LeoBridge Will Send The Price Of LEO Flying

LeoBridge is an application that the Leofinance team is going to roll out. This will be one of the first applications that will allow people to take their ERC-20 tokens (Ethereum) and swap them for BEP-20 tokens (BSC). Essentially, it is a bridge that will assist in the interoperability between the two chains.

This is one of those applications that, if it catches on, it will be wildly successful. It is potentially targeting a very large audience.


Source

Ethereum, as most of us are aware, has the most DeFi activity, at least in terms of TVL, of any chain. The challenge is the fees associated with it. This is opening the door for the explosion of DeFi on BSC. With fees that are pennies as compared to the dollars on Ethereum, this is opening the door for much smaller players. Over the weekend, someone mentioned the ETH fees were $77, compared to about 40 cents on BSC.

We also have the situation where there is not an easy way to move from Ethereum to BSC. Binance tokens are not supported in the United States making it a challenge for people in that country to convert their stuff over. Here we see built-in audience for the application.

So why will this send the price of LEO flying?

To answer the question, we need to understand how the ERC-20 to BEP-20 conversion works.

Basically it looks like this:

ERC-20(ETH)--->wLeo--->LEO--->bLEO--->BEP-20(BNB)

The key is going to be the wLEO and bLEO. There is going to have to be a ton of tokens locked up AND at great value in those pools for this to operate. It is vital to recall that liquidity pools are based upon the value in USD. Since the Ethereum, as an example, will be swapped, it is going to require a lot of wLEO to equate to $2,300 for each Ethereum.

We see the same situation on the other end, although perhaps to a lesser degree.

Of course, there is incentive to have plenty of tokens in each pool since the fees will explode if the application is popular. One of the incentives for many liquidity pools is the fees generated for providing the trading pairs.

The supply and demand equation sums this up nicely. Since there will be a lot of incentive to lock LEO up (in both wLEO and bLEO), the supply of the token on the open market will diminish. At the same time, we can see how demand is increasing since people will want to get involved in the pools to reap a return.

LEO is already a tightly held token. We see the amount staked on chain is already significant. If we see a massive desire to lock the token up, the price, in USD terms, could explode higher. In fact, a higher token price is almost necessitated.

While everyone is obviously looking at the benefit to CubFinance of LeoBridge, it is important for us to not overlook the fact that it is of great benefit to Leofinance. Since the token is going to be woven into the application, in three phases, we are going to see the value expand a great deal.

Once again, we will see liquidity being an issue. This means that the price, in USD terms, really has no choice other than to push upwards. It will add more value to each of the liquidity pools, enabling more transactions to take place.

Many tokens are looking for use cases (sinks). As we can see here, there are two pools that are going to eat up LEO.

CubFinance is already an extremely successful project with near $20 million TVL. It garnered a great deal of attention but we must not overlook the impact upon Hive.

There is a lot going on within the Leo ecosystem and applications such as they are going to enhance the value of everything tied to it. We are seeing already the difference that LeoBridge can have.


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Bang, I did it again... I just rehived your post!
Week 53 of my contest just started...you can now check the winners of the previous week!
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I honestly hope it's done in time. The hype seems to be dying off a little bit as of late on the NFT and DeFi front in terms of new people getting into it and Ethereum is like dead on DeFi compared to Binance so having a bridge would be awesome while fees are stupid high. If Ethereum fixes these fees though it's going to make the bridge kind of pointless so now is the time! I believe it's the primary focus of the LEO team which is good because we need it sooner than later in order to capitalize on it as demand for such as system is massive right now.

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From what I understand, the fees are not going to be addressed on Ethereum for at least two years.

So it is not as if this is going to be fixed anytime soon.

Plus we are very early in the game. There is a lot more people still left to arrive.

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ah for some reason I was thinking it was August when miners get fees reset with EIP-1559

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From what I understand, the fees will be more predictable but will not necessarily go down.

We will see what the plans are and if they roll out in August. It was already delayed.

I imagine there is a big political situation going on since the miners really do not want to give up control (which I can understand).

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Yep, I mean we where suppose to have POS on Ethereum two years ago and it still hasn't happened lol We will see. The longer those fees stay high though the long CUB will be in the spotlight as the to go to place!

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I will confirm once the details are final, but Pulsechain might be forking the ethereum system state so there will be pulse versions of all erc20 tokens, again, will confirm once the final details are public, it is still be developed.

Other than that we would have to advertise the least expensive way to get LEO and push how lucrative getting an early can be.

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(Edited)

I dont think Ethereum will fix the fees or scale. Its basically a spectrum in terms of its capabilities. The same can be said for Bitcoin but people are stubborn and these projects are emotional to people. People are like look we are going to build the future monetary systems and run smart cities on a spectrum, Its hilarious. Meanwhile the tech for it actually exists on another chain but the branding is terrible. The whole space has big problems and im running towards what really matter here, financial privacy. This is the most important development of the entire space and its going to get really serious soon.

Bitcoin is soon for wall street and bankers only, it will be an alt coin eventually. Its kind mind blowing to me that a coin like Doge will do tens of thousands of bitcoin in volume on a tweet from Elon Musk, while serious projects get ignored. Elon musk is really not that smart of a guy, getting into Bitcoin at 40k is proof. Hes dumb and so are people, they only move around like sheep they do not think for themselves. This is what is happening in the entire space, people are not thinking critically for themselves.

Having said all that Doge is here to stay and its a perfect gateway crypto currency because its light hearted and non serious. It will have a bright future attracting noobs.

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Bitcoin is soon for wall street and bankers only

I agree. It is already moving in that direction.

Elon musk is really not that smart of a guy, getting into Bitcoin at 40k is proof.

I think you contradicting yourself here. With most of Wall Street and the bankers on the sideline, the idea of Bitcoin being near its peak doesnt make sense. They will push the price a lot higher as the rest of them scurry to get in. We havent even seen, to my knowledge a central bank enter the realm. When they do, the demand will really increase.

Legitimate projects are regularly overlooked by the markets. That is how it operates. It is the follow me crowd driven by fear and greed.

Few in any market truly take the time to seek what is going on.

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No what im saying is that if he was smart he would have been buying sub 1k dollars like anyone who is smart. Seriously he is not smart at all. He made more money out of Bitcoin in January 2021 than 10 years selling cars. Hes dumb.

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Agree, Ethereum is close to an end, in my humble opinion.
A bridge is needed for Leo lovers, as I call ourselves.
Great points and excellent insight.
Both you and @bitcoinflood focus on timing in this post and its answers. Timing leads to effectiveness and I put my hopes into this also.

Thank you for this reading!

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Technically the bridge already exists.
We can do all the steps manually.
The product being build will simply streamline the process to a one-click solution.
Which is pretty necessary for anyone who knows nothing about LEO.

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Perfect,
I know little about Leo but I am updating daily. I find it to be a personal duty since I am in here for 50 days. To learn and to see which could be the next steps. To appreciate good information, copy it in a Hive file I have created...I'll be one of the first people to use that product in a one-click solution.

Thank you for your guidance!

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Yup that's right we see similar phenomena in bsc

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Leofinance it´s a powerhouse, this is the beginning of the beginning.

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I have high hopes but moderate expectations. You are saying in here "if it catches on" and that is precisely the point. We need to figure out how it is going to catch on. I've been doing a lot of marketing tests lately and it is SHOCKING how many crypto people have never heard of hive let alone Leo/Cub. It's been an eye-opening few weeks for sure. Hive/Leo/Cub is literally the best kept secret in crypto

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CUB is new.

Hive doesnt have a lot to offer most crypto people since they are not bloggers.

Leofinance is in the same boat.

That is why we need an app that will really set things apart. People are trying to promote stuff without much to promote.

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True. I was talking to some marketing folks at safegalaxy tonight. They are hardcore tiktok and reddit. They have no product at all and I 10x in 24 hours. I was interested how they were spreading the word. I wish us luck with Cub.

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I dont know and pumps happen all the time. Then comes the dumps.

Watching price is a mistake. It causes people to want to duplicate what ends up being nothing.

Hive went to $1.10 a week or two ago, and look at what happened. Market pumps do little in the long run.

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This looks like a really good initiative, I was wondering how it was going to work. Imagine if the price of Leo increases what the upvote values will be on the Hive block chain.

Be able to make an affordable living as a blogger :)

If safemoon can sharply increase in value without being listed on an exchange then so can Leo.

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I am wondering how this is different from the binance bridge. Even if it is similar it needs some competition, I had some coins stuck in the backlog at binance bridge for a nerve wracking 8 hours..thought I lost my money but eventually it came through. I think an efficient bridge which is transparent so we can see what's happening is really needed. Can't wait for it to be launched.

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I am wondering how this is different from the binance bridge.

Since I havent seen the workings of LeoBridge, I cant answer so I will have to wait until it is released like everyone else.

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This is one of those applications that, if it catches on, it will be wildly successful. It is potentially targeting a very large audience.

I'm very worried about the fees associated with the bridge.

Over the weekend, someone mentioned the ETH fees were $77, compared to about 40 cents on BSC.

ERC-20(ETH)--->wLeo--->LEO--->bLEO--->BEP-20(BNB)

Due to liquidity issues it actually looks more like this:

ERC-20--->(ETH)--->wLeo--->LEO--->bLEO--->(BNB)--->BEP-20

G-Damn... that's a lot of fees...

  • unwrap wLEO fee
  • wrap bLEO fee
  • 0.25% bridge fee
  • 0.3% Uniswap fee
  • 0.3% Uniswap fee
  • 0.2% Pancakeswap fee
  • 0.2% Pancakeswap fee
  • Two Ethereum transactions bundled into one on router
  • Two BSC transactions bundled into one on router
Technically 11 fees to use the bridge one time.

Just did the math of the bundled transactions...
You don't get that good of a discount for doing two things at once.
Maybe 20% discount...
Looks like it's going to cost like $200 just to use it one time.
Yikes.

Binance tokens are not supported in the United States making it a challenge for people in that country to convert their stuff over.

This is the thing I may be greatly underestimating.
There could definitely be some ragequit action that breathes life into the bridge.

In fact, a higher [LEO] token price is almost necessitated.

I was thinking about this in terms of CUB price as well.
Imagine CUB goes x10...
Now the APR on the bLEO/BNB farm just went x10.
How much LEO gets purchased to capitalize on that?
Quite a bit.

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Technically 11 fees to use the bridge one time.

Without a doubt, it isnt cheap. But then anything associated with Ethereum is not cheap. All those add up, sans the ETH fees, to be very little. However, 2 ETH fees can run $150 bucks alone.

It is why BSC is probably starting to get a lot of attention.

This is the thing I may be greatly underestimating.
There could definitely be some ragequit action that breathes life into the bridge.

Judging by a few posts I saw recently, it looks there is a lot of that out there.

I think there were two on Hive today about people just fed up with Ethereum and selling out.

Will the fees come down? At some point you would think so but who knows.

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Yeah on a certain level it's pretty funny... because the bridge might look unusable due to a $200 bridge fee... but then again it costs more than that on ETH just to compound the rewards on an LP farm one single time (harvest, sell half, LP, enter-farm). Once they move over to BSC all the fees are reduced by over x100.

At the end of the day ETH fees are only going to skyrocket for the next 9 months.

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At the end of the day ETH fees are only going to skyrocket for the next 9 months.

Yeah I dont see them falling anytime soon. And it supposedly is going to take them 2 years before they will address the fees.

Good luck with that.

because the bridge might look unusable due to a $200 bridge fee... but then again it costs more than that on ETH just to compound the rewards on an LP farm one single time (harvest, sell half, LP, enter-farm).

A great way of framing the pricing. You are right. When put into context, it makes sense.

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This is going to be a great step towards DeFi. I'm really looking forward to it and I hope it goes live soon.

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It will be a piece to the puzzle. We will see how much attention it gets.

Either way, a nice tool to have in the bag tied to the Leofinance system.

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The slowness of BSC today got me worried a bit. Yes, ETH is too expensive nowadays, we love BSC for its speed and low fee. But what would happen if we could not do anything like today? CubFi shows NaN to all pools. My bLEO to CUB exchange this morning seemed never happened.

For the sake of competition, I kinda don't want ETH to die now. As long as they can reduce fees in ETH 2.0.

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Ethereum isnt going to die. The activity on there is still growing.

As for the time down, that is a risk with all chains/projects. There were times in the past that Steem was down.

Certainly BSC isnt, in my opinion, the best solution. That is why I am an advocate for the HSC project being worked on by @klye.

We will see how that unfolds in the next couple months.

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I wonder what the costs will actually look like. From reading the comments, its still going to be fairly costly and the savings will likely only be slightly different from doing all the steps. I guess the conversion between bLEO and wLEO can be kind of done internally and can be bulked up if they have some reserves.

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I am sure it is not going to be the most cost effective mechanism. However, the bulk of that is going to be the ETH fees.

Again, for those moving large amounts of ETH, we see a potential market. For those moving small amounts of money, not an ideal target.

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But can't it be adopted to small amounts too if there is something like a liquidity pool. For example, the fees from unwrapping/wrapping wLEO and bLEO can wait until there is a sizable amount. Then all people are paying for would be the fees from transferring the token -> ERC -> wLEO/bLEO (internal pool) -> BSC token and transfer? I can see this at least cutting costs because you can bulk up the wLEO and bLEO wraps/unwrapping and only do so when you need to.

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I have moved over to BSC with a lot of functions. Do we know how much BNB is owned by CZ? Just brought this up in a post. Do they own a dangerous amount? Asking for a friend lol.

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I have no idea. He claims, if you believe him, that Binance was not involved in the chain construction, that it was done by outside people.

That is, if you believe him.

It is centralized so there is that factor to it.

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Well, this sounds like great news for the Leo community...

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That is right
but we need propaganda
we need some noise
look at coins like safemoon, safemars, safeshit
They are flying because of noise

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the leo team has been quite quiet in recent times. Is there any roll out plan currently? Also what's up with project blank?

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No word on any of it. We will just have to wait for updates.

The only thing said is LeoBridge was targeting end of month and Blank might be end of Q3.

We will see if that changes.

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My question now is "For how long the BSC fees will stay low ?"

The fees are always getting bigger, following the price of the token but I don't know where it will end. If the token is so expensive that the fees are $20 too, we will just need another blockchain to have lower fees.

The brigde is really great if you want to change blockchain though ! And it's all good if that makes Leo or CUB price rising !
!PIZZA

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The difference is BSC is not Proof of Work. Just like Hive, things can be adjusted to better reflect the present market.

Ethereum doesnt have that opportunity right now. The Witnesses on Hive can adjust the RC for each action, up or down.

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I was wondering how was turning BSC. Thanks for that !

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I agree that this is going to be pretty awesome, but I think a lot of other projects are already working on their own bridges or already have them in place. I think that could hurt the Leo Bridge in the short term. It does seem like a lot of the bridges that are out there are relatively token specific. That could potentially be a good thing for this project I guess.

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Sure other projects can do it. The question is what do they do and how trustworthy are they?

Since we got CubFinance, there were other BSC farming projects, some of what already exist scammed.

Trust is still crucial.

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I agree with that. However, like you said in your other comment the fact that we know that doesn't really matter. It could be a little bit before the word starts to get out and others realize that as well.

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If it catches on...
How do you retain exclusivity?

If all it's doing is automating
multiple chain transactions into
a single 'dumb human' click then
what makes that activity be ONLY
AVAILABLE by holding a Leo token?

Couldn't it just be replicates by
other chains on their own native
token if the service catches on?

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Sure it could be replicated and other could do it. Yet you could make the same case about everything.

Why would anyone use Hive when someone can just replicate it? Or Ethereum? Or Uniswap? Or PancakeSwap?

They all can be replicated yet they are used.

If you are going to apply that to this, then apply it to everything.

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Let's hope it's not a bridge too far like Project blank seems to be at the moment :)

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LeoBridge is going to be a great addition for sure.

I am waiting for LeoBridge and Kingdom on Defi and hope both will make Leo/CUB even more valuable.

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