RE: LeoThread 2025-08-04 18:04

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explain LSTR like I am 5 years old: I suppose people are buying it because it will become more valuable because they will buy more leo which will go up in price? Or will there be leo payouts to holders?

leofinance
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You like legos, you can buy lego unit by unti and each time you play with your lego you pay a little fee and reviece some more. Or you send your lego to your friend LSTR which is good at playing and pay the same fee as you

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but he separate the fee between all his friend and never miss a day playing, so one day you take you lego back and you have more than at the begining.

Now remove the "g"

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Let me try:

  • LSTR uses the money from the people buying LSTR to buy $LEO and lock it on the Dex (yes, an individual can do that aswell)
  • LSTR (and everyone else that locks the LEO on the Dex will receive money on a daily basis to buy more LSTR (yest, an individual can do that aswell)
  • Due to the large position that LSTR holds and because it will never sell, it can provide value adding services (such as participating in loan offerings, operating master nodes / validators) that provide additional income , which they use to buy even more LEO (for the average investor this is difficult both in terms of required funds, as the trust worthyness on long term vision).
  • Due to the reinvestments of the above - it will become even more suitable to offer value adding financial services and obtaining an even larger share (which they effectively take out of circulation as it will remain staked)

Hmm maybe a little difficult for 5 y/o, but maybe suitable for 12 y/o?

Hope it helps a bit?

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thanks, that helps. But why would people buy LSTR and not leo? And why would LSTR's value increase? (isn't all the value going to leo?)

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happy to help!

Few reasons:

  • while LEO moved in price, LSTR remained available for the same price (which means you can now get cheaper exposure to the underlying assets LSTR has than buying it yourself) - This would not mean that much wasn’t it for Khal opening a LP at fair valuation once the initial sale sells out. (Short term opportunity)
  • long term - it adds a new layer to the LEO ecosystem (new services) you could buy that believing it will help the total product become more attractive.

For me, LSTR functions as a catalyst were $1 spend via LSTR will have a bigger effect on LEO compared to an individual buying $1.
So if you have a good position in LEO (like my 135K LEO, LSTR becomes very interesting)

But yeah personally I would definitly make sure to have direct exposure to LEO aswell.

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