We saw the successful launch of wLEO 2.0. This was something that many were awaiting since the hack occurred about a month ago.
One of the most valued benefits of the creation of wLEO is the liquidity it provides to the token. With this, we also can see price appreciation since more people are exposed to the platform.
Even though the re-release of the token is less than 12 hours old, we are seeing arbitrage playing out. This is where a price run on either uniswap or Leodex causes a price adjustment on the other. It ends up pulling the price higher.
Here is the chart from Leodex.io. We see quite a run, putting us close to where we hit before the hack.
Token distribution is something that is vital to the long term success of a project like this. Too many crypto economies are too top heavy. This means the tokens are in the hands of a few whales.
While this is expected in a new ecosystem, over time the goal is to get them to spread out. One of the advantages to Leofinace is the reward pool offers a way for people to accumulate LEO through their efforts.
The reintroduction of wLEO aids in this endeavor. Here is the latest tokeneconomics chart from Leofinance.io.
At present, there is just over 69% of the tokens staked. Just a few days ago, this was over 80%. Only staked tokens have an impact upon the reward pool. Thus, the reduction is providing added benefit to those who kept their tokens staked.
Since much of the LEO that ended up in the liquidity pool was from larger accounts, they reduced their influence over the reward pool. This will only further enhance the distribution as time passes.
There is another piece to this puzzle. As wLEO gets more popular, there will be newer entrants into it. Each Liquidity Pool provided put up not only LEO but ETH. LPs are a delicate balance between two tokens.
As newer buyers enter the market, they come with ETH and purchase wLEO. This moves the swaps the wLEO from the LP providers for ETH. Hence, one will end up with less wLEO yet more ETH.
For those who are simply trading the token, this does not mean a great deal. However, if some of those people do ultimately end up joining Leofinance, they could utilize their purchase of wLEO as an on-ramp.
Either way, LEO (wLEO) will be in the hands of more people.
If we picture this same idea replicated over a number of different blockchains, like EOS, then we can see how the distribution of the token can be greatly enhanced.
It also will likely provide great value to the token since there will be so many different pools to fund.
Whereas other tokens are suffering from too many, LEO is rapidly moving towards a liquidity trap.
It is a much better position to be in.
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