The TGLD Presale is OVER | Yield Boosts, Liquidity and Post-Sale Strategy

The Tokenized Gold (TGLD) presale is now over. This presale was our most limited presale ever and it was one of our best performing launches since the inception of LeoStrategy.

We took lessons from the prior launches and developed better mechanics for the TGLD Presale and post-sale that we believe will lead to significantly better peg stability directly after launch.

It's been nearly 10 hours since the presale ended and so far, the TGLD Price is holding right at its pegged value of 1:100 GLD:TGLD.

GLD trades for $380.20 and TGLD is currently trading for $3.79.

LeoStrategy's RWA Design

LeoStrategy tokenized RWAs are designed to trade in lock-step with their Real-World Asset counterparts.

In this case, TGLD mirrors SPDR GLD. The goal of LeoStrategy RWAs is to always be range-bound with these assets within a ~2.5% spread.

Market volatility can deviate these spreads, but in long timeframes, the pegs will always hold.

We now have two RWAs live:

1. TTSLA
2. TGLD

These RWAs allow crypto-native users to speculate on TSLA & GLD. It also allows you to earn daily yield if you purchase and HODL the RWAs.

TGLD's Presale Mechanics Post-Mortem

LeoStrategy's presale of TGLD had a vastly different design from the TTSLA Presale. We took a lot of data from the SURGE & TTSLA Presales and utilized that data to revamp our presale mechanics.

We believe we have landed on a model that will lead to vastly superior peg stability right after a launch ends. We call this the "post-sale pricing".

While SURGE & TTSLA encouraged a lot of "flippers" to buy and sell the token right before/after the presale, the TGLD presale changed the dynamics to rewarding "HODLers" who wanted amplified, locked-in yield boosts that will last as long as you stay staked or LP'd. If you un-stake or un-LP, then you lose your yield boost but then you can sell TGLD for a profit from the presale.

This creates a low float on TGLD tokens while encouraging buyers to HODL for Yield instead of dumping for a quick profit on the presale discount.

TGLD was sold with a 10% discount to the pegged value of 1:100 GLD:TGLD. This means TGLD presale buyers bought in at an average of $3.375 and they were awarded an instant value profit of 10%.

This profit has since risen as the price of TGLD has tracked the price of GLD up to $3.79. If you bought the TGLD Presale, you now have a 12.2% Profit on your purchase.

Now that the presale is over, you have a choice:

1. HODL as staked TGLD for yield (or LP'd if you're on Base)
2. Power down (or un-LP) and sell for the quick 12.2% profit

Some may opt to power down but most will opt to keep their enhanced yield. If you think about it, the value proposition of hodling for the yield boosts which are now grandfathered in and permanent is the best long-term ROI.

The new presale mechanics encourage people to buy the presale and simply HODL for yield.

Then new & existing users can come in and speculate on TGLD & TTSLA to speculate on their RWA-equivalents.

This is exactly how & why we built the LeoStrategy RWAs. These assets are intended to be speculated on. You're meant to trade them around their RWA counterparts. We also added other vectors & metrics that encourage active participation/trading:

1. Correlation (Deviation) to the 1:100 peg (if correlation expands, buy it and speculate on correlation compressing)
2. Weekly Rate Policy - yield is paid daily and yield rate (APR) is set weekly. The weekly APR is set based on a 3D Moving Average of the correlation for each specific RWA. Users can speculate on this because it is fully transparent, onchain and predictable

TGLD Liquidity

Another important upgrade for the Tokenized Gold (TGLD) post-launch phase is the increase in initial liquidity relative to the presold amount.

With our new RWA Presale framework, we now launch tokens with vastly more liquidity after the sale concludes.

Since a majority of tokens are staked or LP'd and earning the grandfathered yield boosts; most buyers of the presale will not want to unstake/un-lp and sell TGLD. Even if some do, the increased liquidity is better equipped to absorb this volume quickly and quietly and allow open market peg correlations to take hold.

If this all sounds complicated, don't worry. We've made it super simple.

Just track @tgld.yield (or @ttsla.yield) on INLEO Threads. These accounts post every single hour and update you on the current:

1. Stock price (underlying) - TSLA or GLD
2. Token price (sRWA) - TTSLA or TGLD
3. Deviation - real-time correlation of GLD:TGLD (or TSLA:TTSLA) to the 1:100 peg
4. 3D Moving Average - the 3D Moving Average of the deviation (which guides the next rate policy meeting every Monday)
5. Current APR - the current yield rate that the RWA is paying to hodlers based on the 3D Moving Average (weekly rate policy)
6. If any Boosts are active / how to get them

Status of SURGE & TTSLA Reaching Pegged Valuations

SURGE's floor value is $1.

TTSLA's pegged value is 1:100 TSLA (currently $417.78 so TTSLA should be ~$4.17).

However, the current prices of SURGE & TTSLA are:

1. SURGE = $0.65
2. TTSLA = $3.55

The timing of when SURGE & TTSLA went to market was quite unfortunate. BTC was over $120k at the time SURGE's presale ended. The crypto markets tanked and since SURGE is still technically in crypto, it has some level of correlation to the rest of the market. Same goes for TTSLA.

We also believe our initial presale design favored flippers rather than HODLers. We believe we have fixed this with the TGLD Design and we will use this same design going forward.

This all being said; we don't like to blame the broader market. The previous presale designs could have been vastly better. We're iterating and we believe that the new design will lead to faster peg events.

We're seeing this play out in real-time with TGLD's post-launch pricing.

For SURGE & TTSLA: they are still trading above the average presale entry price. This means that ALL presale buyers of these assets are profitable. These assets have positive drift to their peg: which is a fancy way of saying that each day, we can see them getting closer to their pegged values of $1 and $4.17; respectively.

As the open market dictates, we will eventually see them reach their peg. The post-sale mechanics needed to be improved and now they are going forward. This doesn't mean SURGE & TTSLA are flawed. It just means our presale mechanics have suppressed the velocity of them reaching their peg. They will reach their peg soon enough and of that we are 100% confident.

What's Next for LeoStrategy?

LeoStrategy continues to scale our strategy of building a LEO Standard. We are building asset markets that are backed by LEO, for LEO.

We use 100% of the profits from the presales + Market Makers to buy additional LEO and add it to our balance sheet each day.

This allows us to continually scale our balance sheet which then makes every single asset in our stack more valuable (since they are all backed by the LEO on our balance sheet. More LEO = more over-collateralization).

LeoStrategy has now launched the TGLD Market Maker and this marks our 5th cross-chain Market Maker that is now LIVE and profiting for the fund:

1. LEO
2. LSTR
3. SURGE
4. TTSLA
5. TGLD

Next:

We are currently developing a whole new type of Market Maker. This MM is an order-book market maker that will bring deeper liquidity and more efficient trading to the Hive-Engine order books for:

1. LEO
2. LSTR
3. SURGE
4. TTSLA
5. TGLD

It does it in a super unique way and one that leverages the Moat we have built on cross-chain trading pairs. This means that LeoStrategy can freely operate these MMs without competition on those specific routes because we have a whitelisted-lower fee than other MMs on Hive-Engine.

This means that 5 new Market Makers are about to come online for LeoStrategy. These new variants of Market Makers work synergistically with the other 5 MMs. They are separate but benefit each other and bring deeper markets for users to trade LEO, LSTR, SURGE, TTSLA, TGLD and future asset more efficiently.

LeoStrategy is pushing the boundaries of efficiency with our existing asset stack to become more profitable than ever before. Every day, our MMs generate revenue for the fund. The first pillar is paying out the yield to SURGE, TTSLA & TGLD. Profits are then used to buy LEO and perma-stake it on our balance sheet.

This allows LeoStrategy to operate and scale our model in perpetuity. The scaling of our entire asset stack leads to additional profits. It is a self-fulfilling flywheel.

First TGLD Payout!

The first TGLD payout is TONIGHT. It occurs at the exact same time as the TTSLA Payout.

If you want to manage your payout, you can see how much you're going to get by using the "!TGLD Me" command.

You can also change your yield preferences:

1. HBD (or USDC if you're on Base) is the Default payout preference
2. TGLD (autocompound and earn TGLD as your payout preference)
3. LSTR (earn equity shares in LeoStrategy as your payout preference)

On Hive-Engine, These Commands Are:

1. !TGLD HBD
2. !TGLD TGLD
3. !TGLD LSTR

On Base, These Commands Are:

1. !TGLD Base USDC
2. !TGLD Base TGLD
3. !TGLD Base LSTR

You can change your yield preference at any time. We recommend doing it at least 1 hour before the yield payout each night to avoid any disruptions.

Questions? Comment below or #askleo! We are here to help 🦁

Posted Using INLEO