Part 8/13:
An ingenious component involves managing the peg through interest rate policies. If a tokenized asset like Nvidia diverges from its underlying value—say, trading 10% below—Leo Strategy could systematically increase the interest rate on that derivative. This increased demand incentivizes buying the undervalued tokenized asset, restoring its peg, akin to how central banks adjust rates to control currencies.
Conversely, when the peg is restored, rates decrease, creating a self-correcting mechanism that aligns the synthetic asset with its real-world counterpart. This approach mirrors traditional economic policy, but applied within a decentralized, transparent framework.