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RE: How Tokenized TSLA (TTSLA) Works on LeoDex
A). Lack of success? That’s quite funny. SURGE presale buyers are up 50% in Hive Terms and 10%-20% in USD terms. This is in 2 weeks of the presale being sold out. The SURGE price continues to magnetize toward $1+ and as it continues to trend this way, I will continue to laugh at people who say this is failed. This is 100% expected and actually talked about as the presale was ending. Early flippers will take a profit and exit as it magnetizes toward normal price action.
Perhaps you’re impatient and think it should’ve given a bigger 200% or 500% return in 1 day? I just find this sentiment funny and factually innaccurate. Feel free to prove me wrong.
B). You saying it’s an asset with similar mechanics shows me you haven’t spent any time reading about it. I recommend taking some time to do so. It’s an RWA and has completely different peg mechanics. It couldn’t be more different. Launching another asset means increasing the fund’s long-term profitability while foregoing short-term profit-taking. It’s actually the opposite of what you just said.
C). They put out an intro post, a docs post and then a FAQ post specifically about yield because they saw questions about it. Along with 25+ threads a day.
Point me to these unanswered questions. I have yet to see them.
Haha, now you're being funny.
SURGE has been advertised as having a $1 "floor price" (not my words, actually quoting). Now it's at $0.8, which is indeed expected, but you can't deny that the market obviously isn't buying the $1 peg, the liquidation preference or whatever you wanna call it.
Now you're claiming TTSLA being an RWA. Tbh it's got nothing to do with an RWA, it's actually backed by LEO (just like SURGE) through a liquidation preference (just like SURGE) and pays out regular yield (just like SURGE). Not sure why you're saying it's totally different, but it's got nothing to do with the underlying asset except for trying to maintain a price that's similar (more like an index than an RWA).
So just like with SURGE, the market will discount TTSLA against TSLA since there is no arbitrage (you can't redeem TTSLA for any other asset and buy TSLA with it) and the peg mechanism relies on the very same aspects that SURGE uses , so TTSLA will continuously pay max yield, putting a strain on LeoStrategy's P/L.
I'm a holder of both $LEO (quite a lot, actually) and $LSTR (and a tiny few SURGE), so I want those to succeed, I just don't think that TTSLA is the way to go, so I'm sharing my concerns in the public as it should be.
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