RE: Introducing ACE | Overcollateralized Stablecoin With +20% APR Yield Boosts and Lending

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)