Can 300,000 LEO Airdrop to wLEO holders get it to Binance or Bittrex?

in hive-126009 •  4 months ago  (edited)

It's exciting times to see HIVE and LEO on a different blockchain in the form of wHIVE & wLEO. Yeah, I know it's an old news but I only got time to read Leo Finance's post on Wrapped LEO today 😀

DeFi buzz has resulted in many tokens flowing into Ethereum Network. I heard that even ONT and ONG are now listed on Uniswap. These tokens were already listed on almost all CEXes worth their salt. But yet they needed to be on Uniswap.

However LEO isn't listed anywhere except Hive Engine. And it hopes to get a lot of exposure and trade volume through a listing on Uniswap, to pave way for its listing to CEXes. That's really a good approach. Uniswap can become a proof of concept for other Exchanges to get an idea of its liquidity and volume.

In this pursuit, Leo Finance has set a goal of maintaining $100K liquidity in Uniswap. To achieve this, it has outlined a simple principle:

more liquidity = more users = more attention = more listings

In the times of yield farming, it's also important to incentivize the initial liquidity providers to supply liquidity to wLEO pools. So Leo Finance has also taken care of it by allocating 10% of its 3M bounties fund.

It has proposed to airdrop 300,000 LEO / wLEO to LPs for the first 12 weeks.

So far, everything looks to be well planned. But I was just wondering if 12 weeks yield period will be sufficient to create all the hype aroud this token to sustain the liquidity after that?

300,000 LEO in 3 months comes to 100,000 LEO per month. If we get to $100,000 liquidity level, it will be like 1 LEO airdropped for each dollar of liquidity provided per month. Even if we take the recent high of LEO @10 cents, the monthly yield would be 10% i.e. 120% APY. And if liquidity gets to $200,000, APY will come down to only 60%. But on top of it, investors will also get 0.3% trading fee.

A consistent 60% APY is good enough to attract large investments into the pool. But seeing the recent trends and returns in yield farming, even 120% APY doesn't seem enough to me. 😜

And if it's only for 12 weeks, it's a trouble to power down for 4 weeks to convert to wLEO and pay Gas to move to Uniswap and back and power up. Or should I expect high trade volume after 3 months to get a better compensation from trading fee alone to continue providing my liquidity?

Honestly, I don't foresee a high trading activity. Presently, 90% of LEO is staked implying that people like to keep it staked to earn curation rewards. Trading activity increases in a volatile or speculative market. But 90% staked coins provide LEO prices a good stabiloity. So I feel, I'll have to move back my liquidity after the airdrop period is over.

So would this 90 day show be enough to get all the attention to get a listing at some big centralized Exchanges? I really doubt. May be, I'm sounding too pessimistic here. But what do you feel?

If you're planning to provide liquidity to the wLEO pool, do you plan to keep it after 90 day period is over?

Okay, what if this airdrop scheme is modeled differently?

If you provide a liquidity of 1000 LEO for a period of 1 year and in return Leo Finance delegate you 1000 LEO for a year, would you feel inclined to provide liquidity for a year? I mean what's the loss? You only need to supply ETH component and incur some gas and you get equivalent stake on Hive chain too. Neither LEO Finance lose anything nor you as yield incentive is provided through inflation pool. So bounties fund will remain intact after one year.

At the rate of 10 cent per LEO, $50,000 LEO will mean 500,000 LEO delegation. (The other $50,000 will be ETH supplied by the LP). I think, this much power up & delegation can be managed by the bounties fund.

This will assure a 1 year liquidity without spending anything from bounty fund.

This solve another issue of Trust. To trust a liquidity pool of an "unrecognised" token, liquidity needs to be locked at least for a year. UniCrypt provides a good interface to lock promoter's liquidity. The higher the lock in period, better is the Trust Score for that project in UniCrypt Browser.

So every Liquidity Provider willing to get the "airdropped" delegation would need to provide Proof Of Liquidity by locking their UNI-LP tokens at least for 6 months or a year on platforms like UniCrypt and then can request / avail the delegation.

If there is higher liquidity, there will be low slippage. Thus LPs don't lose on slippage.

It would be good if Leo Finance can also initiate a wLEO-wHIVE pool. Since LEO is listed only on Hive Engine, a wHIVE-wLEO pair will help in calibrating market price of wLEO in wLEO-ETH pair. Otherwise, arbtraging will become a daunting task.

In turn, this will also give some push to wHIVE pools on Uniswap.

In addition to all these, Leo Finance team should also make a provision for a little more tokens for giveaways. Along with the launch on Uniswap, Leo Finance team need to promote the project through various AMAs in different Telegram chats, Twitter, Discords etc. Some promotional budget to cover themselves by YouTubers, etc. is also needed. But I hope it's all planned too. We'll see.

Are you going to supply some liquidity to wLEO pools on Uniswap, Balancer etc.? How much return do you expect from trading fee alone after 3 months?

I'll like to provide some in the airdrop phase but I'm not yet decided for how much amount I should put in there. How about you?

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Everybody is talking about wLEO tokens and the sustainability on the ETH exchanges, but I would take a look also at the services and the value behind the token. I mean what if the token will increase its price x10, I don't see how that would be translated into real value in order to continue to grow and not fall. Maybe you have any idea on how this would play out...

Posted Using LeoFinance

What's the "value" for you?
Nobody can say what's the fair value for it. Fair value is actually arrived at through large exposure to the markets. It's the community participation through market transactions that decide what it's worth for.

If you ask me, it's highly under-valued at the moment ....even if it goes 10x to $1, Because when it will go to $1, I expect community size and participation to increase resulting in more quality content in this ecosystem. Leo Finance community is a super micro-niche serving only investment related content. And if you can derive some value out of that content, you wold like to confer some value to its token. Revenue from advertising on the platform will also increase with the growth in visitors. So it will result in more token burns ...adding more value to the token. You will see more use cases for LEO as time passes. Stay tuned :)

What do you see for kind of value of this token? I know it is like hive - you get it by blog or power. But is it any other way to use it? Like DEC - to buy things in steemmonsters or !BEER to tip good content.
Thanks for the post !

Well, I expect to see more use cases for LEO with time. But even at present it's highly undervalued as it's community comprises of very small but defined niche of investment & market related content, which investors find it very valuable. But market will decide what it's worth. Let's see.