Fellow Lions, we have been working deep in the lab on that Base Bridge that is being built for both LSTR & SURGE. A critical lead domino for it is the release of our cross-chain Market Maker.
Over these past several days, we've built and iterated our Hive-Engine market maker. That is now live and operating in the market. It's starting to roll in some profits to the fund which adds infinitely accretive LEO to our balance sheet.
The cross-chain market makers are taking a bit more time than we anticipated. It is vital that we have these live BEFORE the launch of LSTR & SURGE to Base. There are a handful of reasons behind this. Among them, two are most important to us: 1. Low bridging fees at launch 2. Value accretive vs. value extractive arbitrage
In this blog post, we'll talk about these two points and why we are widening our launch window for SURGE on Base.
Don't worry, the SURGE bridge to Base does not impact SURGE on Hive-Engine. You are welcome to hold your SURGE either here on HE or over on Base. The key difference is Base holders will earn USDC for their dividends while HE holders will earn HBD.
Also, the presale price will be increased when we deploy the Base contract. This will coincide with removing the presale from HE and pushing it live on Base. We figure that by then, the majority of Lions on LEO have already gotten their bags filled with SURGE. We will reprice the presale significantly higher (closer to the $1 floor price) and then release whatever is remaining from the HE Presale over on Base.
We expect it to sell out nearly instantly on Base. So we're hoping Lions get as much SURGE as they want before the Base migration (also, the price is cheaper on HE than it will be on Base).
TLDR; get your SURGE now on HE at cheaper prices or risk not getting any because it will sell out too fast on Base and at a higher price.
Why The Cross-Chain MMs Are a MUST Before the Base Launch
- Low bridging fees at launch
- Value accretive vs. value extractive arbitrage
The low Bridging fees are the most important reason to us. The LeoBridges currently have extremely high fees (ranging from 8% all the way to 15%). These fees are based on volatility and they're designed to prevent value extraction from arbitrage bots.
We don't want to launch LSTR & SURGE with the same type of variable fee structure. This was put into place on the LeoBridges in order to avoid extraction of the economy. With LSTR & SURGE, having the cross-chain MMs live right out of the gate will prevent the need to have this variable fee.
Instead, we plan to have a modest fee of roughly ~1.50% (subject to change).
This fee will allow it to be economical to bridge back and forth BUT still keep enough of a gap in the fee to allow our whitelisted Market Making bot to harvest volatility and generate profits.
Those profits are then used to buy more LEO. To learn more about our engineered volatility harvesting strategy, read this blog post: https://inleo.io/@leostrategy/how-leostrategy-engineers-volatility-to-create-profits-buy-more-leo-cts?referral=leostrategy
Value accretive vs. value extractive arbitrage is very important as well. As explained above, the LeoBridges experience value-extractive arbitrage. This is why the variable fee was introduced. As volatility increases, the fee increases. This causes arb bots to pay hefty fees for the pleasure of making profits on the LEO cross-chain economy. This has become a vital way to stop the bleeding of value extraction from arb bots.
With LeoStrategy's Market Maker, we are working with the LEO Team to launch them for the LeoBridges. This will allow LeoStrategy's MM to market make the LEO (Arbitrum), bLEO, pLEO and heLEO pairs faster and more efficiently than other arb bots. Since LeoStrategy invests 100% of our profits back into the LEO Economy by buying LEO and perma-staking it on our balance sheet, Market Making becomes value accretive instead of value extractive.
With our Cross-Chain Market Maker tech, we are launching it for LEO Pairs first. These should be live any day now. Once they're live, we'll make sure everything is in working order and then immediately launch SURGE on Base. We thought this would happen inside the original launch window, but the HE Market Makers took more time than expected.
With all of that in mind, the HE Market Makers are now fully live. The Cross-Chain Market Makers are already in testing. We are on the verge of our Base release.
We're extending this launch window a few more days to ensure we can properly expand to Base with a model that **accretes as much value as possible to the LEO, LSTR and SURGE economy.
In short, SOOOOOOOOON.
For now, enjoy the ~25% instant profit discount on SURGE's presale and the ~20% effective yield that it is now offering.
- Buy SURGE for a limited time (measured in days left, not weeks) -> https://beeswap.dcity.io/tokens/SURGE
- Buy SURGE for a limited time (measured in days left, not weeks) -> https://tribaldex.com/trade/SURGE
Posted Using INLEO