TTSLA is Tokenized Tesla and is the first RWA (Real-World Asset) launched by LeoStrategy. What it represents to me is a massive change in the world order of finance.
LeoStrategy is tokenizing assets, bringing them onchain and doing so in a way that is profitable for the fund. Their model is uniquely designed to give end users the asset exposure they want, while giving LeoStrategy up front + ongoing capital to purchase additional LEO and stake it permanently.
The way this is all set up is deeply fascinating to me as it has the potential to deliver Billions of dollars in Net Economic Inflows (NEI) to the LEO Token Economy.
The Opportunity
We're seeing Larry Fink from Blackrock, Jamie Dimon from JPM Chase and countless other TradFi figureheads stepping into the limelight and talking about tokenizing RWAs and bringing Traditional Finance onto the blockchain.
There is a reason these guys are discussing this: there are Trillions upon Trillions of dollars in assets locked in TradFi that have never been to blockchain land before. Whoever can tokenize them with strategic models is the one who will win billions upon billions of dollars in economic inflows.
Tokenizing finance onchain is the next big thing for finance. Don't mark my words for it.. just look at what the largest figureheads in TradFi are talking about next time you're perusing YouTube.
LeoStrategy has posed an interesting question.. Do we want TradFi billionaires to get richer by being the ones to tokenize RWAs and bring them onchain?
OR
Do we want LeoStrategy to tokenize these assets and generate billions of dollars in revenue that will all get used to purchase LEO on the open market and perma stake it in perpetuity?
I'd like to see all this economic value flow to LEO. How about you?
TTSLA | The First RWA by LeoStrategy, For LEO
Tokenized Tesla (TTSLA) is the first Real-World Asset launched by LeoStrategy. TTSLA represents more than just Tokenized Tesla. It also represents the first live product using LeoStrategy's design for RWA's. They've built a launchpad that can theoretically tokenize nearly any asset and bring it onto the blockchain.
Their model for this is uniquely designed to drive value into the fund and fuel additional LEO purchases. How?
- Each RWA (like TTSLA) is over-collateralized by LEO Held on LeoStrategy's balance sheet
- Each RWA is individually profitable: they generate profits from Market Making across blockchains. LeoStrategy has a unique moat for Market Making as they control the bridging fee and therefore have a whitelist on their Arb bots for lower fees
- Each RWA makes the other pairs (LEO, LSTR, SURGE, etc.) more profitable because they add volatility to the stack (every new RWA has a pool paired to LEO and USDC. Adding volatility to the mix of assets)
- Each RWA generates immediate capital to purchase LEO and add it to LeoStrategy's perma-staked balance sheet
- Each RWA generates ongoing capital from profits. This is used to purchase LEO and add it to LeoStrategy's perma-staked balance sheet every single day
- LeoStrategy only holds one asset: LEO. This is pristine collateral to the fund and they don't need any other assets. For example, to back TTSLA, they simply hold LEO in their perma-stake vault. They don't need to buy TSLA shares to back them under their RWA model (more on this below)
This unique setup creates a profit mix for LeoStrategy. These profits are relentlessly pushed into Additional LEO Purchases.
If LeoStrategy's RWAs are even 0.001% successful, they will drive Millions of dollars into the LEO Token Economy. Anything above that is tens of millions, hundreds of millions and billions of dollars in net economic inflows that fuel LEO Purchases.
With LEO 2.0, we shut off block rewards and put a max cap on the LEO Supply. Only 30M (now 29.5M) LEO exist. LEO is burned continuously whenever a user bridges LEO to Arbitrum, BSC, Polygon or Hive-Engine. This creates deflationary supply pressure while perma-buyers like the POL (LeoDex) and LeoStrategy buy up the supply and reduce float by permanently staking their LEO as sLEO.
I estimate somewhere around 10M LEO is currently:
- Burned
- Locked by LeoStrategy
- Locked by POL
That is 33% of the LEO Supply that cannot be put back onto the market. This figure is growing multiple %'s every single month. What happens as the supply continues to tighten and demand grows from both LeoDex and LeoStrategy's success? I'll let you run the math.
Peg Policy vs Mint/Burn
LeoStrategy has opted to build a Peg Policy model for RWAs like TTSLA as opposed to a Mint/Burn model. This is an extremely important strategic decision. I made a video on this and I recommend giving it a listen if you want to understand more about it.
This decision allows LeoStrategy to stick to their #1 mission: acquire $LEO.
LeoStrategy is a permanent capital vehicle that has a very simple mandate. They generate capital in two primary ways:
- Revenue (profitable operations from Market Making and other means)
- Presale of new assets (launching fixed-income instruments like SURGE or RWAs like TTSLA)
They utilize 100% of the profits from these operations to purchase additional LEO and permanently stake it. By doing this, they drive multiple flywheels. The biggest flywheel is:
- Reducing the LEO Float (every time they buy 1 LEO, that LEO is gone from the market forever and permanently staked in their treasury)
- Increasing LEO demand (every time they raise or generate $1 in new capital, they purchase LEO and fuel demand)
As the supply is reduced continuously (not only by LeoStrategy but also by POL Staking and LeoBridge Burns) and demand is increased continuously (not only by LeoStrategy but also by POL Buybacks and SIRP Buybacks), the LEO Price has only one place to go 📈.
This is obviously all contingent on the success of:
- LeoDex
- LeoStrategy
- LeoAI
- ... the LEO Economy as a whole
As these projects grow in scope and scale, the LEO Economy will grow marvelously. We are on a great trajectory. LEO is up nearly 10x since LEO 2.0 took effect in June. That is including the recent altcoin crash. While all altcoins are crashing, LEO is still up 10x this year. Pretty amazing and this strength is simply an indicator to me that more is to come as these projects scale.
If you want to support LeoStrategy's vision of not letting Blackrock make more money.. instead allowing the LEO Token Economy to be the beneficiary of tokenizing RWAs, then make sure you get some TTSLA to support. I currently have 1,967 TTSLA on HE and a few thousand more on Base.
I am continuing to buy and the presale ends on Friday November 7th. So you've got about 48 hours to get the 20% discount + 2x bonus yield for purchasing during the presale.
Alternatively, you can watch from the sidelines and see how TTSLA performs once its live. Then you can buy after the presale without the discount + bonus yield.
See in you RWA land:
- Search TTSLA on HE -> https://tribaldex.com/trade/TTSLA
- Search TTSLA on LeoDex -> TTSLA on LeoDex