If this is the first time you have heard of this token, here is a brief FAQ to get you upto speed.
TTSLA: Tokenized Tesla (TSLA) FAQs
1. What is TTSLA?
TTSLA is a synthetic token that tracks the price of TSLA stock at a 1:100 ratio (e.g., if TSLA is $420, TTSLA aims to be $4.20).
Exposure: Provides 24/7 exposure to TSLA price without needing a traditional brokerage or custody of actual shares.
Collateral: It is over-collateralized by LEO tokens that are permanently bought and staked on LeoStrategy’s balance sheet. This collateral is held in a public, transparent vault.
No Redemption: You cannot redeem TTSLA for actual TSLA shares or the underlying LEO collateral. Its value is maintained by policy and market forces.
2. How the Peg Works (Policy vs. Algorithm)
Unlike many stablecoins or pegged assets that use fragile "mint/burn" loops, TTSLA uses a predictable rate policy to maintain its 1:100 peg to TSLA.
Mechanism: It mimics a central bank's interest rate policy, adjusting the dividend yield (APR) weekly to encourage market behavior.
If TTSLA trades BELOW peg: The dividend yield (APR) is automatically increased to attract buyers and push the price up.
If TTSLA trades ABOVE peg: The dividend yield is kept at the baseline 3% APR, and LeoStrategy can strategically issue new TTSLA to meet demand and push the price down.
Defense Mode: If TTSLA deviates by more than 10% below the peg, the policy activates optional staking locks with bonus APR to reward long-term holders and reduce circulating supply.
3. Key Benefits for Holders
24/7 Exposure: Trade TTSLA anytime, without being limited by traditional stock market hours.
Yield Generation: Traditional TSLA stock pays no yield. TTSLA offers a baseline 3% APR (with potential hikes during peg defense).
Security & Transparency: Backed by permanently held, publicly verifiable LEO collateral.
Asymmetric Optionality: Holders benefit from TSLA price performance plus the potential appreciation of the underlying LEO collateral, which strengthens the backing over time.
4. Capital Structure (Liquidation Priority)
In the unlikely event of a major system liquidation, TTSLA holders have a specific claim priority over the LEO collateral:
SURGE holders (senior claim)
TTSLA holders (secondary claim)
LSTR holders (equity claim)
That's it. Happy investing in the LEoStrategy Ecosystem
✍️ About the Author & The INLEO Community
🙋♂️ Author: Shortsegments
This post was written by @Shortsegments, an author who has been covering cryptocurrency, blockchain technology, decentralized finance, Bitcoin, Ethereum, and digital ledgers for seven years.
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TTSLA is performing amazingly by maintaining it's peg, which is a good sign for investors
#hive #posh
Tesla is the future of cars and I am so sure it's just a matter of time. We will see it dominate the world soon
The over-collateralization and peg system also make it feel more reliable. It’s nice to see how LEO tokens are used to keep everything stable. Overall, a simple and smart way to get exposure to Tesla in the crypto world.
That is a good explanation about TTSLA
A baseline 3% APR for TTSLA offers a good yield