Can Market Making Drive the LeoStrategy Flywheel?

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In this clip from the LEO AMA, we talk about an interesting topic that I've been diving deep on with you guys on Threads alongside the @leostrategy team.

The LeoStrategy team has a thesis that Market Making will be the largest driver of revenues into the fund. This week, they announced the launch of their HE Market Makers along with their Cross-Chain Market Makers.

The interesting part about their strategy is that they plan to not only launch market makers for LEO (which are now already live and I have seen them working onchain).. but they also plan to launch Market Makers for LSTR, SURGE and future derivatives alongside launching their own Bridging technology.

This means:

  1. LSTR & SURGE will get a Bridge (to Base Blockchain first. Maybe others in the future? They haven't announced if there will be more)
  2. LSTR & SURGE will have liquidity pools on other chains
  3. These pairs will need to be market made by their Market Makers
  4. The profits from market making these pairs will be used to purchase LEO and add it to their balance sheet

This is a fascinating concept to me. What LeoStrategy aims to do is launch a bunch of derivative tokens, pair them in liquidity pools and use varying risk profiles to create arbitrage windows.

Then, they aim to turn arbitrage windows into market making profits. Then, they use the profits to buy more LEO which expands their balance sheet and therefore expands their ability to launch new tokens.

This flywheel requires momentum... is it possible that they'll achieve escape velocity? Listen to the clip to hear my candid thoughts as an outsider looking in.

Posted Using INLEO

hive-167922 leostrategy leo lstr base palnet ctp oneup neoxian vyb
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Leostrategy is making a profit by purchasing LEO and making permanent stakes, and distributing dividends to SURGE holders, thus increasing the value of LSTR. So, LeoStrategy will only succeed if LEO succeeds.
Moreover, Leostrategy's purchasing LEO and making permanent stakes can increase the value of LEO.
In this way, if one of you succeeds, the other will succeed.
So, which of you two ( @khaleelkazi & @leostrategy ) is leading the successful way?

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It will be very interesting to see how much that can contribute to the revenue of LeoStrategy, but in any case it's great to have active market making so there's more liquidity and more volume in the market for LEO, LSTR and SURGE

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For sure it can and I believe that $LEO has some solid ways to capture value from everywhere. This ensures sustainability and a promising future regardless of the market swings.

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