways that Both Hedron and ICSA enter staking pools as yield. ICSA is generated as yield through the amount of Hedron burned the previous day, divided by the Hex Tshare rate, divided by 10. Each pool gets this number of ICSA sent to it. Another way ICSA is sent to the pools is through early end stake penalties. Hedron yield which is unique to only the Icosa staking pool, is calculated as 50% of the Hedron burned in the previous day. Early end stake penalties also contribute to this yield as well. For a more in-depth analysis, watch my series “Hedron the sleeping Giant”: https://youtu.be/hqlpC_Smsbo .
Now that were on the same page in regard to the yield, it’s time we talk about day 91; potentially one of the biggest days for yield that we could ever see on the Icosa staking platform.
Like I previously mentioned, there will be approximately 3300 HSI’s and counting that will go up for auction on and after day 91 post Icosa launch. Currently, the amount of Hedron it takes to make the minimum bid on a 5555 HSI in auction is around 34-35x less than the price of the actual Hex stake itself. This has staggering implications for the yield on day 90. I will do a video on how to bid on one of these HSI’s soon.
With 3510+ auctions happening that can be purchased for less than what the stake is worth all while spending 30+ times more Hedron than is needed, we could see a staggering amount of Hedron burned on these days. The minimum starting bid for a 137 Bshare HSI is 794,428 Hedron tokens, but the actual number of tokens it would take to equal the same value of the HSI is 27,311,111. Yes, 0.137 of a Tshare could burn as much as 27 million Hedron before it no longer makes sense to bid. (This is all based on August 18th prices of both Hedron and Hex, but this number will fluctuate as prices move closer or further away relative to one another)
Here’s where things get crazy though. The amount of large HSI’s staked for 15 years during day 1, 2, 3, and 4 of Icosa, was staggering. Of the HSI’s sent to the smart contract, there are 31,160 T-Shares staked for 5555 alone. There are 3510 HSI’s going to auction and counting as of the time of writing.
Based on all the HSI’s sent to the Icosa Smart contract as of 10:07 on August 18th, the minimum amount of Hedron that will be burned approximately is 174,883,000,000. This number will only be valid if all HSI’s are bought for their starting minimum bid price. The problem here is that 174.883Billion Hedron is 35 times less than the value of all of the HEX stakes as of the time of writing. If bidders pay in Hedron the equal dollar amount to what each HSI is worth, then the total amount of Hedron burned will be approximately 6.115589 Trillion tokens. Now, this Maximum amount will fluctuate and be different on November 15,16,17 & 18th based on the spread in price between Hedron and hex. If Hedron goes down in value relative to Hex’s price, the maximum amount of Hedron to be burned would go up. Again, this is based on the point where the amount of Hedron burned is equal to the cost of the stake. If, the Hedron price increases relative to the Hex price, then the Maximum amount of Hedron Tokens that would be burned would be less than the 6.115589 trillion, assuming users won’t bid more than the value of the HSI.
What we cannot account for is Hedron holders with enormous amounts bidding more Hedron than the stake is worth. If whales and sharks, the two largest tokens holder tiers, decide to do this then we could see even more than whatever the Maximum point is.
If the minimum threshold is hit only, approximately 753,956 Icosa will be sent to each pool as yield and 85 Billion Hedron tokens will be sent to the Icosa pool. If the maximum is hit as of the time of writing, 26,539,285 Icosa would be sent to each pool as yield and approximately 3.77 trillion Hedron would be sent to the Icosa pool as yield. Currently, there is a little more than 41,000 Icosa entering the pools daily which is giving the yield we currently see in the pools. What I’m not trying to tell you, is exactly how much the yield will be on day 91-95, this is purely speculative and for fun; but what I am trying to tell you, is that it will be significant in comparison to any day up to that point and possibly afterwards. Do your own research before making any decisions because this is not financial advice, but I needed to share this with you so that if you agree with my analysis, you will be able to reap the rewards too if it is correct. This is simply what the data is pointing towards. This just might be a “Big Pay Day” like event for Icosa platform stakers.
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