Should LBI change it's LEO Strategy?
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So a few days ago, I put out a post covering off our LEO wallets, and plans moving forward for our LEO positions. As a frame of reference, you should check
before I outline my newest thought process to gather feedback on.
Anyway, here is what I've been thinking about today.
Should we just buy a bunch of LSTR (LEOStrategy) tokens instead of managing our own off HIVE LEO?
Announcements have come out recently that @khaleelkazi has officially become "Executive Chairman" of @leostrategy and @taskmaster4450le has been appointed "Chief Marketing Officer".
Here are those announcements:
And Khal's post about the new job -
Firstly, I will say that it is good to have some faces to put behind the @leostrategy brand now. It always sat a bit weird with me that the people behind it were staying anonymous, it was just off-putting for me. For wanting to be the Microstrategy of LEO, the anonymity just led to me wanting to keep us away from the set-up. But having some clear and public faces behind the project gives me more confidence in it as a legitimate investment option for LBI.
But why would we buy LSTR, aren't they a competitor?
Not really, any entity buying up LEO is a friend. We have a nice bag of LEO, and our own plans and goals moving forward. There is room for other players, and LSTR being successful would be good for LEO, thus good for LBI.
What I'm really thinking is to hold LSTR instead of managing our own LEO off-HIVE position. LSTR's plan is to shift ALL of it's LEO to Arbitrum and stake it there as sLEO. Our plan is to shift a portion of our LEO over, but retain a nice chunk on HIVE to keep doing our thing here.
Maybe, instead of shifting our LEO off chain, we can simply buy LSTR instead. Personally, I really prefer to outsource the management of our off-HIVE holdings. As I see it, this reduces my admin burden personally, given my LBI pay is not significant and running this project is basically a hobby. We hold PWR as an off-chain exposure to ETH mainly, (with @empoderat looking after those funds). We hold RUG as an off-chain exposure to some DeFi (with SSUK via @dailydab project managing those funds). Why not treat this the same way and hold LSTR (with @leostrategy managing the sLEO position for us).
I have questions for @leostrategy before committing to this course, along with wanting feedback from LBI holders.
Will more of the people behind LSTR become "public"?
Would you consider OTC deals for LSTR? Our funds that we could commit to this are in liquid LEO. I'd have to sell a large chunk of LEO (pushing down the price), trade to HIVE, buy LSTR, and then you would just use that HIVE to buy LEO. How about just issuing us LSTR directly for LEO instead, and save the price fluctuations and unnecessary steps?
Is it planned for LSTR to become a yield generating asset? Once the LEO is staked on ARB, it will generate USDC yield. Will some of that be paid to holders, or is it planned as full growth and all yield used to buy more LEO - with capital growth the only goal?
That's about it at this stage, I'm sure LBI holders will have more thoughts or questions, and I'd love to hear from the @leostrategy team. Let's see if we can bring together these two LEO focused investment funds for mutual benefit.
Over to you all in the comments,
Cheers,
JK.
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