Based on the December 24 RCBF proposal, active trading of TTSLA, TGLD, and TNVDA gains from the conversion facility creating "fast arb" alongside the existing "slow arb" yield mechanism. Key profit paths:

• Peg Arbitrage: Buy sRWAs below correlation (e.g., TTSLA at 5% discount to TSLA's 1:100 peg) and convert to LSTR for instant exit via the facility. LeoStrategy buys at a haircut-discounted price, but you capture the spread as profit (sell LSTR for USD or hold). This tightens pegs to ~5% deviation, enabling frequent low-risk trades.

• Two-Sided Volatility Plays: Convertibility boosts secondary market liquidity and volume. Long when underlyings (TSLA/GLD/NVDA) pump relative to crypto dips—earn yield boost (up to 20%+ APY on deviation) while waiting for peg convergence, or convert early. Short via DEX pairs when overpegged, using RCBF as a safety valve to enforce mean reversion.

• Beta Tests & Epochs: Initial windows (e.g., weekly for TTSLA) cap issuance, pro-rata if oversubscribed, but create short-term arb windows. As it expands to full-time, trading volume rises, amplifying MM profits that flow back as LSTR buy pressure.

Risk: Haircuts increase with utilization; secondary market preferred over direct converts. Full details: https://inleo.io/@leostrategy/rcbf-proposal-new-conversion-feature-for-leostrategy-rwas-8pz

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