No, SURGE will go up along with the price of LEO/LSTR. Since 100 SURGE can be converted into 2 LSTR, the price of SURGE should stay roughly equal to whatever 2 LSTR is worth. So, if LEO goes to $2 and the LPS is 50, that means LSTR should trade at $100 at par (with no premium). If 2 LSTR are worth $200, then 100 SURGE should also equal $200 (since it can be converted into 2 LSTR and sold for $200). That means SURGE should trade around $2 per token. If it's trading at $1.50, for example, someone could buy 100 for $150 and then immediately convert it into 2 LSTR and turn around and sell it for $200. Which is why SURGE will trade up in conjunction with LEO and LSTR.
SURGE will always pay 15%. That's on every token you own. Right now you can buy it for a big discount so interest is 15%, but the actual yield is almost 21%. That's because of the HIVE price. $72 of Hive will get you 100 SURGE. 100 SURGE will pay you $15 of interest over a year. 15 divided by 72 = 20.83%.
So, $72 turns into $100 when SURGE sells out and trades at $1. So, you get a 39% gain on the SURGE itself, PLUS the 15% interest. After 1 year, you would have $115 from a $72 investment which equals almost a 60% gain.
Now......if LEO goes up and LSTR goes to...say....$100, then you could convert your SURGE to 2 LSTR and sell it for $200. That means that your $72 turned into $200+$15=$215 (a 3x) for a downside-protected, dividend paying, "safe" investment.
SURGE pays $0.15 per SURGE
The % depends on your cost basis
If you buy rn its a 20.80% APR
If you buy at $3, the APR will be far different. Anyone buying at $3 will be buying for the conversion option
Does a bear shit in the woods? 🤣
Actually it will pay $0.15/token which will be closer to 20% if you buy at these prices!
Yes. Yes it does.
As I understand, Surge will tend to remain close to $1... is $LSTR which has unlimited upside...
No, SURGE will go up along with the price of LEO/LSTR. Since 100 SURGE can be converted into 2 LSTR, the price of SURGE should stay roughly equal to whatever 2 LSTR is worth. So, if LEO goes to $2 and the LPS is 50, that means LSTR should trade at $100 at par (with no premium). If 2 LSTR are worth $200, then 100 SURGE should also equal $200 (since it can be converted into 2 LSTR and sold for $200). That means SURGE should trade around $2 per token. If it's trading at $1.50, for example, someone could buy 100 for $150 and then immediately convert it into 2 LSTR and turn around and sell it for $200. Which is why SURGE will trade up in conjunction with LEO and LSTR.
Understood. Makes sense! So I added into my position in SURGE even without realizing that! 😂
Nope. SURGE has unlimited upside
The downside is capped to $1
Huge difference
This means it can go to $1,000 in the future. There is theoretically no upside cap
Understood, thanks.
not correct
SURGE is not a stablecoin
It’s got a $1 downside cap and unlimited upside. As LSTR rises, you can convert SURGE to LSTR which gives SURGE intrinsic value
SURGE will always pay 15%. That's on every token you own. Right now you can buy it for a big discount so interest is 15%, but the actual yield is almost 21%. That's because of the HIVE price. $72 of Hive will get you 100 SURGE. 100 SURGE will pay you $15 of interest over a year. 15 divided by 72 = 20.83%.
So, $72 turns into $100 when SURGE sells out and trades at $1. So, you get a 39% gain on the SURGE itself, PLUS the 15% interest. After 1 year, you would have $115 from a $72 investment which equals almost a 60% gain.
Now......if LEO goes up and LSTR goes to...say....$100, then you could convert your SURGE to 2 LSTR and sell it for $200. That means that your $72 turned into $200+$15=$215 (a 3x) for a downside-protected, dividend paying, "safe" investment.