SURGE is offering the best fixed income yield that you can get of any asset onchain. In this blog post, we'll compare SURGE to a few of the other assets out there and see why it stacks up the best. We will primarily focus on HBD as that is the most relevant here. With SURGE coming to the Base blockchain VerySoon, we will also release a blog post comparing it to USDC (when the time comes).
What is SURGE?
SURGE is a fixed income yield asset. In other words, SURGE has downside protection while offering infinite future upside and a yield while you wait.
- SURGE has a floor price of $1 which is maintained by the LeoStrategy's Treasury Policy - it can be liquidated for no less than $1 per SURGE which gives holders downside protection. Holders of SURGE live at the top of our preference stack in terms of assets
- SURGE has a stated yield of $0.15 per SURGE per year - this gives it a stated yield of 15% or an effective yield of ~19% (since the presale is priced at a discount)
- SURGE offers unlimited future upside - SURGE can be converted at any time at a 50:1 ratio with LSTR. This means that 50 SURGE can become 1 LSTR in the future. This becomes economically feasible when LSTR is worth more than $50+ in the future (i.e. when LSTR is $100, SURGE can give you an instant 2x profit for converting to LSTR)
- SURGE has 0 staking requirements. If you hold SURGE, you get paid dividends and can sell at any time (no unstaking time)
- SURGE pays dividends weekly in your preferred stable coin (HBD or USDC or LSTR if you want equity shares every Monday at 0:00 UTC) and users on INLEO Threads can use @surge.yield to manage their yield
What is HBD?
HBD stands for Hive-Backed Dollar. It is a soft-pegged stablecoin that pays 15% APR. HBD offers you stability - no upside and no downside - while paying you yield. It is basically a money market savings account that pays you a yield for locking it up in your wallet (staked HBD). 1. HBD has an onchain policy price of ~$1 that is maintained by the HIVE price. If the HIVE price goes down, haircut rules are in place to attempt to maintain the $1 peg 2. HBD has a stated yield of 15% APR, paid monthly 3. HBD has no upside nor downside (pegged to $1) 4. HBD requires 3.5 day staking. To earn yield, you must stake your HBD 5. HBD pays dividends monthly as HBD
SURGE vs. HBD
Legend: 🟢 advantage (for buyers seeking yield + optional upside), 🔴 less favorable, ⚖️ depends on preference (pure stability vs upside).
While we support HBD and actually use it as a payment method, SURGE offers a superior yield to those who want a fixed income but also participate in long-term upside. We built SURGE to address a market of investors who want to limit their downside by having a $1 floor price but still tap into long-term future upside via a call option on the LSTR token. By holding SURGE, you get paid to wait for LSTR to be successful (cross $50) in the future.
SURGE offers a way investors to earn income while they wait for LSTR (and by proxy, LEO) to skyrocket in price in the future. If it takes 3 months, then you only waited 3 months and got paid yield 12 times (weekly dividend payouts) until the LSTR price skyrockets. Then you have the option (but not obligation) to convert your SURGE into LSTR and collect your profit.
Who Should Buy SURGE?
SURGE is for investors who want fixed income (19% APR) while waiting for the LEO and LSTR economy to rise dramatically in price. If it takes a few months, you get paid yield for a few months to wait for this to happen. If it takes a few years, you get paid yield for a few years to wait for this to happen. In the long-run, SURGE buyers will outperform HBD (and other stablecoin) holders by orders of magnitude because SURGE has unlimited upside via the LSTR conversion option
SURGE is built for investors seeking fixed income and downside protection while still getting access to future upside. When you compare it to HBD (reference the chart we shared above), you can see that there are many similarities.
The key differences are around the upside that SURGE offers in the future. By holding HBD, you get a little bit more security in knowing that you're holding a stablecoin backed by the Hive blockchain. The strength of HBD and the promises it makes are surrounding the Hive witnesses and blockchain.
HBD is a stablecoin offering yield. SURGE is a $1 floor price asset (downside-protected) with uncapped asset that offers you yield to wait.
Most products like SURGE in the fixed-income market offer 5-7% yield. Investors basically use it to offset inflation while they wait years for the instrument to pay off.
Since this is crypto, the timelines are much different. We expect SURGE to skyrocket to $2-4 in the next few months as the LeoStrategy balance sheet expands. It essentially is a bet that the LEO price will rise dramatically in the near future. While waiting, we offer a 19% effective yield to investors. Whether it takes a few months or a few years, you get paid to simply sit back and wait for LEO/LSTR to rise in value.
Where to Buy SURGE
- TribalDEX -> https://tribaldex.com/trade/SURGE
- Beeswap -> https://beeswap.dcity.io/tokens/SURGE
Posted Using INLEO