Hello everyone. In today's post, I'll talk about SURGE, the new token released by LeoStrategy on hive-engine. It's currently on pre-sale at a price of four swap.hive for 1 SURGE.
What is SURGE?
SURGE is a token created by the LeoStrategy team and form part of LeoFinance ecosystem (along with LEO and LSTR) . It acts similar to a hybrid instrument that combines multiple benefits for holders. It's price is supposed to be fixed at $1, providing downside protection. It also acts similar to HBD that rewards holders with passive income, yielding around 19% APR simply for holding the token (no need to stake). Additionally, SURGE price has the potential to rise in value through conversion to LSTR. When LSTR’s market price is at or above $50, holders can convert SURGE at a fixed ratio of 50 SURGE to 1 LSTR. So if LSTR's price rises above $50, then SURGE price is supposed to appreciate as well, mirroring LSTR's appreciation.
How The Community Regard SURGE
The LeoFinance community look at SURGE in a positive light (bullish) because of several built-in features that make it a conservative investment, though not entirely risk-free. Its $1 floor price provides security, assuring holders that the token’s value should not fall below this threshold. Also, SURGE pays passive income in the form of weekly yields in HBD or LSTR tokens. Another advantage is its conversion option: when LSTR’s market price reaches or exceeds $50, SURGE can be converted at a fixed ratio of 50 to 1, creating the possibility for gains if LSTR strengthens. Its floor mechanism makes it more resilient in volatile markets, acting as a buffer when the market turns red. All these features make SURGE appealing to the community.
Is SURGE a Safe Bet?
Crypto is inherently volatile and no asset is completely risk-free. However, SURGE does provide some buffer against risk. Its $1 floor serves as a psychological and financial support, while the built-in yield rewards in the form of weekly HBD or LSTR tokens ensure holders are rewarded even if the token’s price does not appreciate. The option to convert SURGE into LSTR provides potential upside, if LSTR price surges then SURGE price will rise as well.
As usual, potential investors are encouraged to do your own research and manage risks. The eventual success of SURGE relies heavily on the success of the ecosystem. For example, if usage of LeoDex stalls, it will decrease the USDC staking yield of LEO and may affect SURGE.
For those seeking some downside protection alongside consistent yield and potential upside, SURGE can be a reasonable choice. Though potential investors are encouraged to diversify their portfolio rather than putting their eggs in one basket. Also be ready to execute your alternative (exit) plans should the protocol's planned execution are not followed. We have seen enough of this in the crypto industry and it is littered with its share of tears along with success stories.
Posted Using INLEO