RE: RE: Introducing SURGE | Earn Stable and Reliable 16.67% Yield
You are viewing a single comment's thread from:

RE: Introducing SURGE | Earn Stable and Reliable 16.67% Yield

Words
106
Reading
1 min
Listen
Play
1y

Fantastic question! No - there will never be a forced conversion. In theory, you can hodl SURGE forever and earn the 16.67% yield on your cost basis

That being said, the economic incentive to convert is built in. For example, if you hold 500 SURGE when LSTR reaches $1,000, SURGE's conversion value would be 10 LSTR or $10,000.

The 16.67% yield is on your cost basis (not on the current value of SURGE). So SURGE's value is $10,000 but you're earning 16.67% yield on $500 ($0.15 per 1 SURGE = 16.67% effective yield on a cost basis of $0.90)

This is modeled after Microstrategy's STRK product

@leostrategy: Fantastic question! | Ecency