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RE: LeoThread 2025-09-01 16:04

in LeoFinance2 months ago

The general idea here is exactly right

LeoDex is the initial torque: bringing exogenous revenue into the LEO token economy

Then LeoStrategy and POL utilize this torque to move their gears: POL autocompounds for more LEO

LSTR also autocompounds for more LEO but it’s also able to use the growing LEO on its balance sheet to spin its economy and generate more capital inflows for future LEO buys

The expanding balance sheet is a gear that is moving from LeoDex revenue. The balance sheet expansion then serves to add more capital and therefore more balance sheet expansion

$1 of LeoDex inflows is outputting $10+ in economic value to Leo’s market cap

https://inleo.io/threads/view/khantaimur/re-leothreads-2uyg1vc11

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I believe that is why LSTR is a leveraged play. The return compounds over what one could normally do with the underlying asset.