RE: LeoThread 2026-04-20 20-44
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I think for SURGE they should just turn the yield back on. The whole buyback idea is great in theory, but I doubt they will be able to materially keep the price up. Buybacks do ensure that @leostrategy will get more of the future yield (if they ever turn it back on), but this will be at current holders expense.
I am a bit more ambivalent about the RWA's and not sure exactly how to think about approaching those at this time. If it were me personally I would just buy them all back at the original HIVE price and go back to the drawing board. I doubt they will do this though.
Turn the yield on SURGE back on, buyback RWA's, and focus on making ACE a better stablecoin with profit opportunities for them.
If their current plan works to get the price back up, I will admit I was wrong, butI am skeptical at this time.
I don't think they have enough assets or revenue to pay the yield sustainably right now. For SURGE they owe 500,000 usd *15% = 75k per year and have assets of around 125k usd on their website - not sure when last calculated by them.
Likely correct. ☹️
Yeah and I guess if the $ Leo price recovers and /or revenue increases in $ terms then the collateral behind the debt could improve in the future.
Hope so!