Our mission is to own LEO and generate accretive yield for our LSTR shareholders. We believe that LEO will not only become a $100M market cap token but that it will extend far beyond that in the years to come. Khal is a visionary that is leading this ecosystem to new heights.
For years, we've been LEO token holders. Watching and participating in all the relentless developments by the LEO Team. This team is so incredible and so is the community behind the token.
There are some critical issues with LEO and that's why the value has not performed well over the years. Sure, the Alt market has hurt us as well but that's not the only reason. As you see with $HYPE and some of the other newer tokens out there, there is still juice in the market when you have the right setup.
The Setup
The team is focused on LeoDex. They are also setting up the LEO Token for success. They keep posting teasers about LEO 2.0 on X and Threads in order to get not only us (existing LEO Token holders) excited but more importantly to get external token holders excited.
The Setup is that LEO is misaligned right now. Incentives are all over the place. The largest earners are simply delegating HIVE POWER to @leo.voter and dumping their LEO each day.
On top of that, we have inflation paying creators and curators to use INLEO each day. This was great to spread the token out initially and build a community around the token but it is no longer serving the ecosystem well.
2.0 represents a realigning of the ecosystem around LEO
- Inflation cuts to 0
- Rewards on INLEO come from buybacks only
- Rewards for delegators to @leo.voter come from buybacks only
- LeoDex affiliate revenue (which is currently about $10k/mo and growing - which is wild since LeoDex V3 has only been live for 2 months) is being 100% paid to LEO Stakers on Arbitrum
- POL strategy will allow the protocol (LEO) to earn a % of the yield on Arbitrum alongside us LEO stakers. This % that is earned will autonomously purchase LEO and stake it for more yield. Rinse & repeat to constantly get more stake into POL and off the market
LeoStrategy's Future
LeoStrategy will NEVER SELL LEO. Right now, our model is to stake every LEO we get into LEO POWER on INLEO.io.
This being said, we are seeing a different possible future emerge. Khal actually put up a poll about this yesterday which got us thinking about how we want to approach our future.
Look to Strategy and Michael Saylor as a lens to what we are aiming to achieve. We are aiming to acquire as much LEO as humanely possible and use any revenue we can generate to acquire more LEO.
With LEO 2.0, the question is: is our LEO better served as LEO POWER on INLEO or as LEO staked on Arbitrum via LeoDex?
If our goal is to use external revenue in order to buy more LEO to create buy pressure on the token (to raise LEO's value) + generate a return for our LSTR holders, then it seems to make sense that we would want external assets flowing in in order to buy more LEO.
External USDC Inflows to Buy More LEO, Stake it and Generate More Flows
If @leostrategy moves our LEO to Arbitrum and stakes it to earn a % of the daily USDC payouts from LeoDex Affiliate Revenue, then we are effectively acting like a secondary POL.
The POL strategy Khal has talked about is basically doing the same thing: buying LEO, staking it to earn USDC then using earned USDC to buy and stake more LEO so you earn more USDC the next day.
Imagine a future where LeoStrategy does the same. What if we buy and stake LEO in the arbitrum contract. Then get "10%" of the daily USDC payouts. Then we take our 10% of the payout and buy LEO and stake that LEO with it. Then the next day we may earn 10.1% of the daily USDC (all example figures).
If this is $10k per month (current number), then we would effectively be buying $1,000 worth of LEO each month and staking it.
Remember, LeoStrategy's mandate is that we never sell LEO. We simple acquire more LEO using any means possible.
Why Hold LSTR?
Owning 1 share of LSTR is intended to be a leveraged long on LEO. We own LEO and we acquire more LEO through any means possible (revenue, raising capital, etc.). We then deposit that LEO into either LEO POWER (current model) or staked LEO on LeoDex (proposed model).
Whatever we earn gets us more LEO and stakes it.
Over time, 1 share of LSTR = more LEO.
Our Goal
Our goal is to raise the LEO token's value as much as possible so that we generate the highest possible return for all LSTR holders.
Buying 1 LSTR should mean owning more and more LEO over time.
For example, if you buy 1 LSTR, you have a theoretical claim on the LEO owned by LeoStrategy.
If we double our LEO holdings each year, then your 1 LSTR should double in LEO-denominated value each year (all else being equal).
Your Feedback
We'd love to hear from our LSTR holders about the possibility of moving our LEO POWER to Arbitrum and staking it for daily USDC rewards.
100% of our daily USDC rewards from LeoDex affiliate revenue would buy more LEO and stake it in the Arbitrum contract.
This simply leads to more buying pressure on the LEO token. We believe our LEO would serve the LEO token much better by holding it on Arbitrum but it is up to the LSTR holders at the end of the day as it is YOUR LEO.