LeoStrategy

Introduction: Here is a simplified explanation of the LeoStrategy Flywheel of Volatility Harvesting.

Summary

The core idea is to continuously profit from the natural price swings (volatility) of LEO and its related tokens, then use those profits to buy more LEO. This creates a self-reinforcing cycle (a flywheel) that perpetually grows the value of the LeoStrategy business and its LEO token holdings.

Breakdown of the flywheel

1. Market Making and Arbitrage

The process starts with "market making," which is the act of continuously quoting buy and sell prices for a token. In a volatile market like crypto, prices for the same token can differ slightly across various exchanges (a situation called "arbitrage").
LeoStrategy will deploy automated trading bots to buy LEO or its derivatives at a lower price on one exchange and sell it for a higher price on another.
The business specifically targets LEO, LSTR, and future SURGE tokens across multiple chains and platforms (e.g., Hive Engine, Solana), creating numerous pairs to arbitrage.

2. Competitive Advantage

Instead of competing with other market-making bots, LeoStrategy gains an edge by being "whitelisted" within its own ecosystem. This allows it to pay lower fees, enabling it to trade more profitably and outcompete other bots.

3. Capturing Profits

While other bots take their profits and leave the ecosystem, LeoStrategy is designed to do the opposite. The profits generated from its market-making and arbitrage activities are funneled back into the system.

4. Permanently Accumulating LEO

LeoStrategy uses the profits from trading to buy more LEO tokens. This permanently increases its own treasury of LEO tokens, expanding its balance sheet and providing a stable foundation for growth.

5. Fueling Expansion

With a larger treasury of LEO, LeoStrategy can launch new products and initiatives, such as the SURGE token and expansion onto new chains like Solana. This increases the total volume and number of trading pairs available for the business to market make. This creates more opportunities for volatility harvesting, which generates more profit, which is used to buy more LEO, and so on.

The flywheel effect

The flywheel works like this:

More LEO tokens are accumulated from market-making profits.
The larger LEO treasury allows for larger projects and expansion (e.g., Surge, Solana bridge).
Expansion increases trading volume and market-making opportunities.
More opportunities lead to higher profits, which are used to buy even more LEO.
The cycle repeats, with each spin of the flywheel making the next one bigger and more powerful. This creates a continuous growth loop for the LeoStrategy treasury and the broader LEO token ecosystem.

It's difficult to keep up with all the opportunities on INleo and HIve right now, so it's best to invest in the ecosystems you understand and with people you trust. So don't take my word for anything. read, see who is involved with the project, decide if you trust them, and then the real work begins, study what they are doing to be sure it makes sense to you, before you invest your money. Remember it's your money, only you will lose, so only you should decide.

New Signature 08/25/2025

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The End.

This post was written by @shortsegments

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