LEO is now natively an Arbitrum-based token. We've still got the wrapped versions of LEO as well:
- heLEO (Hive-Engine LEO)
- bLEO (BSC LEO)
- pLEO (Polygon LEO)
When you unwrap any of these versions, they now unwrap to native LEO on Arbitrum. This is all a part of our LEO 2.0 roadmap. We've made amazing progress in this transition and each day, we are releasing another part of the roadmap.
LEO 2.0 is the biggest upgrade we've ever made to our ecosystem. It is a full-scale tokenomic shift.
LEO is now:
- Deflationary - the INLEO Rewards Pool model ditched inflation and is now paying out of the SIRP (buyback-based rewards pool)
- Natively on Arbitrum - heLEO is now a wrapped form of LEO on Hive Engine. The native version of LEO is on Arbitrum
- Bridge revenue (bLEO, pLEO, heLEO) burns LEO daily
- The max supply of LEO is 30M tokens. This 30M will only be reduced over the years through burns
- 100% of LeoDex affiliate fees buy LEO for the next ~80 days. After 80 days, 100% of LeoDex affiliate fees get distributed as daily USDC harvests to all sLEO stakers
sLEO
sLEO is staked LEO on Arbitrum. We have a new staking contract that we're about to deploy on the Arbitrum blockchain.
With this contract, you'll be able to stake LEO natively on Arbitrum and receive "sLEO".
With sLEO, you'll have governance utilities on LeoDex and you'll also get daily USDC harvests when you use LeoDex. 100% of the LeoDex affiliate fees are paid into the sLEO contract and then sLEO stakers can navigate to LeoDex to harvest their USDC.
The sLEO contract will go live this week. The USDC harvests will begin after ~80 more days.
My Vision for sLEO
In this image, you'll see a tab from the new /leo page on https://leodex.io.
This tab talks about the Total Addressable Market (TAM) for LeoDex.
First, we're building the best Cross-Chain DEX Web App we can imagine.
Second, we're building LeoMerchants as a seamless IRL cross-chain point of sale system. It uses THORChain as the settlement layer to allow merchants to receive any crypto and customers to pay in any crypto.
Third, we're building the LeoDex Mobile App. This will be a cross-chain mobile trading app that is natively on IOS and Android devices.
Fourth, we're releasing LeoKit. Notice how we say releasing not building - LeoKit is already built and runs LeoDex on the backend. Refining our APIs so that they can be used by other projects is all it takes to release this. We are releasing it last as it will be a seamless API that is simply upgraded by our other work.
$12k Per Day for sLEO
On this page, you'll see the vision for $12k per day in USDC for sLEO stakers who utilize LeoDex. This is the vision. We start by scaling up the USDC inflows from LeoDex's Web App. Then we deliver LeoMerchants, LeoKit and the Mobile App to capture more revenue as our ecosystem grows.
All of this brings massive utility and value to the LEO Token Economy. The roadmap for getting there is 4 clear steps. Now we just build relentlessly and ship these things one-by-one.
90 Days of POL
POL stands for Protocol Owned LEO. ICYMI: a key part of LEO 2.0 is the 90 day airdrop + buyback phase.
After 90 days, 100% of LeoDex Affiliate Fees are paid as USDC to the sLEO contract. But what happens to LeoDex Affiliate Fees in these first 90 days?
For the first 90 days, the POL address uses 100% of LeoDex affiliate fees to buyback LEO and stake it as sLEO.
The LEO Permanent Buyer
The POL becomes a permanent buyer of LEO. How? For 90 days, it accumulates as much LEO as it can. My goal is that it accumulates somewhere between 2M and 5M LEO in this time.
After 90 days, let's just say 2M LEO is staked by POL.
If the total sLEO is 10M LEO, this means that POL is entitled to 20% of the daily USDC from LeoDex Affiliate Fees.
These harvests are then autonomously buying LEO with the USDC it receives, staking that LEO for sLEO and then earning more USDC the next day so that it can purchase even more LEO.
Assume that POL gains 10% more market share each year of the total sLEO simply by buying LEO and perma-staking it for sLEO. This means that it earns 10% more of the daily USDC payouts each year and compounds it.
Compound growth is an amazing thing. Wrap your head around the idea of a 2M sLEO start that then buys and stakes more LEO each day.
If LEO drops in value, then it buys even more LEO and gains market share faster. If it rises in value, everyone is happy.
Overtime, this creates a permanent floor price for LEO. It will have a cascading effect.
The Catch
Does this sound too good to be true? I have spent a lot of time thinking about the future of the LEO Token Economy. My goal with the LEO ecosystem is to build a $1B market cap project.
Right now, LEO's supply is 30M tokens. At $0.02, the market cap of LEO is $600k.
To reach $1B, we will need LEO to be ~$33 per LEO.
That's quite a large rise in valuation from where we are today.
The catch of the Permanent LEO Buyer and sLEO's success is that it is entirely contingent on our ability to deliver 4 products that attract and retain our Total Addressable Market.
The TAM in the featured image of this post is our target in the near-term. We will deliver these 4 products one-by-one. If we do not grow the LeoDex Web App's volume and then LeoMerchants processing volume and then LeoDex Mobile App's trading volume and then LeoKit's trading volumes then the USDC that is paid to the sLEO contract will be negligible.
The path to success is to grow the volumes and see more USDC earned by the sLEO contract. The path to failure is that the 4 core LeoDex products get little usage and very little USDC is earned by sLEO. In this case, the Permanent LEO Buyer will have a small bite and very little impact.
The key to our $1B vision for the LEO Token Economy is simple: product-market fit.
We must deliver the 4 best cross-chain products this industry has ever seen. Get volume, get users and see USDC flow into the sLEO contract in a way that few of us can imagine right now.