RE: SURGE is the Next-Gen Stable Yield Play

[alohaed]

You are the yield for the moment. From earlier communications LeoStrategy set aside six (6) months of the funds used to purchase SURGE to pay yield.

HP is a portion of that potential yield, with revenue generated through curation via the interlocking networks of leo.voter and lstr.voter - it genuinely baffled me why there was some openly antagonist narrative when this revenue stream was clearly necessary.

The crosschain arbitrage bots and market makers are also a source of revenue, though dependent on volume and awareness of the tokens.

The BASE liquidity pools are also a potential source of revenue that can fund ongoing yield payments to SURGE holders, along with the sLEO staking revenue from LeoDex.

If/when the initial SURGE presale is completed Leostrategy is obligated to provide 15% APR for 500,000 shares of SURGE with a yield valuation fixed at $1.00 per share. That is $75,000 annually.

Comments

[leostrategy]

As someone who holds no LSTR, SURGE or LEO it's confusing why you've made it a mission to spread false narratives. We have seen you do this not only on Hive but on X too. Let's be crystal clear here.

1. 6 Months of capital set aside for dividends - yes, as outlined in the post shared. We keep 6 months worth of the yield so people know its readily available. This also gives time for the LeoStrategy flywheel of market making and ATM to take hold
2. Please point to exactly what your narrative behind HP yield is. You've just named two unrelated projects: LEO.voter and lstr.voter. Where exactly is the HP coming in to pay yield? Since we live on a blockchain, I'd rather see you use actual data onchain to point to this
3. Arbitrage bots are already making ~$100 per day = $36,500 per year. The current dividend obligations of $48,900 per year are already ~74.6% covered by arbitrage volume alone. This is with only LEO Cross-Chain Pairs as SURGE & LSTR cross-chain pairs aren't live yet. When all 3 of these cross-chain pairs are live, the dividend obligation will more than be covered by arbitrage alone (though these aren't the only source of capital for dividends. ATM issuance, LP volume, new token issuance, sLEO staking rewards etc. are also sources of capital. Capital is used to pay dividends. Excess capital beyond that - and there is A LOT of excess capital beyond that - is used to fund more LEO Purchases for our balance sheet)
4. Yes, thank you for the math. 500,000 SURGE shares at $0.15 per share = $75,000 annually. Between cross-chain arb, HE arb, sLEO staking, ATM issuance, LP volume, new issuances $75,000 represents a tiny fraction of the capital stack

Again, I'd love for you to explain how HP plays any role in this? More than just explain, provide some onchain evidence. We're tired of seeing benchwarmers talk about the game but not play in it

[azircon]

Arbitrage bots are already making ~$100 per day = $36,500 per year.

Let me ask you this, are you really as stupid as you sound with this argument? Or you think other people are more stupid than you?

Which arbitrage strategy is linear in the world? $100/day translates to $36500/yr? In which Quantum Universe? Sign me up please!

NOT

[senorcoconut]

Just re-read the reply from @alohaed and I don't know what was meant by yield coming from HE. So thanks for clarifying that @leo.voter and @lstr.voter aren't related. Tho I already knew that being that they are 2 different projects!

And I love to have read that 3rd point you made. ~74.6% covered by arbitrage volume alone is freaking awesome!!!

[leostrategy]

Glad we can help clarifying 🦁

[senorcoconut]

Same here 😃

[senorcoconut]

Yep makes sense. I had read the original.post but forgot how exactly these mechanics worked. Especially the first 6 month runway, I don't remember reading that part, but it's in there now.

The whole thing is genius really! Thanks for the explanation 👍