yo yo, what's good?
figured i'd take a minute to sit down and yap about ACE again. if you didn't know, 
lately, i've seen people talking about the ponzinomics of unbacked stablecoins, but I’ve been deep diving into something different... i’m talking about ACE. it's the newest stablecoin that you've likely never heard of, so i'm here to fill you in on some of the details. it could be the catalyst to propel the LEO ecosystem far and wide for a lot of reasons.
Not just another stable
most stablecoins are just a place to store value in a safer environment. instead of being subject to market volatility by holding something like the HIVE token, people often park funds in stablecoins like USDC or USDT. that's really all you get out of them, though aside from some platforms offering a tiny yield to custody your assets. ACE is a little bit different, though... as it offers real yield generation and distribution to stakers. there's a pre-sale going on right now that i encourage you to research and make your own decision about participating. i'm just here to give you my take.
The 50/50 Pre-sale Model
- 50% to the PSM (peg stability module): half of the money goes straight into reserves (USDC on Base and HBD on Hive). this is what keeps the floor solid and ensures you can always swap from ACE to HBD or USDC
- 50% to Perma-Staking LEO: this is the part I really love. the other half is used to buy LEO off the open market and "perma-stake" it. this removes millions of LEO from circulation forever, which is huge for the ecosystem and dries value to the token
Where the "Real Yield" Comes From
that 20% APR isn't magic money magic internet money, fam. it comes from real revenue, unlike the yield for the majority of DeFi products
- Borrowing Fees: borrowers will pay an 8% stability fee to borrow ACE against their LEO after the launch of LEO Lending. this is super hype for long time holders. this is an 8% annual fee paid to the treasury, helping fund operations, rewards, and maintaining the protocol's overcollateralized stability. this fee ensures the lending system remains secure and sustainable, reducing risks like defaults and encouraging responsible borrowing
- The 2% Swap Fee: every time someone uses the PSM to swap between ACE and USDC/HBD at a 1:1 ratio, the treasury earns a 2% fee, driving real revenue into the PSM. this fee is taken from the swap amount automatically and is used to reinforce the peg, fund operations, and supporting LSTR's LEO per share. this 1:1 swap mechanism opens doors for users to instantly convert ACE to USDC and then pay for stuff through the Base app. instant access to liquidity across chains, and into the real world because of Base' deep connections
- Market Making: the LeoStrategy treasury is out there acting as a market maker, grabbing fees and arbitrage spreads across all of their assets. TTSLA, TNVDA, TGLD, LSTR, SURGE... all deployed across different chains in different pools with their own arbirtrage opportunities. because they provide liquidity in all of these different pools that are constantly trading and generating fee revenue, they earn a share based on the size of their liquidity holding. this gives people liquidity to trade with low price slippage and earns money for the treasury
ACE vs. The OGs (DAI, FRAX, LUSD)
how does ACE look against other popular stablecoins? enjoy my poorly made and probably poorly researched chart
| Feature | ACE Stablecoin | DAI (Sky Protocol) | FRAX (v3) | LUSD (Liquity) |
|---|---|---|---|---|
| Vibe | Community Alpha | Institutional Bedrock | Technical Complexity | ETH-Only Leverage |
| Backing | LEO, USDC, HBD | ETH, USDC, T-Bills | USDC, Treasuries | ETH Only |
| Peg Logic | Hard-Peg (PSM) | Soft-Peg (Rate tweaks) | Algorithmic Ops | Stability Pool |
| Yield | 20% APR | 1% - 8.75% (DSR) | 5-10% (sFRAX) | Pool Rewards |
Why ACE wins: DAI is great, but it's increasingly tied to centralized stuff like USDC just to keep its peg. plus the transition to Sky and Sky USD is kinda confusing and i don't really know the details of it, nor do i have the time to deep dive it. FRAX is cool but... Ethereum only which is a crazy limitation to have in 2026. ACE captures the actual energy of the InLeo economy, giving us that 20% yield because it’s tapped into the LEO ecosystem with real revenue. the others just don't measure up, aside from the fact that they have been around a bit longer to test stability
Too many options: there are hundreds (or at least it seems that way) of different stablecoins on the market, all catering to different types of users and different platforms. this creates its own problems, though. it's hard normal people to understand what they are, what makes them stable, and why they're a better alternative to fiat. you've got PYUSD from paypal, USD1 from the World Liberty Financial, USDC from Circle, and the list goes one... but what none of them have to offer is a suit of DeFi products that drive demand to them like ACE does. the really popular ones mentioned here are also extrememly centralized and can be censored, regulated, and all the other shit that we don't like
The Struggle
with pretty much any crypto asset come risks and limitations. specifically with stablecoins that attempt to do different versions of algorithmic stability. anyone remember Terra USD (UST)? steady lads...
- Death Spirals: the biggest fear is LEO tanking and causing ACE to go into a "death spiral" similar to what happened with UST. the difference is that ACE uses a 150% over-collateralization ratio and a 24-hour moving average for liquidations. this gives the protocol a massive 50% buffer to handle a crash without everyone getting completely rekt and hoping for the best. not sure what this means? it's pretty simple. the underlying asset that backs the stablecoin crashes significantly, driving users to panic and redeem stablecoins and adding downward pressure to the market. this could lead to liqudiations and trigger a 13% liquidation fee on borrorwers, and potentially a complete de-peg from the $1 price
- Transparency: no one likes "black box" management, hidden balance sheets, and manipulated data. that's one reason i really like the Apex AI copilot and the LeoStrategy dashboard app. these tools give you real-time access to the treasury stats so you can see the 150%+ backing for yourself at any time, and even ask questions about it
The Road to LEO Lending
right now, we're on a mission to hit that $500,000 goal to sell out the ACE pre-sale. why? because once we hit 100%, the LEO Lending platform officially launches. that’s the catalyst that creates permanent demand for ACE because borrowers need it to pay their fees. at the same time, ACE becomes the primary liqudity asset for all LeoStrategy assets across all pools
ACE will also become the premiere liquidity asset for the entire LEO & LeoStrategy economy. ACE will become the #1 LP'd asset for:
LEO
LSTR
SURGE
TTSLA, TGLD & TNVDA
plus, ACE is cross-chain. it’s on Hive Engine and will also be deployed on Base. this is the bridge to outside capital for the new stablecoin and potentially the bridge for mass onboarding into the LEO ecosystem. as ACE pre-sale sells out and more people become aware of it, the entire ecosystem will benefit in a ton of different ways. 8% fees on borrowing, 2% fees on PSM swaps, arbitrage, market making... and who knows what else will come
Final Verdict
if you're looking for a transparent, over-collateralized way to earn 20% yield without the risk of market volatility, ACE is the play. between the current 6% presale discount and the ecosystem perks like the Apex AI, it's a no-brainer for the builders and holders among us. even if you just want to bank the instant profit from pre-sale price to $1 price, it's a solid move. ACE holders are already receiving yield as of yesterday!
it's a long road to the end of the pre-sale, and i sincerely hope volume picks up. there's going to need to be some serious marketing to make it there, i believe.
anyway, as always...
NFA, GLHF
peace