The Evolution of wLEO

in LeoFinance6 days ago

It is less than 48 hours until wLEO goes live and is open to the general public. This will be a breakthrough for the tribes on Hive with LEO being the first to move offchain. It follows the path that wHIVE took. The big difference is that things, hopefully, will work out a bit different.


$100,000 Liquidity Pool

To be successful in the DeFi market, liquidity is vital. Those projects that have a fair amount of liquidity provide confidence to investors. There is nothing worse than taking a big stake in something and not being able to exit because of a lack of liquidity.

A lot of large LEO holders are volunteering to step in and provide liquidity. Leofinance itself is going to put up $20,000 towards the LP in an effort to get it as funded as possible. Couple this with the large LEO holders who are going to move tens of thousands of LEO (along with the equal ETH) and we could see a well funded LP after a week or so.

Put On Other Exchanges

Uniswap is the only start of the planned evolution of wLEO. The idea is that, once a token is ERC20, it is easy to move the token to other exchanges. This will likely start with the other decentralized exchanges and, possibly, move to centralized ones.

This could provide another important variable in the DeFi world, activity. Without volume, projects face the same problem as a lack of liquidity, investors shying away because they can't get out of their position.

Arbitrage opportunities exist when many exchanges are carrying the token. Some will be more liquid than others, providing a closer spread. Thus, we could see situations where one can buy on one exchange and sell on another for a profit.

Refill The Liquidity Pool

Uniswap requires a liquidity pool to be funded with wLEO and an accompanying amount of ETH. It has to be a 1:1 ratio. Of course, as trades take place, this ratio will shift. At the same time, depending upon the availability tied to the demand, prices might increase.

An increase in the price of wLEO would enable one to refill the liquidity pool. This is done by taking the wLeo out of the pool and selling it on the market. Presumably there will be a profit which will move the originally staked ETH as well as the same from the sale of wLEO to end up in one's wallet.

If the person has additional LEO, this could be wrapped, and placed in the liquidity pool along with the matching ETH. Thus, we see more LEO in the wrapped state while the individual booked a nice profit from the original run up in the wLEO price.

The key is going to be whether non-Hive people will start buying wLEO and adding to the liquidity pool. There are obviously LEO (wLEO) rewards being added in addition to the transaction fees. Is this enough incentive to attract outside users to get involved? Time will tell but this is what gets the juices of those on the Ethereum DeFi network going.

It could be an interesting 90 days.

If you found this article informative, please give an upvote and rehive.

gif by @doze


Posted Using LeoFinance Beta


I think I'm motivated enough to join in the league of users who'll invest in wLEO. 300k LEO rewards for those providing LP for wLEO is huge.

Posted Using LeoFinance

It will definitely be interesting months ahead for the team and the community. I am hoping that it will also provide benefit to the Hive ecosystem and motivates other communities to bring forward innovating ideas to evolve and expand.

Posted Using LeoFinance Beta

That last bit is what I am thinking since I didn't see much volume on the wHIVE I am wondering if ETH traders will have a look at this new pair, even if a small amount do they'll bid up the price pretty quicky and we as users could not create tokens fast enough to put on the exchange it would really squeese the pool.

I guess none of us know what could happen, but I am sure the LEO team will do some extra marketing to get it out there and encourage trading

Posted Using LeoFinance Beta

The journeying of LEO to ETH blockchain is to me the path to salvage HIVE. LEO will hit $5 soon and such could be a motivation to get some HIVE. Though, some thoughts came to my mind...

Posted Using LeoFinance

If the price of LEO rockets it means LEO users can pick up HIVE cheap too which means more HIVE gets picked up and if it is a success we could see more tokens try to replicate this and even have more native markets like dswap too so we don't know where this is all going but it seems a step in the right direction

Yes the marketing is surely needed. We do not know what will happen but hopefully getting a few more eyes starts the volume going. It is a game of liquidity and volume. The underlying project means little to most who are playing in the DeFi world.

Posted Using LeoFinance

It is less than 48 hours until wLEO goes live and is open to the general public.

Anticipating this epic development

Posted Using LeoFinance

So what do you think? A nice price pump for the next couple of days? Maybe overtake Hive and Steemit price?

Posted Using LeoFinance

I am not sure how long it will take. The liquidity pool might take a few weeks to fill up since many are dealing with power downs.

A pump would not surprise me...followed by a dump. That is how it usually goes.

As for where, my feeling is that it is an all or nothing market. If it does pump, it will go insane. There is a good chance, of course, it goes nowhere. So a coin flip.

Posted Using LeoFinance

Bang, I did it again... I just rehived your post!
Week 23 of my contest just can now check the winners of the previous week!

I think this is a great project and I see the delay as an opportunity those whose Powerdown didn't come in time to have more LEO tp invest Ha HA !

By the way do you know about the coming HardFork? I read the article by blocktrades. But I heard there were suggested changes to the post payout to reduce curation reward percentage? I don't see that mentioned by Blocktrades. Do you know if it will be implemented?