Introducing ACE | Overcollateralized Stablecoin With +20% APR Yield Boosts and Lending
For months the LeoStrategy team has been working on a handful of projects simultaneously. Three of them are synergistic and required one for the other. These 3 projects will forever change the way you use the $LEO token economy:
- App - The LeoStrategy Command Center (launched yesterday) -> https://leostrategy.io
- ACE - Overcollateralized Stablecoin (launching right now) -> https://leostrategy.io/ace
- Lending -> Collateralize Your LEO for Onchain Stablecoin Loans (launching with ACE) -> https://leostrategy.io/ace
TLDR; Links:
LeoStrategy Command Center is Now LIVE
ICYMI we launched the LeoStrategy Command Center which lets you track, manage and analyze the entire LEO & LeoStrategy economy.
There is a lot to digest, so head over and discover each page for yourself -> https://leostrategy.io.
Introducing Ace
Today, we couldn't be more proud as we unveil ACE which is the massive key part of our 10M/10M plan to accumulate 10M $LEO on our balance sheet.
Today, LeoStrategy holds ~5M LEO on our balance sheet. We have been steadily accumulating LEO. Large raises like LSTR and SURGE (and next with ACE) have led to large and fast accumulation of LEO which led to a rapid price increase for the LEO Token. Smaller raises (TTSLA, TGLD, TNVDA) allowed us to accumulate consistently as we built our app, treasury and launched the RWA model which allows us to tokenize Real-World Assets and profitably launch them onchain with our Market Maker model.
What is ACE?
ACE is an onchain, overcollateralized stablecoin. It is a key part of our LEO Lending model (more on this later).
How is it Stable?
ACE's design is inspired by DAI which is the stablecoin used by the Sky DeFi lending protocol. One of the oldest decentralized algo-stablecoins on the planet.
ACE uses a similar "PSM" model to govern the stablecoin's 1 ACE = $1 peg. PSM stands for Peg Stability Module and once ACE is live, anyone can use the PSM to convert ACE to USDC (or HBD) or USDC (or HBD) to ACE.
This two way conversion mechanism creates tight pegging rules for ACE. The conversion fee is 2% and this 2% conversion fee is kept by the LeoStrategy PSM Treasury. This is considered treasury income and increases the health of the entire system by taking more ACE off the market and burning it.
For example, if ACE trades below $0.98 in the open market, anyone is incentivized to:1
- Buy ACE
- Use PSM swap to sell ACE for USDC or HBD (1 ACE always = 0.98 USDC or HBD)
- Instantly receive a profit paid as USDC or HBD
How is it Different Than SURGE?
SURGE is an onchain bond which represents a bet on the future price of LSTR. As LSTR rises, the SURGE price rises. SURGE has a liquidation preference of $1 but it is not a stable valuation coin. Meaning: SURGE is intended to have this liquidation preference in the event of LeoStrategy dissolving but it does not have a conversion mechanism to create a hard peg to this value.
ACE is different as you can use the PSM to instantly convert to/from stablecoins. This same PSM setup is used on DAI and has been successfully used for many years on one of the largest DeFi platforms on the planet.
The PSM creates a market environment where ACE is always +/- $0.02 with $1 per ACE.
If ACE trades over $1.02, then you should swap USDC (HBD) for ACE, then sell the ACE for USDC (HBD) and make an instant profit.
If ACE trades below $0.98, then you should buy ACE and convert it to USDC (HBD) using the PSM on https://leostrategy.io/ace.
What is the Primary Use Case of ACE?
The primary use cases of ACE:
- LEO Collateralized Lending
- Liquidity for all LEO & LeoStrategy Assets
ACE is designed similarly to DAI which is utilized for collateralized lending on WBTC, ETH, etc.
When ACE is out of presale, you will be able to deposit LEO and receive ACE as a collateralized loan. You can then convert ACE to stablecoins to use for whatever you want (or LP it for yield). When you are done with the loan, pay back ACE to the Lending Vault and receive your LEO back.
ACE will also become the premiere liquidity asset for the entire LEO & LeoStrategy economy. ACE will become the #1 LP'd asset for:
- LEO
- LSTR
- SURGE
- TTSLA, TGLD & TNVDA
ACE will become a liquidity layer that ties all liquidity pools together and allows more cross-chain arbitrage to occur across the pools (while enabling cheaper swaps for users). This massive liquidity is important for ACE as it must be extremely easy to buy/sell/trade for the health of the LEO Lending Protocol.
LEO Lending
As mentioned above, LEO Lending is the primary use case of ACE. This post is intended to introduce ACE and we will keep the focus on the token itself however it's worth mentioning some key stats about LEO Lending (which is enabled by the launch of ACE)
- ACE is used as the settlement asset for LEO Lending - giving it immediate utility in the Lending economy
- When a loan is originated, a small origination fee + daily accrual of APR Interest occurs on any Lending Vault. This APR is 8% (unless you buy the presale and lock-in lower rates)
- Liquidation is autonomously handled onchain via Oracles and a 24hr moving average price feed
- When a user closes a lending vault, they must buy ACE and deposit it (along with accrued interest) in order to retrieve their original LEO position (giving ACE continual demand)
Presale Benefits
If you buy the ACE Presale, you'll unlock 4 major benefits:
- Higher Lending Cap
- Exclusive 20% APR (Paid Weekly)
- Lower Borrowing Fees
- Early Feature Access
Explore these benefits by going to https://leostrategy.io/ace and clicking on each Diamond tile.
PSM Reserves and LEO Buying
555,555.555 ACE is available in this presale at a price of $0.90 per ACE. This price will be dynamically adjusted throughout the presale to maintain the $0.90 presale price.
The proceeds will be split 50/50:
- 50% to build the PSM Reserves in both USDC & HBD
- 50% to immediately purchase $LEO and perma-stake it on the LeoStrategy balance sheet
PSM allows users to convert ACE into USDC (HBD) or USDC (HBD) into ACE. The PSM is effectively a built-in conversion mechanism that maintains the hard peg of $0.98 - $1.02 USD per ACE.
To seed the liquidity in PSM, 50% of the presale will be held in the PSM Treasury wallet as HBD / USDC stablecoins. The PSM will HODL this capital as seed liquidity in the:
- ACE-USDC Liquidity Pool (Base)
- ACE-SWAP.HBD Liquidity Pool (Hive-Engine)
When a user converts ACE (or vice versa) it is pulled from #1 first and #2 second and sent to the user:
- From liquid reserves
- From the LP Position (if no liquid reserves are available)
This allows the PSM to productively use the capital as seed liquidity, earn LP Fee Revenue and maintain liquid stablecoins to conduct PSM conversions.
All of the above are profitable operations for the PSM:
- PSM Conversions: When someone converts, the PSM earns a 2% fee on each conversion
- Open Market Trading: Any unused capital for conversions is LP'd and earning LP Yield every time open market swaps occur
LeoStrategy as an operative project then earns additional profits by Market Making all the ACE-based Liquidity Pools (which has a dual impact of driving up LP Earnings by the PSM).
Increased trading, conversion activity and swaps leads to increased Market Maker Profits for LeoStrategy which leads to additional $LEO Purchases and therefore; greater over-collateralization of LEO on LeoStrategy's Balance Sheet.
The $250k portion of raised capital (100% of which will go to purchasing LEO) will be used to immediately buy LEO as it is raised. At the current LEO price, this will buy ~5,000,000 LEO and add it to LeoStrategy's perma-stake treasury. In the past, when we have raised signficant capital like this, the LEO price has increased signficantly. Even if our average purchase price is $0.10, that would still be 2.5M LEO added to our balance sheet.
Any LEO added to our balance sheet both from the raise and from ongoing Market Maker profits will lead to increased overcollateralization of ACE (more health for all LeoStrategy products which are cross-collateralized by our balance sheet).
ACE is Robustly Overcollateralized
Run all the math on ACE and you will see that it is:
- Robustly overcollateralized
- Gains health (becomes more overcollateralized) as time passes
- Generates ongoing profits for PSM Treasury
- Generates ongoing profits for LeoStrategy's daily LEO accumulation
The ACE economy generates massive inflows from:
- Market Maker profits (every cross-chain LP & Order Book is market made by LeoStrategy's MM)
- PSM Conversions (2% earned on each PSM swap)
- 8% APR on LEO Collateralized Lending
ACE is a Revolution in Onchain Finance
ACE is the revolution we have all waited for in the LEO Economy. Many of us have wanted LEO Loans for years. Ever since the LEO Team originally teased the idea years ago.
Collateralized Lending on LEO has officially arrived. With ACE, we have created an economy where this is not only possible but it is profitable. As with all LeoStrategy operations, 100% of the profits flow to purchasing $LEO and perma-staking it on our balance sheet. Every LEO we buy off the market will never return to the market. Every LEO added to our balance sheet over-collateralizes ACE and all of the other LeoStrategy Suite products.
Join us on this journey of democratizing financial knowledge and access (the true LEO Mission statement!) as a 2nd layer economy building on LEO.
nothing on this page or related to LeoStrategy should be viewed as Financial advice. All is for entertainment purposes only. DYOR.
You can find all the presale details, live calculator and live stats tracker on https://leostrategy.io/ace. You can also enter your username to see your presale tier status and the benefits you've unlocked.
please give the UI a few hours to update with live data.
How to Buy ACE
You can now buy ACE in two ways:
- On TribalDEX (or any Hive-Engine interface) -> https://tribaldex.com/trade/ACE
- By directly sending HIVE / HBD to @leostrategy (great option for those who don't want to route through swap.hive)
Option 1 is instant as it is from the market and option 2 is manual (ACE sent within 24 hours of receiving)
Posted Using INLEO
Yes! I have been asking that question about HIVE for the past few years.
Will the lending modules and vaultes, etc, be available on HIVE, or BASE or both?
I'm sure there will be more questions from LBI, but that is first.
Congratulations on bringing this to market, looking forward to the full range of options being live.
Now I have to scratch around our wallets to find some funds...
Happy to answer all of the questions you come up with. It’s also great for expanding the knowledge base
Yes, lending will be available on both HE & Base as will the PSM Conversions (hard-pegging ACE to $1).
The LeoStrategy.io/ace page shows some of these mechanics toward the bottom (where a placeholder shows HBD & USDC reserves side by side).
Thank you! We believe this will be a dramatic turning point for LEO. A stablecoin that is native to the economy will increase activity around the entire economy + enhance liquidity in all the LPs
Any chance of an ACE/LBI pool being added to this list? We will set one up regardless, but would love a collaboration on it?
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I'm sure someone has probably already mentioned this, but the chart on the LEO price is screwed up. It's got the January dates on the left and then once it hits the current date, it switches back to the December dates. The chart then ends with the Dec 31st price on the right side of the chart. Just thought I'd point it out.
Could you have put in a peg mechanism for SURGE and used that instead of launching ACE? It felt like you already had an asset priced overcollateralized at $1 you could have chosen to use and issue new tokens but chose again to launch another one instead of trying to make an effort to get SURGE to function like a representation of $1 of value.
The short summary of the difference between ACE and SURGE is that you will try to keep ACE at $1 but won't try for SURGE?
I would suggest if you are making profit from arbitrage, trading and so forth to use a portion of it to buy back some of the assets SURGE/RWAs to reduce the future liabilities of leostrategy and get prices closer to where the target prices should be. so that would mean that current holders could be more confident in yield continuing for longer term because the overall liability of yield will decrease if you take some of the assets off the market. We will likely never be able to sell for close to $1 so the continuation of the yield is how we can expect to get our capital back. anything you can do to support the continuation of yield will help our confidence.
Or it could be nice to allow even in a limited fashion 1:1 conversion from Ace to Surge. My 2 cents, I am a bit disappointed that SURGE is falling by the wayside and you are launching another version of a $1 token that most likely will price better than SURGE.
It's a bit like launching "TTSLA2" and saying it will be a better version of a TTSLA instead of trying to improve TTSLA. it's a bit odd.
I get your frustration but you need to not think of SURGE as a stablecoin. This was mentioned in detail both in the early posts of SURGE and reiterated above here.
SURGE is like a fixed income bond. It operates completely different than a stable-pegged asset. You can’t redeem SURGE at $1 nor keep it at $1 because then you would be changing the principle mechanic of the token (the convertibility to LSTR).
The convertibility to LSTR gives SURGE uncapped upside. As LSTR rises in value (tied to the simultaneous increasing of LEO Per Share + LEO price rising), SURGE becomes infinitely more valuable. There is no upside cap on it.
Eventually, people will be converting their SURGE for $2, $6, even $10+ per SURGE. This is not how a long-term stable token can function.
Long story short, no we couldn’t do that.
Better story: we already solved this with the sRWAs and the RCBF. Not sure if you’ve been following the RCBF, but it has already created tighter correlations for TTSLA, TGLD, TNVDA. We are considering if this can be added for SURGE without taking away from the conversion capacity.
SURGE should have been launched with long-term staking requirements. Much like a 30yr treasury note — you looking at the day-to-day fluctuations isn’t the point of the token. The token pays you yield every week simply for HODLing. That’s how the bond aspect works.
SURGE has a $1 liquidation preference. This does not mean it is a stablecoin worth $1 in the market.
We could have chosen $0.50 or $10 as this liquidation preference. Choosing $1 was somewhat of a mistake on our part as it caused people to think of SURGE as a stablecoin and not a bond.
Irregardless, one day soon SURGE will trade well over its liquidation preference and people will finally realize the difference between a bond and a stablecoin.
ACE has extremely unique properties and I suggest looking at https://leostrategy.io/ace to learn more (mint/redeem functionality for lending, etc.). Surge has none of such properties and comparing the two is apples & oranges (or like comparing 30yr treasuries to USD)
This is very well explained.
I think the part that has confused most people is the "floor price" part when it comes to SURGE.
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STOPSURGE as a convertible bond is confusing many. Buying surge is like being paid weekly to bet on the success of leostrategy and in turn the LSTR token which is a bet on LEO and LEO is increasingly becoming a scarce asset through all of these updates. Perhaps people need to understand historical performance of LSTR token which is see where SURGE is going.
to see where surge is going*
Yes exactly. SURGE is a convertible bond paying weekly yield. Over $20,000 has been paid to SURGE holders while they HODL for upside as LSTR grows in value.
@askrafiki is a great resource for them to understand the difference between a bond and a stablecoin. They are extremely different
Bond vs. Stablecoin in LeoStrategy
Bond (SURGE): A fixed-income instrument like a convertible bond. Holders receive weekly dividends ($0.15 per SURGE annually, ~15% APR at $1 price, higher if bought below). It provides income while betting on upside—convertible to LSTR (50:1 ratio) as LeoStrategy grows via LEO accumulation. Backed by LEO collateral with a $1 liquidation preference in dissolution. Over $20K paid out historically, rewarding HODLers during volatility.
Stablecoin (ACE): An overcollateralized, pegged asset targeting $1 value via Peg Stability Module (PSM). Swap ACE for USDC/HBD (or vice versa) at 2% fee, ensuring tight peg (±$0.02). No yield; focus on stability for lending (e.g., collateralize LEO for ACE loans) and liquidity across LEO ecosystem pools. Fees burn ACE, supporting peg. Inspired by DAI, but tied to LEO economy for seamless DeFi use.
Key difference: SURGE yields income + equity potential; ACE maintains value for borrowing/trading without interest. For deeper dives, check LeoStrategy posts on these.
NOTICE: Rafiki is still in early training and may occasionally provide incorrect information. Please report errors using #feedback
Personally if RCBF can be applied to surge to give it a tighter grip(wink) fine, if not, fine as well, it won’t really matter in the long run as I see LSTR doubling in price soon, the effect of that on surge is what I’ll like to see.
SURGE doesn't necessarily have the best fit for the RCBF as it already has a conversion feature. The main issue is people want instant gratifitcation as opposed to the bond-like features they signed up for
With SURGE, it's weekly yield while you wait for LSTR to perform. This is how it is intended to work. We are considering a buffet of options although simply waiting is also a "cure" for SURGE since it was always designed as a long-term yield asset
We're considering adding a staking element to SURGE to drive home this point
#askleo how long does the 20% APR last?
The 20% APR is an exclusive presale benefit for ACE buyers, paid weekly, but its exact duration isn't specified in the launch details—it's tied to unlocking benefits like higher lending caps and lower fees while you hold ACE. Check https://leostrategy.io/ace for your tier and live calculator to see personalized terms.
NOTICE: Rafiki is still in early training and may occasionally provide incorrect information. Please report errors using #feedback
My goodness this sounds scammy AF.
#askleo when do the #presale ends?
The ACE presale for LeoStrategy is ongoing as of today—no fixed end date announced in the launch details. It offers 555,555.555 ACE at $0.90 each, with proceeds split to build PSM reserves and buy/stake LEO. Check https://leostrategy.io/ace for live stats and your tier.
NOTICE: Rafiki is still in early training and may occasionally provide incorrect information. Please report errors using #feedback
What if - the conversion commission and the interests on loans won't cover enough to pay out 20% APR?
These Leo offers won’t end well..
That's what they said about Bitcoin. LEO obviously isn't today's Bitcoin, but everything started somewhere. Apple, IBM, Microsoft, Nvidia, they all started as a small idea that 99% of the world said would fail.
In my mind, these type of comments "won't end well". And you could have bought as much as you wanted at 5 cents....
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LeoStrategy is a separate team from LEO.
The “offers” are rooted in mathematical fact. If they don’t sit well with you, we recommend not getting involved. You are very welcome to watch and we hope you at least get entertainment value from doing so.
Good question
These are only 2 sources of inflows. The biggest is our Market Makers. For every asset, there are two market makers:
On other assets, both generate excess inflows beyond yield obligations.
ACE builds upon this and takes it a level deeper since it is utilized as the liquidity pair for all LEO/LeoStrategy assets now and in the future. This means more MM operations = more inflows = more capital for yield.
Additionally, Yield is paid to LPs only which means to get yield you have to provide liquidity which means providing more ammunition for our market makers to profit more deeply.
Market Makers are value-adds to any economy by creating tighter markets. Typically, profits are absorbed into a company. We:
The other MMs already generate excess capital, if ACE is comparable it will generate excess of 20% yield obligations. Since it is used in more LPs, our models show it will be significantly higher.
Hope this helps you.
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STOPI just made a small entry into ACE of 5 HBD sent manually to @leostrategy.
Best wishes to all HIVE folks whether you are into ACE or not. Cheers!
Transaction: https://hivehub.dev/tx/225d3958c32bf10204f4f3a80b4557adfe33f989
I also made a test buy of 5 ACE: https://he.dtools.dev/tx/7b6a69b8f5162290345caf3d4a187e96051f888a