RE: LeoStrategy Token Buybacks | Re-Pegging After a 50% BTC Drawdown
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All yield is folded into Buybacks effective immediately. This also resolves an issue we've had with the daily RWA yield payouts. This will lead to a larger and more drastic recovery initially as that yield is folded into equity
For example, RWAs will start recovering extremely fast. Trackable via https://leostrategy.io/recovery
Thank you for sticking with us as we continue to iterate toward a better model. This new approach will quickly re-peg the assets by using yield to buyback and permanently stake these tokens off the market. Then the RCBF's operations will be expanded to handle more fluid conversions (think: HBD Conversions but more robust) and maintain the pegs continuously while offering stablecoin yield as we have been
So, you are solving Leostrategy's liquidity problem by taking away ours. Yield we were budgeting on receiving are now not coming. Instead you are taking the money you owe us and putting it on your own balance sheet. Um, I get the theory behind it, but I'm not a fan.
What happens to "bonus" yield we locked in "for life" when we bought up big in the pre-sales?
i was thinking the same thing, somehow this smells fishy…
You got khaled
No, the stablecoin yield that was being paid is temporarily diverted to purchase the tokens and permanently remove them from the supply by holding inside the RCBF where they can never be removed
Once tokens are re-pegged, stablecoin yields resumed. This is a built-in mechanic for periods of sustained downturns
As far as yield for bonuses is concerned: the yield is still being paid, so the bonuses are still being earned. Yield is temporarily diverted to buybacks. Not permanently gone. Not even shut off. Please read the full post.