Let us talk about the new Leostrategy product called ACE, which has just begun its presale less than a day ago. If you have been following what Leostrategy has been building in the inleo ecosystem over the past year, then this announcement won’t come as a surprise to you. Nevertheless, it kind of feels like a big deal because it has all the makings of one of those products that could have an impact on the way value flows through the LEO ecosystem.
For a long time, the community have asking the same questions about how to get more utility for LEO, and make it more useful? How do we reduce sell pressure on LEO when people need liquidity to invest in order things or diversify their portfolios? It seems that ACE is the answer to these questions.
At a fundamental level, ACE is a stable coin that is over collateralized. This means that you pledge collateral (in this case, LEO) in order to borrow ACE, while at the same time keeping the value near one dollar. This is not something new in the crypto industry, but what makes it important is that it's the first in the LEO ecosystem and Hive community.
One thing to be made clear about ACE is that it's not just another asset getting launched for the purpose of speculation. It is meant to be a utility token. Such uses as the act of borrowing and lending, as well as the generation of yield, are the actual uses proposed for ACE. The fact that, as the owner of an asset, you could be forced to sell when you needed cash is the very reason why ACE is created.
The presales incentives are also very tempting to ignore. Participants are guaranteed a yield incentives as high as 20% APR, which are paid out weekly. Being early is very important here, because Leostrategy is trying to reward early investors with the high APR.
One more thing to know about ACE is the peg mechanism. From the Leostrategy's documentation, ACE will be using a peg stability model that allows conversions between ACE and other stable assets like USDC and HBD. The thing here is that the price of ACE will always be around one dollar like most stable coins. Whenever the price goes down below the peg, people can take advantage of the arbitrage opportunity by buying it with their stable, and when the goes up even above the 1 dollar pag, people can convert back to stable. This kind of system provides an arbitrage opportunity that could keep the price of ACE stable most of the time. This is also a risk management strategy already provided for ACE holders.
What I find most interesting about ACE is how it fits into the bigger picture of what Leostrategy building within the Leo ecosystem. Leostrategy has been accumulating LEO with the target of holding 10M tokens without ever selling. Bringing lending and stablecoin therefore gives people the more reason to trust and buy into their vision of holding. With ACE and the lending system, LEO is moving from just a token you can buy or earn and sell, but something you can use in building wealth in the crypto space.
We know that this is about crypto, and nothing is guaranteed. There are always risks, so anyone getting in should take the time to understand how the system works. Of course, it won't be too different from most crypto lending system out there. Nevertheless, knowing how it works is very important to get the best of the system.
This is a welcome development for LEO. Seeing the price of LEO today, is clear that most people that sold did so to have liquidity to invest in newer projects. With ACE and the lending, people who want to spread their wings upon the ocean won't need to liquidate their LEO.
It will be so interesting to see how the lending system perform, and Yes you can join us to ACE this up.
Join the presale from the link below.
