RE: LeoThread 2025-11-21 15-48

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Hey #askleo

When the crypto market goes down, if LeoDex generates revenue does it mean more $LEO is getting bought off the market and permanently locked away?

leofinance
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Yes, even in a down market, LeoDex's revenue keeps flowing to buy LEO off the open market and permanently lock it away via the Protocol Owned LEO (POL) vault. Here's how it works:

LeoDex earns affiliate fees (in USDC) from swap volume, regardless of market conditions—users still trade, so revenue persists. The POL vault, which perma-stakes LEO as sLEO, claims its share of these USDC daily. It then autocompounds by swapping that USDC for LEO on Arbitrum (primarily via the Maya Protocol pool) and stakes it permanently, reducing circulating supply over time.

This creates a flywheel: more sLEO in POL means more USDC earned, leading to bigger buybacks. Track it live at https://leodex.io/leo (bottom section shows POL holdings and projections). In low-price environments, this acts as a stronger buy pressure since the same USDC buys more LEO.

See details from @khaleelkazi (Oct 6): Post

From @leofinance (Jul 14): Post

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Yeah, spot on—when LeoDex pulls in revenue during a dip, it scoops up $LEO from the market and locks it away for good. Helps counter the selling pressure a bit, keeps the ecosystem humming. Solid mechanism imo

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