Has anyone run the math on this?
Would be curious to see thoughts, opinions and metrics
What kind of profitability can LeoStrategy achieve if it successfully launches a suite of derivatives and is the sole market maker + issuer for all of those derivatives?
It’s like a country being the central bank issuer + citadel-like market maker at the same time
Then add the fact that it’s trading all of it on LeoDex which fuels LEO growth which makes the central bank’s (LeoStrategy’s) balance sheet stronger
I’m trying to wrap my head around all of this. The implications of it are massive — IF LeoStrategy’s flywheel can gain the momentum it needs
Reminder: this only works if LeoStrategy’s derivatives get enough trading volume to be profitable for market maker ops
https://inleo.io/threads/view/leostrategy/re-leothreads-29cv9qm3h
I would say the comparison to a central bank is misguided. We are not dealing with currency in this instance.
Instead I would compare Leostrategy to a JPMorgan or some other kind of investment bank. One of the services is to provide products that are sold into the market place. This is not currency but assets that can rise and fall.
We also see the market making service, something major firms do.
Finally, we are looking at the ability to control the yield along with the supply.
The difference is the products are being backed the $LEO token. Naturally, JPM doesnt back its product offerings with any asset (unless it is an asset backed fund). MSTR is changing this with Bitcoin on the balance sheet as the backing coin.
The math probably is very similar to the math they ran as they were coming up with the idea of the Fedaral Bank!
Just the same way the USD is the base currency for most currency all over the world ? Is that what you are aiming at ?
Place some easter eggs in the number - so how
!BBH