Yield is defaulted as stablecoins but one of the underestimated impacts will be those who choose to get their yield as TTSLA (autocompounding)
I personally will opt to autocompound my TTSLA yield. This will create an automatic pressure for TTSLA to maintain its peg
I think it’s a genius design and you’ll see what I mean when TTSLA is fully live in the wild (presale is sold out)
The peg will be autonomously driven to hold itself due to yield. Why?
Imagine this: if TTSLA starts trending down relative to TSLA, then the yield will start increasing from 3% to 5% to 10% to 20%…
This increasing yield creates daily buyback pressure through anyone’s holdings who chose TTSLA autocompounding (like me)
This will drive TTSLA up toward its peg as it drifts lower (since the yield will increase).
Also, the fact that we all know this is happening transparently will actually lead to people front-running it. Self-fulfilling peg
https://inleo.io/threads/view/brando28/re-leostrategy-2ykuvfhex