RE: LeoStrategy Token Buybacks | Re-Pegging After a 50% BTC Drawdown
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I am not satisfied with this strategy because you just brought the strategy all of a sudden and you didn't ask the opinion of the investors.
Was price depegging fault of mine? Why should I pay my yield for repegging? I would love to get yield instead of price repegging.
As strategy already came I want to know how much time it will take to re pegged. 1 months or 2 months?
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Your yield is getting paid directly into the tokens. This is how rebased yield works (many tokens in DeFi do it).
This is a temporary measure to re-peg assets. The net effect will be value appreciation from the current price that is worth multiple years of earning income while watching the tokens decline in price
This is in direct response to token holders asking what we will do about the consistent deviation of tokens
After a few weeks/months of this being in place and re-pegging the assets, then yield being flipped back to liquid rewards; nobody will be complaining
But I guess many wouldn't accept the idea if they knew their yield will be used for it.
For me it's loss. Now I need to sell certain amount of SURGE on weekly or monthly basis which wasn't in my plan.
ok. Let me see few weeks about the price recovery.
It is mathematically impossible to be a "loss" as the yield is used to buy tokens in equal proportion off the market
Your SURGE (or other RWAs) become equally more valuable in relation to the yield that would've been paid
If for example you were due $1,000 in yield over the next 2 weeks and that $1,000 is instead used to purchase SURGE off the market and permanently remove it, then $1,000 in equity gain occurs on your SURGE; then you are still net up $1,000.
This will be amplified beyond the yield buybacks as the market re-pegging event will be accelerated by people acknowledging the re-peg is happening.
Let these changes sit for 1 week and you'll see. A lot of reactions right now to something nobody has let marinate for even 1 cycle of yield
I disagree for SURGE. SURGE had no guaranteed peg.
One experiences a realized loss when the yield is diverted. The money does not hit their wallet. Then one experiences an UNrealized gain with the buybacks. To realize that gain of "multiple years of earning income" one must sell. The problem is that everyone is going to be jumping to that side of the boat as well. Price goes back down.
I fear that this is not going to do what is planned, but fingers crossed.
I bought the token for the "potential" of price appreciation and the guarantee of yield while I waited on that potential. That was it's design was it not? Just because the price depreciates doesn't make it a good idea to change midstream.
On the RWA's sure. Not on the preferred shares. They are not the same.