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RE: LeoThread 2025-07-24 09:14

in LeoFinance3 months ago

My thoughts (2/2)

  • In case loan is not repayed, LSTR might need to sell (which they can't)
  • This could be offered without LSTR aswell with the same issues - unless $ value loan < $ NPV collateral period.
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If the loan isn't repayed, LSTR has the sLEO

They could either HODL it or sell it. Likely HODL it is the best option and simply earn yield from the sLEO and assimilate it to their stack

Without LSTR, we don't have a "fund" to back the new stablecoin with.

LSTR issues LUSD (stablecoin) backed by the LSTR fund. It is primarily backed by the loans via sLEO collateral but the secondary backstop is that LSTR holds a massive fund value and backstops the loans with this as "Credit" as well

This increases user confidence vs. offering it without LSTR

thank you for the clear explaination!