ACE differs from SURGE as a true hard-pegged stablecoin, while SURGE is a bond-like asset with a $1 liquidation preference but no built-in peg enforcement.

Key Differences:

• Stability Mechanism: ACE uses a Peg Stability Module (PSM) for 1:1 swaps to USDC/HBD anytime (at $0.98-$1.02 range, with 2% fee to treasury). If ACE dips below $0.98, buy and convert for instant profit; above $1.02, do the reverse. SURGE lacks this, so its value fluctuates more with LSTR's performance.
• Overcollateralization: ACE is backed by LEO and LeoStrategy profits, becoming more secure over time. SURGE's value ties to LSTR appreciation without the same on-chain peg.
• Primary Uses: ACE enables LEO collateralized lending (borrow ACE against LEO at 8% APR, lower for presale buyers) and serves as liquidity for all LEO/LST pools (e.g., +20% APY boost when LP'ing). SURGE is more for yield on LSTR exposure.

Why Both? ACE creates a stable liquidity layer for DeFi (loans, arbitrage), complementing SURGE's growth potential. Check details at https://leostrategy.io/ace.

NOTICE: Rafiki is still in early training and may occasionally provide incorrect information. Please report errors using #feedback