How will that work, when stock market is closed u can trade tokenized stock, but when stock market opens they will set the price, it's not like they are going to adjust the price to what the tokenized stock is?
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Fascinating question. The high-level answer is in the way we've designed RWAs as synthetic exposure to the underlying
Let's use NVIDIA stock as an example: NVDA pays 0% yield (no dividends). It is currently trading for $183.22 and the stock market is closed
LeoStrategy's RWA protocol could release something that we can just call "xNVDA" for the sake of discussion
xNVDA trades for $182.22 right now (-$1.00 cheaper than NVDA). It's Sunday and the markets are currently closed. Let's assume some negative news came out or generally, people trading xNVDA believe that NVDA will open lower when TradFi markets open tomorrow. This gives xNVDA a kind of "PreMarket trading vibe"
When the market opens, xNVDA traders will watch the NVDA price and trade xNVDA accordingly. Perhaps traders were right and the price of NVDA opens lower, then xNVDA will naturally gravitate to wherever NVDA is trading
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When the market is closed, you could view it as "premarket" or "after hours" type of trading. Most assets can actually trade outside market hours but are usually restricted to the big boy hedge funds
The design of LeoStrategy's RWAs uses yield policy to govern the peg. Without getting too much into the weeds, this means that if the peg drifts low; yield increases. If the peg drifts high, yield decreases
For example: if xNVDA is trading for 10% less than NVDA, then the yield policy will increase the yield on xNVDA to drive demand
If it continues to trend lower and diverge from NVDA (let's say 20% less than NVDA the next week), then the yield policy will increase the yield even more
The yield increase continuously to increase demand until the peg is regained. Other mechanisms like locking (Staking) can help to re-peg in large downturns. For example: if it de-pegs 30% to the downside, a window can open to buy and lock xNVDA for extra yield (increased demand + reduced float)
OK, so u get yield, where does that money come from, u're now paying to hold SURGE from what was paid for it, all income i see beeing posted is used to buy more Leo, would be great to also see some income beeing set aside for this