@khaleelkazi's thread
A future LeoStrategy product will allow you to take collateralized loans against your sLEO stake on LeoDex
Imagine you hold 10,000 LEO and one day it is worth $100,000. You want a $50,000 loan and it is 2x overcollateralized. You deposit 10,000 sLEO into the LeoStrategy lending contract and receive $50,000 USD (in a stablecoin)
Then, you can spend or invest or do whatever with the $50k
When you're done, you pay back the $50k and get your 10,000 sLEO back
In the meantime, the loan was 0% APR but the earnings on your sLEO are kept by LeoStrategy as a management fee. 100% of the earned USDC (from payouts on LeoDex) are given to LeoStrategy where they autocompound your USDC back into buying more LEO and staking it on their balance sheet
This perma-staked LEO is removed from the effective selling supply because LeoStrategy can never sell its LEO
Starting to make sense yet?
LSTR is the financial layer of LEO
