LeoDex's Protocol Owned LEO (POL) vault has a simple and autonomous functionality within the LEO Economy: it has LEO permanently staked inside the sLEO contract on LeoDex.
The POL address earns USDC every single day and autocompounds that USDC back into more LEO by swapping USDC for LEO off the open market. This LEO is then staked as sLEO permanently and leads to continual growth inside the POL Address.
This POL address is a permanent buyer of LEO. The more sLEO it holds, the more USDC it earns. Every USDC is then swapped for LEO and perma-staked.
Over long timeframes, this reduces the float of LEO since it is permanently bidding on the market to buy LEO and remove it from the supply.
Some simple math: if POL owns 10% of the sLEO supply, then it earns 10% of all LeoDex affiliate fees (daily USDC rewards).
If LeoDex generates $1,000 per day, then $1,000 per day is earned as USDC on sLEO. With POL owning 10% of this, that's $100 per day earned by the POL. $100 per day is swapped for more LEO to add to the perma-staked vault.
You can track all of this in real-time via https://leodex.io/leo. At the bottom of the page, you'll find a "Protocol Owned LEO" section where it shows you the current holdings and earnings of the POL Address. As it earns and stacks more sLEO, these figures will grow. It also projects the future growth of the POL Vault based on the previous earnings.
As LeoDex earns more swapping volume, the POL grows naturally as does the utility to stake LEO for an asset that is:
- Deflationary (30M Max Supply that is reduced daily by LeoBridge Inflows)
- 0 Block Rewards
- Growing in value from POL Buybacks permanently bidding LEO and reducing float by perma-staking
- Utilized for features and benefits on INLEO + LeoDex simultaneously and a core asset of the LeoAI Model
Enjoy this clip where we talk all things POL!