SURGE is the First Hive-Engine Product to Offer Limited Downside + Unlimited Upside and 19% Yield While You Wait
LeoStrategy is a permanent-capital vehicle designed to acquire and permanently stake LEO as sLEO on the Arbitrum blockchain.
Our mandate is simple: we build products and services that enable us to continually acquire capital and deploy that capital to acquire LEO.
Current State of LeoStrategy
Screenshot from our new Dashboard Analytics App for the LeoStrategy Fund
LSTR was the first offering we made to the market. Since the presale concluded on August 4th, 2025, LSTR holders have seen a rise in value from $0.90 to $5.50 today. If you bought into the fund during our presale, you would have made a 511.1% return in just the past ~7 weeks.
This immense rise in LSTR is only the beginning. As LeoStrategy's balance sheet expands, it enables us to capture more capital from the outside world. This capital is used to buy more LEO, which expands our balance sheet further. LeoStrategy's balance sheet expansion leads to more capital raises AND more revenue generation from our sustainable inflows (HE Market Makers, Cross-Chain LEO Market Makers, Cross-Chain LSTR & SURGE Market Makers).
Our fund model is built on strategic scaling and harnessing the flywheel of volatility to generate income which allows us to continually expand our balance sheet even in the event of a market downturn/inability to raise additional capital. Our model is very much inspired by Microstrategy but we believe we have a unique advantage in the market because of our low overhead and the unique nature of crypto markets and LEO's cross-chain setup.
With the cross-chain setup, LeoStrategy is able to have a unique moat on arbitrage. This allows us to profit on arbitraging all the cross-chain pairs of LEO, LSTR and SURGE. This arbitrage generates real cash flow which accretes value to our balance sheet. This value accretion results in our ability to purchase additional LEO, scale the balance sheet and use the scaled balance sheet to raise additional capital and continue our strategic scaling.
If you wish you bought the LSTR presale but didn't get in before it sold out, SURGE is the next best thing. This is due to the conversion option to LSTR that is baked into SURGE.
SURGE
SURGE is the first derivative product created by LeoStrategy. In this blog post, we'll dive into the details and explain SURGE to anyone who may be sitting on the sidelines because they don't yet know about the product and how it offers downside-protection, unlimited future upside + 19% yield while you wait. This post will simply & concisely breakdown:
- SURGE Downside
- SURGE Upside
- SURGE Yield
SURGE's presale is about to be moved to the Base Blockchain. We are currently anticipating our launch any day this week. The launch will coincide with our Cross-Chain Market Makers going live on the LEO/LSTR/SURGE Pairs. Generating income for the fund that is used to purchase LEO and scale our balance sheet.
SURGE Downside
SURGE's presale is priced at ~$0.80 per SURGE. This represents a 20% discount from the fair value of SURGE.
The fair value of SURGE is managed via something called "Liquidation Preference".
Liquidation Preference means that if the LeoStrategy fund were dissolved for any reason whatsoever, SURGE holders are paid back first (before LSTR Equity holders).
SURGE holders are guaranteed a $1 liquidation preference above and beyond the other asset(s) in our stack (currently, the only other asset is LSTR).
This liquidation preference governs the floor price of SURGE because buyers know that no matter what they can always get at least $1 for their SURGE in the future.
- Buy SURGE in the presale for $0.80
- When the presale is sold out, a liquidity pool(s) is created and seeded with $50,000 USD. The pool is priced at $1 per SURGE
- If you want to take profit on SURGE right after the presale closes, you are welcome to exit via this liquidity pool and collect a 25% profit ($0.20 profit per $0.80 invested)
- OR you can hold your SURGE and wait for LSTR to rise above $50 and get paid a 19% effective yield every single week while you wait
- Then, you can convert your SURGE to LSTR with unlimited potential upside. 50 SURGE converts to 1 LSTR (1 SURGE = 0.02 LSTR)
SURGE Upside
At the tail end of the section above, we mentioned the conversion option.
The conversion option allows you to convert 1 SURGE into 0.02 LSTR at any time (50 SURGE = 1 LSTR).
This conversion option means that it becomes economically viable to convert SURGE into LSTR once LSTR is trading above $50 per token.
For example, if LSTR is trading at $100 per token, you can convert 50 SURGE into 1 LSTR. Then you could sell that LSTR for $100. This means each SURGE is effectively worth $2. **A presale buyer would profit 150% from this conversion ($0.80 -> $2 = $1.20 profit per $0.80 invested into SURGE).
Currently, the conversion option is valued at $0.11. This means it is economically not feasible to convert your SURGE to LSTR. You're better off holding the SURGE since it has a $1 floor price ($0.89 more than the current conversion value).
However, as the price of LSTR rises, the conversion value rises proportionately. For example, when LSTR hits $50, the conversion value will be $1 (0.02 * $50 = $1).
It still doesn't make sense to convert SURGE to LSTR here because you're earning yield in SURGE and can convert to LSTR whenever you want to.
Instead, many will choose to sit in SURGE and continue getting their yield while holding onto the "in the money" conversion option. By doing this, you have infinite upside exposure to LSTR's price while getting paid weekly dividends to simply wait to exit at a higher price.
Let's say you HODL SURGE for a while until LSTR is $150. Then, you convert your SURGE to LSTR and cash out at a price of $3 per SURGE.
If you bought SURGE today at the presale price, your return would be 275% (not including all the dividend yield you earned along the way).
Holding SURGE means getting unlimited future upside, limited downside and yield while you wait for LSTR to perform well.
SURGE Yield
SURGE pays an effective yield of 19% to presale buyers. This comes from the stated yield of 15%.
The stated yield means that SURGE has a fixed yield of $0.15 per 1 SURGE per year.
If you buy SURGE for $0.79 (current presale price), you are earning $0.15 for each $0.80 invested = ~19% effective yield.
277 SURGE holders get paid dividends every Monday at 0:00 UTC. Track the dividend payouts onchain @surge.yield
The effective yield is the yield earned on the principle investment. This yield is superior to nearly every product on the market. All while holding an asset that is guaranteed to be worth no less than $1 at any point in the future AND has unlimited future upside because of the conversion to LSTR.
We designed SURGE to be the ultimate hedging tool for the LEO Ecosystem:
- Limited downside exposure (will never be less than $1 because of the liquidation preference)
- Unlimited upside exposure (will be worth more in the future because of the option to convert to LSTR)
- 19% effective yield while you wait (get paid HBD or USDC or LSTR every single week as a dividend yield payment while you wait for the conversion option to give you an instant return)
There are currently 277 holders of SURGE and over $1,652 in yield has already been paid out. Yield is paid out every Monday at 0:00 UTC.
If you hold SURGE on HE, you earn HBD or LSTR. Users can choose to be paid in LSTR which auto-converts their HBD dividend payment to LSTR and then sends the LSTR to your wallet.
If you hold SURGE on Base, you earn USDC.
By holding SURGE, you are entitled to the 19% effective dividend coupon. There are no staking requirements so SURGE is instantly liquid. Earn some yield and sell the SURGE whenever you want. OR hold on to SURGE and get unlimited future upside + yield while you wait to be right.
Does SURGE Make Sense to You?
This post is part of an educational series we've been doing on LeoStrategy and LeoStrategy-Products.
We know that financial tools like SURGE may get into the weeds for many people. We highly recommend taking some time to digest all of the points made in our content.
If you are left with any questions, please comment them below and our team will reply right away. We are so happy with the progress of SURGE which is now ~55% sold out. The presale is selling out fast and with the launch to Base imminent, we expect all SURGE to be gone very soon.
Of course, you can wait to buy SURGE when the presale is over. However, that would mean paying ~$1+ per SURGE as opposed to $0.80 per SURGE today.
- Buy SURGE on Beeswap: https://beeswap.dcity.io/tokens/SURGE
- Buy SURGE on TribalDEX: https://tribaldex.com/trade/SURGE
Posted Using INLEO
I like SURGE and I own some SURGE.
I'm thinking through a particular scenario.
We read that
And
Therefore, it is best to Buy SURG Now for the better effective yield, but Read On!
I think it would also be True that if you buy SURGE now, you can start to convert to LSTR at a profit once LSTR hits $40. Because at that price, 50 SURGE which you paid 80 cents each for, cost you $40 and is now (when LSTR is $40) worth $40.
So by buying SURGE NOW, you not only have a higher effective interest rate (19 vs 15 percent) while you wait for LSTR to pump, but you can also (if this is your desire) front run the crowd looking to convert SURGE to LSTR when it is profitable (and maybe then to USD).
IF the early presale buyers DO front run the late $1 per SURGE buyers, what might that do to SURGE and LSTR?
Well SURGE supply will drop as some of the supply gets converted (burned I guess), while LSTR supply rises? Or will the LSTR given from the conversion be from existing supply? This is probably discussed somewhere already but I don't remember seeing it.
Regardless of where the LSTR comes from for conversions, once conversions to LSTR are profitable for presale buyers, some percentage of those folks will sell their newly converted LSTR and take that profit. So does this SELL Pressure slow down the timeframe as to when LSTR hits $50 for everyone else to be in profit if the convert? Maybe.
So my conclusion is:
If you are going to Buy SURGE, there are several reasons to buy it NOW at 80 cents rather than $1 later. The higher effective interest rate has been stated many times, but I haven't seen folks talking about the ability to profitably convert at $40 instead of waiting on $50 LSTR. Maybe it has been noted, but I just didn't see it. :)
If you Are going to Buy SURGE, the only reason to Not buy now is if you think SURGE will sell under 80 cents in the future.
I would love to read anyone's thinking on why this might happen. If you do have such an opinion and decide to share why you hold it, please TAG ME so I can read what you write.
Thanks, and best wishes!
The conversions to LSTR will likely be spread out and there are a number of reasons for this
Many SURGE buyers are looking for downside protection and upside exposure in the long-run to LSTR while getting paid yield every week to HODL. This is the value proposition SURGE provides
Most conversions from SURGE to LSTR will happen later on. Why? Because many would rather HOLD the SURGE and get paid a dividend while LSTR rises. Afterall, they can convert to LSTR at any time. LSTR does not pay a dividend but SURGE does. Therefore, many will stick in SURGE even when LSTR is $100+
This effect allows conversions to take place at a variety of prices and timeframes because each user has unique needs. Majority of SURGE conversions will be when people want to cash out to fiat or some other crypto. That's totally fine and expected but its individual - not going to happen in droves
Thanks for sharing your thoughts!
I agree with the possible future you lay out here; there is a good chance it plays out like that. I would say that the fixed 15 cents yield per year on SURGE reduces in APR terms as SURGE surges past $1 which should happen as LSTR pumps past $50, so $100 LSTR means $2 SURGE means 7.5% and some folks may switch to HBD for 15%. But as you say, many will stay with SURGE because that should continue to rise as LSTR rises, whereas HBD is stable at $1.
I just bought more SURGE last night after I left my first comment. Go SURGE!!!!
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STOPI love the detailed explanation of SURGE. Thanks!
What's your estimated time for being available on BASE?
We will announce when we are ready 🦁
Right on, thanks!
Yes, I lost that LSTR opportunity because I capitalized on its price appreciation. Anyhow, thanks to SURGE, I can somehow compensate for my LSTR "loss."
Hope you can fill your bag with SURGE 🦁
My new target is 300 SURGE.