TTSLA Documentation | Predictable, Onchain Rate Policy to Govern a TSLA Peg

We are incredibly excited to unveil TTSLA to the world. TTSLA is Tokenized Tesla and represents a synthetic token that is designed to trade in lockstep with TSLA. Offering TSLA exposure onchain with predictable rate policy to govern the peg.

Pegged assets have gotten a mixed bag in crypto. In many cases, they flat out don't work and blow-up risk threatens every peg business.

TTSLA is designed to solve those issues while delivering a tokenized synthetic that is over-collateralized by LEO on our balance sheet. TTSLA offer synthetic TSLA exposure with no redemption risk and no custodian requirements of actual TSLA shares.

This means that LeoStrategy can issue TTSLA to the market and allow the market to trade the peg dynamics to correlate it with TSLA's price.

TTSLA trades at 1/100th TSLA's current price but trades with a 1.0 correlation.

Documentation

Earlier today, we released a blog post giving the high level introduction of TTSLA and how the presale works. Please read that before reading the following as we believe it sets the tone for this documentation.

This documentation is comprised of the more raw details governing TTSLA and the peg to TSLA that we have designed for synthetic exposure to TSLA. TTSLA is designed to maintain a 1:100 peg to TSLA's price. For example, if TSLA trades from $450 to $500, TTSLA should trade from $4.50 to $5 through predictable rate policy.

Disclaimer: TTSLA is a synthetic derivative that is designed with a liquidation preference equivalent to 1/100th of a TSLA share and the rate policy is designed to keep TTSLA's market price operating in lockstep with TSLA. The market has a mind of its own and its possible (likely) the peg may deviate at times. Predictable rate policy steps in to bring TTSLA back to the desired 1/100th TSLA peg. At all times, TTSLA is over-collateralized by LEO on our balance sheet and each 1 TTSLA has a liquidation preference equivalent to 1/100th the value of TSLA.

1. Overview

TTSLA is a synthetic token backed by the LEO permanently held on LeoStrategy’s balance sheet. It’s designed to track Tesla's price (1 TTSLA ≈ 1/100 TSLA share) using token monetary policy, not redemption or algorithmic pegs.

TTSLA is TSLA exposure for the modern investor — always on, always yielding, fully onchain.

Every TTSLA issued contributes to buying and staking LEO, growing the LeoStrategy balance sheet and increasing long-term collateralization for all LeoStrategy products.

2. Core Model

• Peg Target: 1 TTSLA = 1/100 TSLA share (if TSLA trades for $420, then TTSLA trades for $4.20)
• Monetary Policy: Weekly adjustments to yield (policy rate) are used to keep TTSLA close to TSLA’s price (on a 1:100 ratio)
• Collateralization: All capital raised through TTSLA issuance is used to buy and stake LEO, which remains permanently on LeoStrategy’s balance sheet
• No Redemption: TTSLA is not convertible or redeemable. Its stability comes from yield incentives and balance sheet strength
• Liquidation Preference: TTSLA is over-collateralized by LEO on LeoStrategy's Balance Sheet. The liquidation preference is always 1/100th of 1 TSLA share. If TSLA is trading at $420, then TTSLA's current liquidation preference = $4.20. This provides collateralization "safety" while the peg policy drives market behavior to trade at/near the liquidation preference

3. Peg Stability Mechanism

• If TTSLA trades below TSLA, the policy rate increases dividend yield, attracting buyers.
• If TTSLA trades above TSLA, dividend yield is reduced (but can never be reduced below 3% which is the baseline APR). TTSLA can also be issued via controlled supply ramps to expand the marketplace without diluting holders (if TTSLA trades at a premium to TSLA, LeoStrategy can strategically issue additional shares to scale the size of the market. Using proceeds to purchase LEO to add to our balance sheet)
• Staking APR locks might be implemented at LeoStrategy’s discretion if TTSLA trades below the peg for a sustained period (allowing holders to lock TTSLA into bonded contracts for 30, 60 or 90 days for extra yield incentives. Reducing float and increasing peg stability)
• This mirrors a central bank’s interest rate model, except here we use programmatic policy via weekly onchain Threads that are predictable and onchain

This is not an algorithmic peg. It’s a predictable policy peg — maintained through yield/fees, not fragile mint/burn loops. Predictability encourages arbitrage anticipation, reinforcing peg stability. Profits from arbitrage are used to buy LEO and add to the collateral base, increasing over-collateralization.

More details on Peg Policy are in Section #10.

4. Collateralization & Balance Sheet

• Current LEO balance sheet: 3,750,000+ LEO ($575,000+ - $625,000+)
• Current LSTR equity metrics: 100,000 LSTR @ $5.00 (~$500K)
• New TTSLA raise: USD $100,000 → buys ~750,000 LEO
• Post-raise balance sheet: ~4.5M LEO (≈ $675k+)
• Initial TTSLA issuance: USD $100,000

Every dollar raised boosts the permanent LEO collateral base. As the LEO price appreciates by our expected target of 100% per year and more capital is acquired by LeoStrategy to fuel more LEO purchases (along with profits from Market Makers and other products), the coverage ratio strengthens automatically.

Pristine Collateral Policy

“We buy LEO. We hold LEO. That’s it.”

• All capital from TTSLA (and other products) is used to buy + perma-stake LEO.
• That LEO is never lent, rehypothecated, or traded.
• Collateral is held in a public, transparent vault address for full verification.
• The LEO is staked as sLEO, earning yield (e.g. via LeoDex fees).

This delivers a trust-minimized collateral base: transparent, auditable 24/7/365, and growing.

5. Compounding Effect (LEO Appreciation)

If LEO compounds at 100% annually for 10 years, coverage grows exponentially, making TTSLA extremely over-collateralized in USD terms. As our balance sheet expands, the marketplace for TTSLA and other LeoStrategy products can naturally expand with it. As these products expand, our market makers generate more profits for the fund and fuel additional LEO Purchase. Creating a flywheel effect of USD value appreciation on our balance sheet.

6. Capital Structure & Liquidation Preference

In the unlikely event of a liquidation, SURGE holders have first priority over collateral, followed by TTSLA, then LSTR. This structure provides SURGE with senior protection while still offering TTSLA holders a senior claim over LSTR in a liquidation scenario. SURGE has a liquidation preference of $1 per SURGE and TTSLA has a liquidation preference of 1/100th the last market price of TSLA (i.e. currently $4.42 as of this writing since TSLA is trading at $442). This means that if you're a SURGE holder, you know you'll get a senior claim on $1 per SURGE you hold. Then TTSLA holders will get $4.42 per TTSLA they hold followed by everything else being claimable by LSTR Equity holders.

7. Policy-Governed Peg vs Mint/Burn Peg

We intentionally built TTSLA as a policy peg instead of mint/burn. This aligns with our core mandate: acquiring more LEO and using that collateral for product backing.

8. Simple Exposure, No Custody Risk

• No need to custody TSLA stock, worry about redemptions or deviate from our mandate of simply acquiring LEO and perma-locking it in our staking vault.
• All transactions, yield payments, and policy changes are fully onchain, transparent, and self-custodied.
• TTSLA holders maintain direct control of their tokens and yield flow.

LeoStrategy’s mission: pristine collateralization.

• All capital raised goes to acquire LEO.
• That LEO is stored in a public vault address (visible onchain).
• TTSLA holders can verify collateral backing their TTSLA liquidation preference at any time.

9. Why Buy TTSLA

🕒 1. 24/7 Tesla Exposure

“The stock market sleeps. Tesla doesn’t. Neither should your exposure.”

• Traditional TSLA is locked to TradFi suit hours.
• TTSLA gives exposure anytime, anywhere, onchain.
• No holidays. No waiting for Monday.
• You can buy or sell when you decide. The power of true, onchain self-custody vs TradFi brokerages.

💰 2. Yield on Tesla Exposure

“Wall Street pays you 0%. TTSLA pays you yield.”

• Real TSLA stock gives no yield.
• TTSLA pays a baseline 3% APR, with potential boosts through policy.
• It’s like holding Tesla and getting a yield layer — a superior form of exposure.
• Over time, yield offsets opportunity cost and creates positive carry.

🧱 3. Crypto-Native Ownership

“Own Tesla exposure without ever leaving the rails you trust.”

• Fully self-custodied. No brokers, no custodians, no middlemen.
• One wallet. One dashboard. Full control.
• And more utility than TSLA could ever offer:
• Earn yield for simply holding TTSLA.
• LP into TTSLA pairs for additional yield streams.
• Borrow against TTSLA as collateral.
• Integrate TTSLA with bridges, bots, and DeFi protocols.
• Massive optionality TTSLA holders are supercharged by DeFi while TSLA holders are held back by TradFi. The same exposure to the same incredible company but massive optionality is baked in to TTSLA that TSLA common stock could never dream of having

🪨 4. Backed by Real Collateral, Not Promises

“The peg isn’t a whisper. It’s a balance sheet.”

• TTSLA isn’t algorithmic — it’s policy-governed and over-collateralized with LEO.
• The collateral sits in a transparent onchain vault.
• You can verify backing at any time.
• Policy meetings set rates to nudge the market back to peg (not fragile mint-burn loops).

📈 5. Tesla Exposure + Asymmetric Optionality

“You’re not just betting on Tesla. You’re betting on an expanding monetary base.”

• If TSLA performs well → TTSLA mirrors it.
• If LEO appreciates → collateral ratio strengthens, TTSLA becomes safer over time.
• Over the long term, this creates a double flywheel:
• TSLA price ↑
• LEO collateral ↑
• TTSLA trust ↑
• Demand ↑
• Market Maker Profits ↑

10. How the Peg Holds

TTSLA’s stability is governed by transparent, intentionally engineered monetary policy, not fragile mint-burn loops.

📊 TTSLA Peg Policy Framework (TSLA = \$444 → Peg \$4.44)

This is the actual peg policy you will see live when TTSLA is sold out and in the open market. Each week, you can predict the upcoming changes to the interest rate of TTSLA simply by using this chart as your guide. The new TTSLA Threads agent (live ~48 hours from this post) will also post daily updates regarding the current policy + expected policy changes based on market dynamics.

Don't worry if this is a lot to digest right now. When TTSLA is live in the wild, the TTSLA Agent will help you see the dynamics in real-time and it will be very easy to digest.

Note: LeoStrategy holds the right to adjust these policies as seen fit (namely, if the TTSLA Peg behavior isn't acting to the desired 1/100th peg to the level we believe this model should).

🔒 Lock Rewards Summary (Activated ≥ −10% Deviation)

Once the TTSLA price drifts 10% below peg, LeoStrategy shifts from normal policy mode to defense mode. This introduces optional staking lock incentives to accelerate peg recovery, reduce float, and reward conviction buyers.

Locking removes TTSLA from active circulation, easing sell pressure during stress. Hodlers who believe in the peg are rewarded with higher returns. This mirrors how central banks raise interest rates and tighten liquidity to restore confidence — except here, it’s fully onchain and transparent.

Predictable policy creates predictable outcomes.

Because the peg policy is fully transparent and rule-based, everyone knows how the system will react at each price level. If TTSLA drifts lower, the market already anticipates the upcoming rate hike and staking incentives. This encourages frontrunning behavior that works in favor of the peg — arbitrageurs, yield farmers, and long-term holders step in before the deviation widens, tightening the peg automatically. Instead of the protocol chasing the market, the market moves to meet the policy, creating a self-stabilizing flywheel over time.

TTSLA’s stability is governed by transparent, intentionally engineered monetary policy, not fragile mint-burn loops.

• Weekly policy rate adjustments maintain a soft peg around the TSLA 1:100 ratio.
• Yield hikes incentivize new demand if TTSLA drifts below peg.
• Controlled issuance on the upside stabilizes premiums when TTSLA trades above peg and allows structured expansion for TTSLA's market cap.
• Transparent LEO collateral backs every TTSLA token, verifiable onchain at all times.
• Historical deviation bands and market maker strategies anchor the peg through predictable incentives and arbitrage behavior.

This turns the peg from a point of fragility into a mechanism of strength — predictable, transparent, and engineered to reward arbitrageurs for keeping the system in balance. As the system is kept in balance by both active and passive flows, LeoStrategy's internal Market Maker generates profits for the fund by keeping the cross-chain market pairs for TTSLA\:LEO and TTSLA\:USDC in perfect alignment. Profits earned purchase additional LEO and scale the balance sheet which strategically increases the collateralization of TTSLA.

11. Vision | TTSLA in the 10M/10M Plan

LeoStrategy is building a tokenization launchpad with LEO as pristine collateral to bring major assets onto the blockchain via synthetically engineered, predictable rate policy. We will deploy a vertical stack of products (LSTR, SURGE, TTSLA) — all backed by LEO. Profits from sustainable market making are recycled to acquire more LEO, compounding system strength by deepening over-collateralization ratios.

Phase 1 goal: 10M LEO. TTSLA launch adds to our capital reserves to purchase additional LEO. TTSLA selling out will also initiate the launch of our TTSLA Bridge to Base as well as the TTSLA Cross-Chain Market Maker. TTSLA added to the asset stack = more profits = more LEO purchases.

TTSLA is the first RWA synthetic token in our stack:

“A permanent-capital ecosystem, collateralized by LEO, issuing synthetic TTSLA and governing it with a policy-based peg.”

As the balance sheet grows, TTSLA becomes safer, more over-collateralized, and more attractive.

11.1 Feed-Driven Repricing & Market Making Profitability

TTSLA injects volatility via the TSLA policy peg. LeoStrategy uses external repricing nudges to create micro-arb opportunities across chains. Bridge / market-maker bots help keep pool prices aligned → more volume, more spread capture, more fee revenue. 100% of profits purchase additional LEO and scale the LeoStrategy balance sheet.