The announcement post for wLEO went live three days ago on August 31st. One of the main things about wLEO is that there is a high incentive for the liquidity providers on Uniswap. Everyone who provides liquidity on Uniswap will get airdropped additional LEO over the next three months (on top of the normal fee structure from Uniswap tx's that they'll benefit from).
Recent estimates based on the new LEO prices suggest the annualized ROI will be over 100% for the 90 days that LP incentives are in place. Which could be a major reason why the price has tripled in the last 3 days.
Liquidity on Uniswap is an extremely important parameter and investors outside of Hive are looking closely at it. Having incentive for the whole community to participate in providing liquity is a great move.
It's important to continually highlight the goal of wLEO: we want to involve the Hive and LeoFinance community in the process of providing initial liquidity and volume, but the real goal is in finding people outside of the Hive ecosystem to speculate, HODL and most importantly; learn about LeoFinance and what our project is about.
The goal here is to stir up interest outside of Hive and bring in a new class of investors, readers and writers to LeoFinance.
Share of Staked LEO
The share of staked LEO from the last @leo.stats report - on August 30, a day before the announcement - was looking like this:
The percentage of staked LEO has always been high throughout the lifetime of LeoFinance (about 14 months): always around 90%. Also keep in mind that LEO rewards are 100% liquid as opposed to most Hive-based rewards structures which force 50% powered up and 50% liquid payouts.
Having this high amount of staked coins shows a great amount of trust in the project but it can also be a problem when a new listing on an exchange is made and a large amount of coins are needed for liquidity. In this case, our wLEO bridge is being created and we're being listed on Uniswap.
Since we need a large amount of liquid LEO to provide liquidity on Uniswap, we've created an incentive program to encourage large stakeholders to unstake LEO and provide liquidity to the wLEO-ETH pair. A minimum of $100 is set for the liquidity providers to be eligible for the airdrop incentives.
Unstaked LEO by Date
Here is the chart for LEO POWER that began the unstaking process over the last 14 days. For reference and comparison, a few days before the announcement were made are also included in the chart - as you can see, not many people unstaked LEO up until now (we've got one of the strongest-handed communities in the world 🦁):
Note that these figures are LEO tokens that have begun the unstaking process. Not finished unstaking.
The LEO unstaking period is four weeks, so each of these candles that started unstaking will be divided in four weeks and distributed weekly.
When compared with the amount of LEO that started unstaking before the announcement, the numbers are almost nonexistent. On the day of the announcement there was 297k LEO that started powering down to provide liquidity.
The next two days showed 118k and 159k (respectively). September 3rd already has smaller numbers with 36k being unstaked.
A total of 633k LEO was put in powerdown in the period above.
Who is Powering Down?
Here is the chart for the top 15 accounts that started powering down.
If you've been watching the Discord, then you'll know that all 3 of these top accounts will be using their LEO to provide liquidity to the Uniswap pool.
Also, the vast majority of people on the list have already confirmed in Discord that they're going to provide liquidity to the Uniswap pool.
This means that more than 500k LEO will be put in the Uniswap liquidity pool right at the start by the top stakeholders. Out of the 4.6M LEO currently in circulation, this is more than 10% of the supply.
Interesting times ahead 😊
To finish things off, here's the LEO price chart in dollar value!
Clearly, the community is excited to participate in the Uniswap liquidity pool incentives.. LEO Hit $0.18 on the most recent candle (reaching parity with the price of HIVE for the first time ever).
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Report by @dalz
Posted Using LeoFinance