Leostrategy ACE analysis

I see that some things might happen with ACE. Let's dig in

First, with that 20% APR Weekly yield people have incentives to drop TTESLA,TGOLD, TNVIDIA and maybe SURGE. This tokens will be drop in value and then they can borrow buy back and use the earnings to pay. Of course, it was my understanding that this APR is just for the presale tokens.

The problem? There is a single failure point and I don't understand how @leostrategy makes money here to pay all that APR's. Please if you have the explanation keep it simple that a 10 years old can understand it.

After pre-sale they will made a HBD:ACE pool where you can swap and be able to give to the borrow money a use. There is others pools, but if you want maintain the impermanent loss to the minimum this and the SURGE:ACE are the ones.

Especifically SURGE:ACE is pure gold if you buy ACE at the presale because yo can get a combined 30% APR on all your LP. This is +20% yield from SURGE more 20% yield from ACE more the up to 18% LP yield.

That's not investment recommendation at all, but it looks like a good opportunity to risk money on it.

It's funny but this brought this idea to me:

Imagine a lending protocol onchain in Hive where by smart contracts you put Hive in and receive HBD out. If you don't pay, or the Hive drops below the security price, then the tokens are burned. If you pay The profits of the lending can go to DHF or be burned as well.

Hope devs and witnesses make that real.

Now, back to ACE. I hope the LEOSTRTEGY team had plans for a BIG BEAUTIFULL BUYING WALL to defend the $1 price of ACE. If the leave the price to open market it will make no sense borrow money. It's not matter how "collaterized" be the ACE token if people can not have 1 dollar value from it.

Or that it's an estimation or where the heck is LEO at 12 cents right now

Of course that have to be a UI error, right? That or my math is not mathing there. How it is possible that I deposit 120 dollars collateral value and can borrow 200 or more??

I believe it's opposite, yo deposit 200 dollars worth of $LEO and can take 120 dollars loan with a 500% safety ratio. They should fix that.

An important thing to have in mind it's that if @leostrategy want to suceed need start to attrack investors outsdide HIVE and OG LEO ecosystem. Let's be honest, we are the crypto poor LOL.

Hope they don't create a new token anytime soon I can not catch up.

A last things to mention, pre-sale discount only will be a discount if $HIVE don't go +0.1183 cents. Unless they close the sell and create a new one.

PS: to @khaleelkazi and @leofinance team, maybe you should consider lower the unwrapp fee out Hive to 1 o 2% that way the gap between $LEO in Arbitrum and Hive disappear due arbitrage, more users stack in LEODEX and in the process more LEO is burned than right now. A 10% fee is way to high.

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3 comments

Definitely some UI error or just used for display purposes, since the collateral amount can't be lower than the borrowed amount.

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Yes, hope they read my post and fix it.

!BBH

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Preview

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First, with that 20% APR Weekly yield people have incentives to drop TTESLA,TGOLD, TNVIDIA and maybe SURGE. This tokens will be drop in value and then they can borrow buy back and use the earnings to pay. Of course, it was my understanding that this APR is just for the presale tokens.

The APR is only if you pool ACE in liquidity pools. Our expected impact is that the majority of users will buy ACE from the presale and LP with their existing assets (TTSLA, TGLD, TNVDA, SURGE, LSTR, LEO) and earn yield on all their assets by building a true portfolio of their assets and making them productive

How is yield paid?

  1. The 20% boost comes from market maker fees. Our earnings on market making the entire stack of LeoStrategy assets + LEO is quite high. Earnings pay yield and extras beyond that buy additional $LEO for our treasury. You can see that we are not only earning enough for yield, but actually earning extra that purchases thousands of LEO per week (and growing)
  2. Additional yield is earned simply for LP'ing. Every time a trade is conducted, LPs earn sustainable "trade fees" for being an LP. Combine this with the 20% APR boost and LPs do quite well

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LEO Price

Everything below "Preview" is a preview of features to come using placeholder data as ACE is still in presale and not yet live.

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