So like many of you I have been reading @leostrategy posts about what to come going forward.
The inital sale is over, 100K $LSTR was sold for 4.25 Hive each which gave the project a big starting capital to boost their strategy.
@leostrategy aims to grow wealth using the $LEO token and its variants (like bLEO, pLEO, heLEO, and sLEO) through various methods like trading bots, financial products, and a system to keep building up $LEO holdings.
One thint the mentioned is arbitrage bots.
Market-Making Bots for LEO Pairs
Market-making bots are like automated shopkeepers that buy and sell $LEO tokens (and its versions like bLEO, pLEO, heLEO) on different blockchains to keep trading smooth. They place buy and sell orders on platforms like LeoDex, to make sure people can trade $LEO anytime. Example: Imagine a lemonade stand that always has lemonade to sell and is ready to buy lemons from anyone. The bot does this for $LEO tokens, ensuring there’s always a price to buy or sell, which helps keep the market active.
How it works?
$LEO exists on multiple blockchains. For instance, heLEO is $LEO wrapped for use on Hive Engine, while the main $LEO token lives on Arbitrum. It’s also traded on platforms like PancakeSwap or SushiSwap.
Bots watch the market 24/7, buying $LEO when it’s cheap (e.g., $0.05) and selling when it’s slightly higher (e.g., $0.051), earning small profits from the price difference.
This keeps trading steady and can prevent big price swings.
Why it matters:
These bots make it easier for people to trade $LEO, which could increase its popularity. However, $LEO’s price doesn’t move much (only 1.2% volatility), so the bots need to be smart to make money without taking big risks. We don’t know exactly how these bots are set up (e.g., how wide their buy/sell price gap is), so their success isn’t guaranteed yet.
Derivatives Products (Bonds) for Raising Money and Earning Profits
@leostrategy plans to offer financial products like bonds to raise money and earn extra income through market movements. Bonds are like IOUs where investors lend money to @leostrategy and get paid interest. They also plan to profit from price changes using strategies called “volatility harvesting” and “ATM harvesting.
”Example: Bonds: Think of lending $100 to @leostrategy, and they promise to pay you back with 5% interest in a year. You get your $100 plus $5, and @leostrategy uses your money to buy more $LEO.
Volatility Harvesting:
Imagine selling a promise (like an option) that lets someone buy $LEO at $0.05 later. If $LEO’s price stays stable, you keep the fee they paid you for that promise.
ATM Harvesting:
This is like selling those promises at the current price of $LEO, where you can earn bigger fees because it’s a balanced deal.
Why it matters: Bonds could bring in cash to buy more $LEO, and the harvesting strategies could earn extra profits. But since $LEO’s price doesn’t move much, these strategies might not make a lot unless the market gets busier. De
tails on how these bonds or strategies work (e.g., interest rates or risks) aren’t clear yet.
Everything here is not set in stone yet so stuff can change and be adjusted. But we have exciting times ahead. Do your own research to understand all these machanisms being built.
