@khaleelkazi's thread
I just had a thought for how @leostrategy could potentially play a key role in LEO-Collateralized Loans. An official partnership between LeoDex and LeoStrategy
I have a design for how it would work and it would drive revenue into LSTR (from yield on the collateralized loans). 100% of that revenue earned by LSTR would purchase more LEO and increase the fund value
In simple terms:
- User deposits sLEO as collateral
- User gets stablecoins, backed by LSTR's fund value
- When user is done with the loan, they pay back the stablecoin
Throughout the duration of the loan, LeoStrategy earns the sLEO yield from their collateral deposits and buys LEO with it to add to the main fund. This increases the fund's holdings of LEO and the value of LSTR which further secures the total outstanding loan value
I think this could be a killer idea that drives more exogenous capital into LEO purchases. It also helps address the need of instant liquidity without needing to sell your LEO
Thoughts?
