SURGE is a preferred token offering by LeoStrategy that aims to redefine the idea of a stable, reliable and growing income stream. The holy grail for investors is the ability to earn yield while also participating in long-term upside (appreciation of your assets).
With most stablecoins in the market, you can earn yield that is superior to TradFi so that solves one part of the equation. With a stablecoin though, you trade-off high yields for upside - you get 0% upside in the future but get a lot more yield in the present.
For example, a stablecoin like HBD offers you 15% APR if you hold it in savings. 15% APR is vastly superior to anything you'll get in TradFi. This creates a new investor's dillemma though: if you are not already a multi-millionaire who can just HODL stablecoins and live off the interest, then you still need to create wealth. Unfortunately, you're not going to create wealth in a stablecoin earning interest. Even if that stablecoin is paying you 15%. Investments like these are to preserve wealth and allow you to live off the interest.
For investors who are still in the wealth creation stage of life but also want security and a stable, reliable and growing income stream, what would a holy grail asset look like?
The holy grail would:
- Have limited downside (covered downside in some fashion so that you know you can withdraw your money without a loss at any time)
- Give you long-term asset appreciation (upside)
- Pay you a stable, reliable and growing yield while you wait for the asset to appreciate
Does this holy grail exist? The closest thing to it is probably Real Estate investments. They allow you to buy an asset that appreciates and if managed correctly, pays you a growing yield over time. That being said, Real Estate is inaccessible to most people and is both capital and time-intensive. It also isn't very liquid: so if you want (or need) to get cash quickly, you can't just liquidate Real Estate into capital overnight.
Enter SURGE.
SURGE Solves the Income Investor's Dilemma
SURGE solves the income investor's dilemma by offering:
- Limited downside (floor price is $1 per SURGE)
- Long-term Upside (conversion rights give it upside that is tied to LSTR's success)
- Stable, Reliable and Growing Yield (20% effective yield, paid weekly to SURGE holders)
There is no doubt that investors are searching for yield in the crypto market. They're also searching for products that can protect their downside but still give them access to upside.
SURGE is a next-gen asset that pays you yield while giving you equity upside in LSTR. If you didn't think this was a big idea already, then this might convince you: two days ago, BlackRock released a filing with the SEC and is now launching a new ETF that is very similar to SURGE. It offers limited downside, a piece of the upside + income on BTC by using a covered call income strategy. You can read about it here.
If you needed any more validation that LeoStrategy's products are tapping the bleeding edge of financial engineering, you now can read about the largest capital manager in the world (Blackrock) following in our footsteps and building very similar products. Their newest filing for a BTC Yield ETF is essentially SURGE in a different form:
- Limited Downside
- Long-Term Upside
- Yield While You Wait
This validation for our process of building derivatives and volatility harvesting those derivatives is a major leap forward for the LeoStrategy fund. The #1 barrier we have is confidence in the Strategy we're building. This type of validation should show you that we are in the 1st innining of building a blackrock-style business on top of the LEO economy. Instead of all the profits making fat cats rich, they make Lions wealthy by purchasing and perma-staking LEO on the LeoStrategy balance sheet and taking the LEO Economy to new heights.
Stablecoins: Safety With No Growth
Back to the premise of this blog post: Stablecoins offer you safety with no growth.
It's great to have some safety. We are not against stablecoins. As we said earlier in this post, many investors are still in the wealth-building phase of their investor journey. If you are still in this phase of building wealth, stablecoins simply won't cut it.
Saving some extra cash in stablecoins isn't a bad idea but they aren't going to make you rich. A much better risk profile is to keep some months worth of expenses saved as stablecoins but invest the rest in long-term, appreciating assets.
But what if you need income while you hold those appreciating assets? We all have bills to pay. We all have various risk profiles.
SURGE solves this dilemma by giving you upside + yield while you wait. You get the best of all worlds:
- Pays weekly HBD dividends ($0.15 per token)
- At presale price of $0.72, that’s a 20% effective yield
- Built into LeoStrategy’s permanent capital structure
- Conversion rights → SURGE can be swapped for LSTR equity at future milestones, giving exposure to asset appreciation
Income Comparison: SURGE vs HBD Savings
HBD savings are used to illustrate SURGE as a wealth-building tool vs. Stablecoin yield as a wealth preservation tool. HBD is one of the highest-yielding Stablecoins out there but you can use this comparison on any stablecoin on the market today.
- HBD: 15% APR, fixed, no upside
- SURGE: 20% yield today (presale discount) + upside from LSTR conversion
SURGE Offers Superior Risk-Adjusted Returns to ANY Stablecoin You Measure Against:
- Stable income stream → dividends paid in USDC (or HBD or LSTR based on User Preference) weekly
- Discounted entry → presale pricing means higher yield now
- Equity upside → future LSTR appreciation drives conversion value
- Reflexive ecosystem → LeoStrategy’s model funnels value back into SURGE + LSTR with volatility harvesting and income-producing products, services and tools
Case Study: $10,000 Investment Over 36 Months
If you invested $10,000 in SURGE vs. Stablecoins (HBD is Used Here), what difference does it make to have uncapped upside with SURGE conversion rights?
This chart compares a $10,000 investment in SURGE vs $10,000 in HBD:
- It assumes SURGE grows to $3 by the end of 36 months
- It assumes you buy SURGE at today's price ($0.72 in the presale)
- It assumes HBD's yield stays at 15% (though HBD's yield can change. SURGE's yield is fixed)
- It assumes you cash out all of the yield (0 reinvestment for both HBD and SURGE)
SURGE: $10,000 today buys you ~13,888 SURGE. At the end of 36 months, this chart assumes SURGE is trading for $3/SURGE. This would = $41,664 in total value of your SURGE. At this time, you convert your SURGE to LSTR and sell it for USD. You get your original $10,000 investment back + $31,664 in appreciation you earned over 36 months.
Over those 36 months, you earned $6,249.60 in dividend yield that you withdrew each week and spent (this chart assumes no autocompounding/reinvestment)
HBD: $10,000 today buys you 10,000 HBD. At the end of 36 months, this chart assumes HBD is still trading at its peg for $1/HBD. This would = $10,000 in total value of your HBD after 36 months. At this time, you convert your HBD back to USD. You get your original investment back with no appreciation.
Over those 36 months, you earned $4,500 in yield (less than the SURGE yield because SURGE pays 20% effective yield in the presale vs HBD's 15%).
Wealth Building Requires Appreciation
This exercise is not to pick on HBD. We love HBD. In fact, HBD is the primary stablecoin we use to pay SURGE yield. The reason why we picked HBD is because it is the best stablecoin on the market right now in terms of generating yield.
This exercise is to show you that building wealth requires the ability for your assets to appreciate. Every investor's risk profile is different and some will need income. SURGE is built as a tool to protect your downside, give you future appreciation and pay you yield while you wait.
If you're ready to build wealth while earning a stable, reliable and growing income stream, then SURGE awaits. The presale is nearly sold out (~65% of all SURGE is now sold out). Once SURGE is sold out, a $50,000 Liquidity Pool(s) will be launched at a price of $1 per SURGE.
This offers SURGE investors a $0.28 discount on SURGE if they buy it in the presale. The floor price of SURGE is $1/SURGE so you know that no matter what happens, SURGE is always worth at least $1/SURGE. This exists because SURGE lives at the top of the preference stack for the LeoStrategy Fund (SURGE investors are paid first at $1/SURGE before anyone else in the unlikely event of a liquidation).
As LSTR appreciates, SURGE will appreciate because of the conversion rights that SURGE tokens give you to LSTR tokens.
35% of the presale remains but likely not for long as SURGE is the #1 traded token on Hive-Engine every day with %'s of the presale selling out on a daily basis. If you're ready to build wealth while earning income, it's time to SURGE -> https://tribaldex.com/trade/SURGE
Posted Using INLEO
I'm a believer! If I won the lottery today, I think I would just buy them all! 🤣
hahha
So I know you've mentioned it before... but I can't remember and I can't seem to find it right now. How is the yield being paid for SURGE funded? What makes it sustainable?
https://inleo.io/@leostrategy/how-are-surge-dividends-paid-24-hours-left-fkc?referral=leostrategy
Awesome 👌 and thank you 😊 🙏
You are the yield for the moment. From earlier communications LeoStrategy set aside six (6) months of the funds used to purchase SURGE to pay yield.
HP is a portion of that potential yield, with revenue generated through curation via the interlocking networks of leo.voter and lstr.voter - it genuinely baffled me why there was some openly antagonist narrative when this revenue stream was clearly necessary.
The crosschain arbitrage bots and market makers are also a source of revenue, though dependent on volume and awareness of the tokens.
The BASE liquidity pools are also a potential source of revenue that can fund ongoing yield payments to SURGE holders, along with the sLEO staking revenue from LeoDex.
If/when the initial SURGE presale is completed Leostrategy is obligated to provide 15% APR for 500,000 shares of SURGE with a yield valuation fixed at $1.00 per share. That is $75,000 annually.
As someone who holds no LSTR, SURGE or LEO it's confusing why you've made it a mission to spread false narratives. We have seen you do this not only on Hive but on X too. Let's be crystal clear here.
Again, I'd love for you to explain how HP plays any role in this? More than just explain, provide some onchain evidence. We're tired of seeing benchwarmers talk about the game but not play in it
Let me ask you this, are you really as stupid as you sound with this argument? Or you think other people are more stupid than you?
Which arbitrage strategy is linear in the world? $100/day translates to $36500/yr? In which Quantum Universe? Sign me up please!
NOT
Just re-read the reply from @alohaed and I don't know what was meant by yield coming from HE. So thanks for clarifying that @leo.voter and @lstr.voter aren't related. Tho I already knew that being that they are 2 different projects!
And I love to have read that 3rd point you made. ~74.6% covered by arbitrage volume alone is freaking awesome!!!
Glad we can help clarifying 🦁
Same here 😃
Yep makes sense. I had read the original.post but forgot how exactly these mechanics worked. Especially the first 6 month runway, I don't remember reading that part, but it's in there now.
The whole thing is genius really! Thanks for the explanation 👍
Are there still plans to take SURGE and LSTR to BASE? I thought that would be a thing soon.
https://inleo.io/@leostrategy/status-of-surge-on-base-major-updates-from-leostrategy-5nu?referral=leostrategy
Thanks!
Maybe I don't still have the right framework to understand SURGE, how could it climb to $3 as a stablecoin?
Also, is it that SURGE can only be converted to LSTR when a certain condition is met but cannot be sold for HBD, for example, as an exit strategy?
As @taskmaster4450le said - SURGE is not a stablecoin
It has a $1 floor price but has no capped upside. It can trade for $1.21. $2.21. $4.20. $69...
The liquidation preference of $1 means that you can liquidate SURGE for $1 per SURGE. This protects the downside for any investors in SURGE.
The upside of SURGE is the ability to convert it to LSTR tokens. As LSTR rises, the intrinsic value of SURGE rises (since SURGE can convert to LSTR at any time).
3 factors drive the SURGE price upward:
As SURGE is also a token, you'll always be able to sell it for another token at the market price, in case you don't like your investment anymore.
It isnt a stablecoin. We are dealing with a convertible note.
Look that up and you should have a better understanding.
Thanks, will do that!
10x it!
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