For months the LeoStrategy team has been working on a handful of projects simultaneously. Three of them are synergistic and required one for the other. These 3 projects will forever change the way you use the $LEO token economy:
- App - The LeoStrategy Command Center (launched yesterday) -> https://leostrategy.io
- ACE - Overcollateralized Stablecoin (launching right now) -> https://leostrategy.io/ace
- Lending -> Collateralize Your LEO for Onchain Stablecoin Loans (launching with ACE) -> https://leostrategy.io/ace
TLDR; Links:
LeoStrategy Command Center is Now LIVE
ICYMI we launched the LeoStrategy Command Center which lets you track, manage and analyze the entire LEO & LeoStrategy economy.
There is a lot to digest, so head over and discover each page for yourself -> https://leostrategy.io.
Introducing Ace
Today, we couldn't be more proud as we unveil ACE which is the massive key part of our 10M/10M plan to accumulate 10M $LEO on our balance sheet.
Today, LeoStrategy holds ~5M LEO on our balance sheet. We have been steadily accumulating LEO. Large raises like LSTR and SURGE (and next with ACE) have led to large and fast accumulation of LEO which led to a rapid price increase for the LEO Token. Smaller raises (TTSLA, TGLD, TNVDA) allowed us to accumulate consistently as we built our app, treasury and launched the RWA model which allows us to tokenize Real-World Assets and profitably launch them onchain with our Market Maker model.
What is ACE?
ACE is an onchain, overcollateralized stablecoin. It is a key part of our LEO Lending model (more on this later).
How is it Stable?
ACE's design is inspired by DAI which is the stablecoin used by the Sky DeFi lending protocol. One of the oldest decentralized algo-stablecoins on the planet.
ACE uses a similar "PSM" model to govern the stablecoin's 1 ACE = $1 peg. PSM stands for Peg Stability Module and once ACE is live, anyone can use the PSM to convert ACE to USDC (or HBD) or USDC (or HBD) to ACE.
This two way conversion mechanism creates tight pegging rules for ACE. The conversion fee is 2% and this 2% conversion fee is kept by the LeoStrategy PSM Treasury. This is considered treasury income and increases the health of the entire system by taking more ACE off the market and burning it.
For example, if ACE trades below $0.98 in the open market, anyone is incentivized to:1
- Buy ACE
- Use PSM swap to sell ACE for USDC or HBD (1 ACE always = 0.98 USDC or HBD)
- Instantly receive a profit paid as USDC or HBD
How is it Different Than SURGE?
SURGE is an onchain bond which represents a bet on the future price of LSTR. As LSTR rises, the SURGE price rises. SURGE has a liquidation preference of $1 but it is not a stable valuation coin. Meaning: SURGE is intended to have this liquidation preference in the event of LeoStrategy dissolving but it does not have a conversion mechanism to create a hard peg to this value.
ACE is different as you can use the PSM to instantly convert to/from stablecoins. This same PSM setup is used on DAI and has been successfully used for many years on one of the largest DeFi platforms on the planet.
The PSM creates a market environment where ACE is always +/- $0.02 with $1 per ACE.
If ACE trades over $1.02, then you should swap USDC (HBD) for ACE, then sell the ACE for USDC (HBD) and make an instant profit.
If ACE trades below $0.98, then you should buy ACE and convert it to USDC (HBD) using the PSM on https://leostrategy.io/ace.
What is the Primary Use Case of ACE?
The primary use cases of ACE:
- LEO Collateralized Lending
- Liquidity for all LEO & LeoStrategy Assets
ACE is designed similarly to DAI which is utilized for collateralized lending on WBTC, ETH, etc.
When ACE is out of presale, you will be able to deposit LEO and receive ACE as a collateralized loan. You can then convert ACE to stablecoins to use for whatever you want (or LP it for yield). When you are done with the loan, pay back ACE to the Lending Vault and receive your LEO back.
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
ACE will become a liquidity layer that ties all liquidity pools together and allows more cross-chain arbitrage to occur across the pools (while enabling cheaper swaps for users). This massive liquidity is important for ACE as it must be extremely easy to buy/sell/trade for the health of the LEO Lending Protocol.
LEO Lending
As mentioned above, LEO Lending is the primary use case of ACE. This post is intended to introduce ACE and we will keep the focus on the token itself however it's worth mentioning some key stats about LEO Lending (which is enabled by the launch of ACE)
- ACE is used as the settlement asset for LEO Lending - giving it immediate utility in the Lending economy
- When a loan is originated, a small origination fee + daily accrual of APR Interest occurs on any Lending Vault. This APR is 8% (unless you buy the presale and lock-in lower rates)
- Liquidation is autonomously handled onchain via Oracles and a 24hr moving average price feed
- When a user closes a lending vault, they must buy ACE and deposit it (along with accrued interest) in order to retrieve their original LEO position (giving ACE continual demand)
Presale Benefits
If you buy the ACE Presale, you'll unlock 4 major benefits:
- Higher Lending Cap
- Exclusive 20% APR (Paid Weekly)
- Lower Borrowing Fees
- Early Feature Access
Explore these benefits by going to https://leostrategy.io/ace and clicking on each Diamond tile.
PSM Reserves and LEO Buying
555,555.555 ACE is available in this presale at a price of $0.90 per ACE. This price will be dynamically adjusted throughout the presale to maintain the $0.90 presale price.
The proceeds will be split 50/50:
- 50% to build the PSM Reserves in both USDC & HBD
- 50% to immediately purchase $LEO and perma-stake it on the LeoStrategy balance sheet
PSM allows users to convert ACE into USDC (HBD) or USDC (HBD) into ACE. The PSM is effectively a built-in conversion mechanism that maintains the hard peg of $0.98 - $1.02 USD per ACE.
To seed the liquidity in PSM, 50% of the presale will be held in the PSM Treasury wallet as HBD / USDC stablecoins. The PSM will HODL this capital as seed liquidity in the:
- ACE-USDC Liquidity Pool (Base)
- ACE-SWAP.HBD Liquidity Pool (Hive-Engine)
When a user converts ACE (or vice versa) it is pulled from #1 first and #2 second and sent to the user:
- From liquid reserves
- From the LP Position (if no liquid reserves are available)
This allows the PSM to productively use the capital as seed liquidity, earn LP Fee Revenue and maintain liquid stablecoins to conduct PSM conversions.
All of the above are profitable operations for the PSM:
- PSM Conversions: When someone converts, the PSM earns a 2% fee on each conversion
- Open Market Trading: Any unused capital for conversions is LP'd and earning LP Yield every time open market swaps occur
LeoStrategy as an operative project then earns additional profits by Market Making all the ACE-based Liquidity Pools (which has a dual impact of driving up LP Earnings by the PSM).
Increased trading, conversion activity and swaps leads to increased Market Maker Profits for LeoStrategy which leads to additional $LEO Purchases and therefore; greater over-collateralization of LEO on LeoStrategy's Balance Sheet.
The $250k portion of raised capital (100% of which will go to purchasing LEO) will be used to immediately buy LEO as it is raised. At the current LEO price, this will buy ~5,000,000 LEO and add it to LeoStrategy's perma-stake treasury. In the past, when we have raised signficant capital like this, the LEO price has increased signficantly. Even if our average purchase price is $0.10, that would still be 2.5M LEO added to our balance sheet.
Any LEO added to our balance sheet both from the raise and from ongoing Market Maker profits will lead to increased overcollateralization of ACE (more health for all LeoStrategy products which are cross-collateralized by our balance sheet).
ACE is Robustly Overcollateralized
Run all the math on ACE and you will see that it is:
- Robustly overcollateralized
- Gains health (becomes more overcollateralized) as time passes
- Generates ongoing profits for PSM Treasury
- Generates ongoing profits for LeoStrategy's daily LEO accumulation
The ACE economy generates massive inflows from:
- Market Maker profits (every cross-chain LP & Order Book is market made by LeoStrategy's MM)
- PSM Conversions (2% earned on each PSM swap)
- 8% APR on LEO Collateralized Lending
ACE is a Revolution in Onchain Finance
ACE is the revolution we have all waited for in the LEO Economy. Many of us have wanted LEO Loans for years. Ever since the LEO Team originally teased the idea years ago.
Collateralized Lending on LEO has officially arrived. With ACE, we have created an economy where this is not only possible but it is profitable. As with all LeoStrategy operations, 100% of the profits flow to purchasing $LEO and perma-staking it on our balance sheet. Every LEO we buy off the market will never return to the market. Every LEO added to our balance sheet over-collateralizes ACE and all of the other LeoStrategy Suite products.
Join us on this journey of democratizing financial knowledge and access (the true LEO Mission statement!) as a 2nd layer economy building on LEO.
nothing on this page or related to LeoStrategy should be viewed as Financial advice. All is for entertainment purposes only. DYOR.
You can find all the presale details, live calculator and live stats tracker on https://leostrategy.io/ace. You can also enter your username to see your presale tier status and the benefits you've unlocked.
please give the UI a few hours to update with live data.
How to Buy ACE
You can now buy ACE in two ways:
- On TribalDEX (or any Hive-Engine interface) -> https://tribaldex.com/trade/ACE
- By directly sending HIVE / HBD to
(great option for those who don't want to route through swap.hive)
Option 1 is instant as it is from the market and option 2 is manual (ACE sent within 24 hours of receiving)