https://img.leopedia.io/DQmVgDxyqy53p7rzv1985bBrYHeyhwUPJtTaxNaFKpYs9nU/image.png
We launched SURGE last week and 10% of the presale is already sold out. SURGE is designed to be the ultimate downside protection in an uncertain market. With BTC, ETH, Alts and even LEO dipping a bit, we see SURGE's launch as being the ideal timing for a volatility hedge product.
How Exactly Is SURGE a Volatility Hedge?
Once SURGE is sold out in presale, a $50,000 liquidity pool will be seeded. Khal has once again graciously offered to seed the pool with his own funds in his continued support of @leostrategy.
The pool will launch with a price of $1 per SURGE. SURGE has a $1 floor valuation because in the event of a liquidation or share callback, each SURGE is redeemable for $1 and is at the top of the preference stack.
Our Presale is priced at a 10% discount to market rate with SURGE priced at 4 HIVE per SURGE. Since HIVE has dropped recently in USD value, this has increased the discount.
Now, you can buy SURGE at a ~16% discount ($0.835 per SURGE). When the pool goes live, the price of SURGE will be instantly repriced to $1.
Additionally, SURGE pays a $0.15 per token dividend. This is a stated yield of 15% or an effective yield of ~17.96%. The effective yield is calculated on a price you pay basis.
No matter what, if you hold 1 SURGE, you will get paid $0.15 per year. So if you buy that SURGE for $0.835 (current presale price), then you are getting an effective yield of $0.15 / $0.835 = 17.96%.
This effective yield dynamic is important to creating demand for the SURGE token.
SURGE has a $1 floor valuation but it also has a fixed yield of $0.15. So if the price of SURGE drops below $1, it is worthwhile for buyers to scoop it up. For each penny it drops below $1, the effective yield grows.
Use the presale as a great example: the limited presale allows you to buy SURGE at a major discount to the actual $1 valuation that will be set when the liquidity pool goes live.
Between built-in demand like this as well as general demand to hedge profits as LEO continues to perform well in the future as well as the stated liquidation value of $1 per SURGE and the conversion rights, we believe SURGE will always trade above $0.99-$1 in long timeframes. Afterall, buying it below $1 is an instant book profit that also pays you yield + conversion rights.
Introducing the SURGE Manager
https://img.leopedia.io/DQmTAoVv3s2Kmhku4ej4M4Vwch7HEaXbLfcsSzhjGLqDyyr/image.png
we're running a Threadcast to celebrate the launch of the SURGE Manager. You can go there and practice using the manager alongside your fellow lions!
We launched @surge.yield which allows you to manage your SURGE holdings as well as track key stats around the SURGE token.
This agent can be used directly on INLEO Threads with the following commands:
1. !SURGE me - To see your info
2. !SURGE stats - To see yield statistics
3. !SURGE hbd - To set payout to HBD
4. !SURGE lstr - To set payout to LSTR
5. !SURGE richlist - To see the richlist
6. !SURGE help - To see a list of commands
@surge.yield also acts as the dividend distribution account to all 144 (and growing) SURGE hodlers.
First SURGE Payout Right When This Post is Launched
The first SURGE payout is about to occur. We wanted to give everyone some time to play with the manager. When this post goes live, the first SURGE Dividend will be paid.
From now on, every Monday at 0:00 UTC, the SURGE Dividends will get paid. It's $0.15 per SURGE token held per year, paid out weekly as HBD or LSTR.
If you opt to receive LSTR, HBD is swapped to LSTR at the market price and then sent to your wallet.
Every Sunday at 0:00 UTC, a snapshot window opens up for 24 hours. This snapshot looks at all SURGE balances. The snapshot is randomized inside this 24 hour window to avoid anyone gaming the system and being able to buy SURGE and sell SURGE within a few blocks of the payouts.
- So hold SURGE before 0:00 UTC Sunday
- Get paid exactly at 0:00 UTC Monday
10% of SURGE is Sold Out
https://img.leopedia.io/DQmTjohZHWaLGmswM1x78TPdLHR31gfr3BuiBXnvZ4mK193/image.png
10% of SURGE is already sold out after just a week of it being live. We're so excited to bring this product to market and this is truly just the beginning of the financial ecosystem we are building.
With SURGE, we've built our first derivative tool for the LEO Ecosystem and Economy. This allows anyone to have a volatility hedge in their portfolio, earn yield and HODL a stable, reliable and growing asset.
The conversion rights for SURGE give SURGE holders unlimited future upside. The best comparison for SURGE is Microstrategy's STRK asset.
With SURGE, you have a stable, reliable and growing yield attached to a call option for future upside.
Questions? Drop a comment below!
Posted Using INLEO