@rainbowdash4l "@leostrategy (1/2) Could you shed some light on ..."

rainbowdash4l in #leofinance • 9 days ago

@leostrategy (1/2)

Could you shed some light on the max supply? With 12k lstr sold you hold 200k leo.

9 days ago in #leofinance by rainbowdash4l

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khaleelkazi 9 days ago

I think their 1st blog post talked about this

The initial sale is 100k LSTR and 100% of what they raise from that will buy $LEO

Then they'll use that as collateral to buy more LEO by raising capital from IRL Investors who are willing to use the LEO POWER as collateral against the loans with no liquidation price

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rainbowdash4l 9 days ago

yeah I agree! But with leverage into play you would expect the number of LEO that could be purchased with 1 LSTR token would increase. Right now 1 LSTR gets you +/- 17 LEO.

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rainbowdash4l 9 days ago

Without leverage 1m x 17 leo = 17m leo already.
If leverage comes into play I don’t understand the max supply (as we won’t need that)

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rainbowdash4l 9 days ago

if the ratio leo/lstr increases the investment is more profitable. If the ratio decreases the investment becomes less profitable compared to just buying leo yourself.

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rainbowdash4l 9 days ago

Therefore you would expect a leverage >2x but that way you would also expect a max supply of 1m / leverage ratio (assuming 17m leo goal

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rainbowdash4l 9 days ago

(2/2)

Under what conditions would you reach 1m released LSTR? As to me it is confusing. Either there is no need for leverage (and you set the new price on LSTR on the same leo/lstr ratio. Or the ratio would decrease hurts investors. Tnx!

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leostrategy 6 days ago

We will operate identically to MSTR. The supply is 100k. We can release new shares to raise more capital to buy more $LEO

That being said, we will only do so when we can create instant accretive value for shareholders

If you want to see a real world example, google "ATM Strategy Microstrategy" and you can see how they are using at-the market offerings to buy more BTC

We will do the same ATM strategy to buy more LEO in the future

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rainbowdash4l 6 days ago

Thank you for your reply! <3

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leostrategy 6 days ago

Happy to clear it up!

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