It looks like people are not aware about what's on the table regarding the new Leostrategy's Product ACE. Maybe many don't understand what Leostrategy is trying to offer with the release of ACE, hence the less hype about it. ACE is not just another stablecoin being launched because we already have HBD, but rather it's created specifically for one purpose which is to function as the backbone of Leostrategy's lending platform. This is what makes it one of the most significant products that have ever been created on the hive network.
There has always been a key problem that LEO holders have faced. Whenever people need liquidity – whether to invest in other projects, deal with various needs, or rebalance portfolios – the only way to achieve the aim was to sell LEO. Now, ACE and the Leostrategy lending system is here to solve this problem.
ACE is a stablecoin design specifically to function as the lending asset for the Leostrategy's lending platform. People who needs liquidity can lock their Leo as collateral to borrow ACE rather than selling their assets. This will enable you to keep ownership of your LEO while still having access to liquidity when you need it. This is a massive step for a community that has been looking for better utility and rewards for holding.
The importance of this lies in the fact that this marks the very first lending platform on the Hive blockchain. The fact that lending, as a concept, is prevalent on other blockchain platforms, but not on Hive, adds significance to this new venture that ACE has enabled for Leostrategy. ACE has unlocked completely new territory for Leostrategy, and this is what makes this so special.
The lending system is going to change the way people interact with LEO. LEO will no longer considered something you accumulate and then sell off; rather, it is going to be a productive asset, something you can use without giving up ownership. This is literally a massive paradigm shift in mentality. When users no longer have to sell because they want cash or liquidity to invest in other projects, long term holding become more attractive.
ACE is not created for speculation purposes, but for its functionalities. The plan for borrowing, lending, and yield earnings is what ACE is created for. The presale discount of 10%, 20% APR on yield, are only additional incentives for buyers not the real deal.
Another factor worth considering is stability. As designed, ACE will keep its value of $1 through its peg stability mechanism, whereby it can easily swapped between other stable assets like USDC or HBD. This stability factor plays a very vital role in lending. There should be stability on the part of the borrower and the lender too; hence, the peg stability mechanism will give people confidence in using lending platform.
If you step back and look the bigger picture, you will find that ACE integrates seamlessly into Leo strategy’s perfect plan. They has been accumulating LEO with the ultimate plan of holding as much as 10 million tokens without selling any. The plan will be supplemented perfectly with the lending platform that will make people do the same with ACE.
Of course, this is crypto and there are always risks involved. There is no system that is entirely risk-free, and for those interested, there is a lot to learn about how lending works in this system. Nevertheless, as a concept, this is not new in crypto; what is new is that it is being brought home to Hive with a focus that serves LEO holders.
This is why ACE is so important. It is not because of the presale discount or short-term APR for early buyers, but because it provides a fundamental financial primitive that is currently lacking in Hive: collateralized lending and borrowing without losing ownership of your asset.
If people really understand what Leostrategy is trying to create here, then the conversation about ACE is going to be something you love to join. This is more than a token launch; it is infrastructure. And infrastructure is what last.
