LeoStrategy Token Buybacks | Re-Pegging After a 50% BTC Drawdown
BTC and the rest of the crypto market have corrected HARD since the launch of LeoStrategy. This correction has led to quite a lot of turmoil for the LeoStrategy portfolio of products. Not only have the presales slowed in terms of momentum, we've also seen the token prices decline as they are tied intricately with the broader crypto market through LEO.
Low LEO prices are good for LeoStrategy in the long-run. We are able to buy LEO very cheap and accumulate it permanently in our treasury. Eventually, LEO will trend higher and the treasury will be worth exponentially more which then increases the backing of LeoStrategy assets + allows us to continuously acquire additional LEO.
Short-term, low LEO prices can lead to our assets de-pegging. LeoStrategy is a very new and big idea. It must be said that we have continuously kept logs and detailed information related to our protocols, tokens and project in general.
Economics live at the core of how LeoStrategy operates which is why we must outlay the concern of these massive depegs.
We've spent a lot of time discussing and working behind closed doors about the solutions at hand. We hear from users and holders that these tokens are de-pegged vastly below where many believe they should be.
We completely agree and we have collected the data and created a plan to correct this.
Introducing LeoStrategy Recover
live tracking at https://leostrategy.io/recovery
LeoStrategy's Asset Mix is not intended to be a static mix. These assets are dynamic and their designs must be dynamic as well. Staying too rigid can lead to a break in the system.
We're operating on the bleeding edge of FinTech and this means having an evolving approach. Doing what is in the best interest of the token holders of the various assets we've deployed.
LeoStrategy's assets have a dynamic design. The RWAs were designed to increase yield as the price decreases which is intended to drive demand and increase the price of assets back to their peg.
In theory, this is a great design however in practice; this has not been happening. The prices have fallen alongside the rest of the crypto market. Despite yields constantly increasing, the prices aren't correlating back to their pegs.
This creates larger and larger yield obligations for LeoStrategy while hurting the holders of the tokens + ruining the value proposition of "holding 1/100th TSLA" (for example with Tokenized TSLA).
The Road to Recovery and a Better Peg Model
Our plan to recover the pegs for SURGE, TTSLA, TGLD and TNVDA is quite simple: Stablecoin yields are still paid but instead of paying liquid stablecoins, they will rebase into token buybacks.
This means that 100% of yield that would be paid as stablecoins is instead used to fuel RCBF Buybacks of each token.
In simple terms, if $1,500 per week in SURGE yield is obligated in terms of Stablecoin yield; that yield will be used to purchase $1,500 per week of SURGE and permanently hold it in the RCBF.
The same goes for TTSLA, TGLD and TNVDA. These assets will all have their yield rebased into perma-buybacks until the pegs are recovered.
Token Upside
As a token holder, you're getting stablecoin yield up until this point. During this Peg Recovery phase, your yield is being auto-rebased into buybacks of the token themselves.
From an economic perspective, you are not losing anything. Instead of getting liquid yield, your existing tokens become worth exactly the same $ value more as the yield you would've gotten (likely even more as perceived recovery = real recovery).
As the tokens recover, the prices will increase even more than strictly the USD used to buyback the tokens via RCBF.
For example, someone holding $1,000 worth of SURGE right now is getting 15% APR per 1 SURGE held.
With the recovery plan, a peg recovery to $1 per SURGE (from current $0.50 price) = a 100% ROI (2x on the current price).
This is equivalent to 7+ years worth of SURGE yield. The ROI is accelerated by the perceived recovery of the pegs.
Post-Recovery
We expect the pegs to recover rather quickly under this model. Relatively speaking, the float is not very large for these tokens. Buying back thousands of dollars worth of SURGE, TTSLA, TGLD and TNVDA each week will lead to a surge in recovered peg prices.
Once pegs are recovered, SURGE yield as stablecoins will transition back from rebased yield to liquid stablecoin yield.
The RWAs will get an economic model update. We have a design to dramatically improve the peg of RWAs by introducing a Hard PSM Conversion Module. This is similar to what we've designed for ACE which we believe to be a vastly superior model for maintaining ~2% of peg price.
- 1 SURGE should always be worth ~$1 (within 10% as a bond)
- 1 TTSLA should always be worth ~1/100th TSLA (within 2%)
- 1 TGLD should always be worth ~1/100th TSLA (within 2%)
- 1 TNVDA should always be worth ~1/100th TSLA (within 2%)
Post-Recovery, this model will be dramatically improved by introducing the PSM for conversions. Yield will resume as stablecoins and the conversion mechanism will hard-peg all of the assets. Leading to more trading volume around the pegs which means more Market Maker profits for LeoStrategy which means more daily LEO Purchases.
The current model of these assets has been a strain on LeoStrategy's perception in the market. We are healthier than ever and delivering more technology, features and new revenue streams than ever before.
LeoStrategy.io/predict launched last week and is already generating revenue for the Treasury. This revenue is used to purchase LEO and perma-stake it on our balance sheet.
The de-pegging of our asset stack has led to FUD around the project. LeoStrategy.io/recovery solves this problem and allows us to build the future of FinTech.
By LEO, for LEO.
FAQ
Why are stablecoin yields no longer paying out?
This is actually not true, though some may perceive it this way. Stablecoin yields in fact continue to pay on all of these tokens. Instead of paying liquid yield, they are rebased into your token value. So if $2,000 per week was being paid as stablecoin yield before, $2,000 per week is still being paid. It's just being paid to the RCBF to purchase SURGE, TTSLA, TGLD and TNVDA off the market and perma-hold it to increase the price.
For more FAQs like this one, view them on https://leostrategy.io/recovery.
So, one question - all the missed yield payments over the last few weeks. Will they still be sent out, or are they being folded in to this recover program?
All yield is folded into Buybacks effective immediately. This also resolves an issue we've had with the daily RWA yield payouts. This will lead to a larger and more drastic recovery initially as that yield is folded into equity
For example, RWAs will start recovering extremely fast. Trackable via https://leostrategy.io/recovery
Thank you for sticking with us as we continue to iterate toward a better model. This new approach will quickly re-peg the assets by using yield to buyback and permanently stake these tokens off the market. Then the RCBF's operations will be expanded to handle more fluid conversions (think: HBD Conversions but more robust) and maintain the pegs continuously while offering stablecoin yield as we have been
So, you are solving Leostrategy's liquidity problem by taking away ours. Yield we were budgeting on receiving are now not coming. Instead you are taking the money you owe us and putting it on your own balance sheet. Um, I get the theory behind it, but I'm not a fan.
What happens to "bonus" yield we locked in "for life" when we bought up big in the pre-sales?
View more
This is a great strategy and the Dashboard is some excellent work. The presentation of everything you are doing is top notch. The quality can compete with any 10 figure project in the market. The tough part is onboarding enough investors to get to that place. Marketing on other social media more or collaborating with more outsiders might get us the new capital we need.
Thank you - this is our goal with the Prediction platform. We can reach a much wider audience with it. Soon, it will allow Base logins + USDC Deposits
LoL, in other words these tokens failed hard as some people warned due to lack of interest/marketing (hive is too small to sustain em) and will be a permanent bleeding for you from now on.
Unless you plan to push them out of hive to get fresh blood to invest, it only makes sense to retire them and pay investors their money back and move on.
Ps: also makes you wonder if anyone knew this was coming up and scooped up cheap tokens expecting the buybacks. 🙃
Unsurprised to see you show up to complain
Enjoy your profits at the sacrifice of your community
View more
Congratulations @leostrategy! You have completed the following achievement on the Hive blockchain And have been rewarded with New badge(s)
Your next target is to reach 19000 upvotes.
Your next target is to reach 55000 upvotes.
You can view your badges on your board and compare yourself to others in the Ranking
If you no longer want to receive notifications, reply to this comment with the word
STOPGreat strategy—turning a downturn into accumulation is smart thinking. Do you think the buybacks alone will be enough to fully re-peg the tokens?
The most recent liquid yield on SURGE was due a few days ago is that expected to be $0 liquid?
If the peg gets restored by buying the token in the market does our 15% yield come back? Or is the liquid yield gone forever?
Edit my suggestion if you have to stop the liquid yield:
Don't buy from market making bots. Most owners won't benefit from this - only the most sophisticated.
Earn income each week from your LEO and allocate the portion attributable to SURGE holders.
Allow holders to redeem on your website a portion each week for HBD at 0.90 if this is the goal.
I.e. if you think the income earned is $900 then redeem out 1000 SURGE tokens proportionally based on ownership as of a specific time.
And do that over time until you pay us back.
if the yield you promised a few months ago is not sustainable then the above method of repayment is steady and fair for all owners.
1). Effective immediately, 100% of stablecoin yield is used to buyback and permanently remove tokens (SURGE and RWAs) off the market and hold them inside the RCBF Treasury.
2). See the https://leostrategy.io/recovery page
3). Yield is not stopped, it is redirected to rebased buybacks. As a token holder, you still earn an identical amount of "yield" though during a recovery switch, this yield is folded as equity. Consider this: if your yield was $1,000 per week (just for an example) and that $1,000 is instead used to purchase SURGE off the market and permanently remove it from the circulating supply, then your equity value effectively increased by $1,000. Yield is still earned -- just as equity upside instead of liquid tokens
This upside is amplified by perception. As tokens are quickly rebased and revalued toward their peg, the market gains more confidence and pushes this beyond the natural buybacks. $1,000 in buyback pressure could actually = $2,000+ in equity gained. Once assets are re-pegged, stablecoin yields resume.
4). The RCBF already does this -> https://leostrategy.io/rcbf - and will be expanded in terms of functionality and "intelligence" in the coming days
Can you explain what account will buyback SURGE? And will you buy it every day or once a week?
Will it be a market order on hive engine?
or buys from hive engine, liquidity pools and off chain?
Final question. Is it accurate to say the liquid yield that was owed to me as of Sunday at 0:00 UTC will not be paid in HBD?
The reason I'm asking is you are making an announcement today - and backdating its effective date by the sounds of it.
View more
This has some chance to re-peg these LEO tokens. I think of all these tokens as an experiment and I like to see different things being tried out in their management. I'll likely HODL and watch what happens. Best wishes to us all!
!ALIVE !BBH !UNI !PIZZA !LADY
View or trade
LOHtokens.@kenny-crane, you successfully shared 0.1000 LOH with @leostrategy and you earned 0.1000 LOH as tips. (1/10 calls)
Use !LADY command to share LOH! More details available in this post.
LeoStrategy's tokens will quickly re-peg. We are already seeing a double digit % increase since the buyback program started today.
These assets live on the bleeding edge of FinTech so some variance in approach is important. Staying fluid and continuing to innovate is how we'll continue to refine for the best model possible
$PIZZA slices delivered:
@kenny-crane(1/10) tipped @leostrategy
Join us in Discord!
So u sell products, then find out they can't hold value and then just decide to switch how it works, i was using my yield to fund something else, now i can't do that anymore, Surge was supposed to be paying out weekly dividend to holders, now we get nothing, just the hope from u that prices will rise and what if they don't, we never get yield back and have to just accept that.
The yield is still paid. It is paid directly into buybacks which drives the price up an equivalent amount
We gave this model a lot of time to prove that yield could create organic demand. It did not. The tokens have a very specific mechanism built-in for sustained periods of downturns
We could:
Read the whole post please.
And this solution is comming from the same genius mind that thought it was a good idea to sell that many tokens in a limited community, in a short time and think that by some magic that community has more money then they need and just keep buying them, u released the 3 tokenized tokens so close after eachother that u couldn't even know that the peg mechanism would work. Now with this u break the trust as u change the contract, that "Temporarily" is going to be everlasting as all those that now feel like the trust is gone will sell against u to just swallow an acceptable loss and be glad that they get at least that back. I stopped buying after i had that figured out, sadly i was in too deep with surge to just take my loss, so i used that yield for something else in the hope that i wouldn't get screwed again, but there goes my plan.
View more
Edit: It seems many aren't reading the full details of the post + the https://leostrategy.io/recovery page
We ask that before you draw conclusions, read the info to gain an understanding.
Stablecoin Yields are temporarily diverted from liquid payouts to buybacks this is fundamentally different than saying yields are off or not being paid. Some have incorrectly taken it to mean that.
We recommend reading this thoroughly or Asking Rafiki to clarify for you how stablecoin yields purchasing tokens and removing them from the circulating supply impacts equity value.
Yield isn't "off" — it's redirected into buybacks. Instead of paying out stablecoins, that same yield buys tokens at depressed prices and locks them permanently in the RCBF, reducing circulating supply. Lower supply + same treasury value = higher equity per token, which mechanically drives re-pegging. Once pegged, liquid yields resume. Per DWF Labs, buybacks reduce circulating supply and create positive feedback loops benefiting holders.
I am not satisfied with this strategy because you just brought the strategy all of a sudden and you didn't ask the opinion of the investors.
Was price depegging fault of mine? Why should I pay my yield for repegging? I would love to get yield instead of price repegging.
As strategy already came I want to know how much time it will take to re pegged. 1 months or 2 months?
Your yield is getting paid directly into the tokens. This is how rebased yield works (many tokens in DeFi do it).
This is a temporary measure to re-peg assets. The net effect will be value appreciation from the current price that is worth multiple years of earning income while watching the tokens decline in price
This is in direct response to token holders asking what we will do about the consistent deviation of tokens
After a few weeks/months of this being in place and re-pegging the assets, then yield being flipped back to liquid rewards; nobody will be complaining
But I guess many wouldn't accept the idea if they knew their yield will be used for it.
For me it's loss. Now I need to sell certain amount of SURGE on weekly or monthly basis which wasn't in my plan.
ok. Let me see few weeks about the price recovery.