RE: LeoThread 2025-07-24 09:14

[khaleelkazi]

I agree, I think it would have a massively positive impact

The reason to use LSTR is that the fund value can backstop the loans (as a secondary measure, the loans are primarily backstopped by the sLEO collateral that is deposited)

By having a fund with actual fund value backing the loans as well, it increases the overall confidence and robustness of the lending protocol IMHO

Also, LSTR is now under my direct guidance. The openness is something I will fix by adding more people to the public board - like myself, Task and others

I think LeoStrategy is the vehicle we need for deep financial applications, like the one I described here

Comments

[khaleelkazi]

My thought here is:

1. LSTR will issue a stablecoin called LUSD on Arbitrum
2. We'll add a page to interact with their lending contract on leodex.io/loans
3. You deposit sLEO, get LUSD
4. There's an LP for LUSD-USDT
5. You can sell or pool your LUSD
6. LSTR earns the yield on your sLEO through the duration of your loan (instead of charging interest). 100% of their earned yield buys more LEO for the main fund and bolsters fund value
7. When you pay back the loan, you have to buyback LUSD and burn it through the /loans interface
8. Then you get your sLEO back

This is similar to how DAI works

[simplegame]

absolutely. More products is what we need.