To SURGE or Not to SURGE (That is the question)

about 17 hours ago (Edited)

SURGE: Weekly Yield Paid In HBD

On my return to online activities one of the first things I took a look at is the LEO Token. To my surprise LEO is essentially 2:1 with the Hive Token (One LEO Token is worth 0.56 Hive Tokens). This is both good and bad news. The bad news is I didn't get enough LEO at earlier price points but that thought is quickly dwarfed by the excitement of the LEO tokens current and on-going success. I haven't done any deep dive to see what is new among the LIONS at Inleo or on the Hive Blockchain in-general. However when scrolling the Inleo interface I see a new token has emerged known as SURGE. What does @rentmoney know about SURGE. To be honest not much but I did bump into two interesting posts. The first being the introduction post named Introducing SURGE | Earn Stable and Reliable 16.67% Yield. The second being a post by the Inleo creator khaleelkazi announcing they purchased 10,000 SURGE and planned on getting more. You might of notice the introduction post details a 16.67% Yield. This yield is for those who participate in the limited initial sale.

Once the limited initial sale is over the yield becomes 15%. What is the Yield? Good question: the Yield is paid out weekly in the form of HBD. From my understanding SURGE is planned to have a floor price of $1 USD with no ceiling put on the upside. Initial Sale to the amount of 500,000 SURGE with a 2M max supply. 50 SURGE can be converted to 1 LSTR at any time (check USD values of each before doing so). SURGE is always worth $1 at the liquidation preference and while holding it, you earn $0.15 HBD per 1 SURGE. When LSTR is worth greater than $50, it is economically feasible to convert 50 SURGE into 1 LSTR. How does one participate? Another good question. Hive-Engine is the choice of action for the initial sale. Liquidity pool for $50,000 SURGE:LEO will be launched after initial sale is sold out. There is allot to unfold and its best you click that introduction post to read the full details before deciding if you want to participate. Is @rentmoney participating. I have about 170 HBD that I'm giving some serious thought as my initial SURGE funding. Like all things recent I'll give it some thought tonight before taking action tomorrow. See below on how SURGE plans on maintaining the $1.00 floor cap with no limit on upside.

How Does SURGE Maintain $1?

SURGE is not a stablecoin. It is not intended necessarily to maintain $1. However the mechanics of SURGE are such that it should trade around $1.

How this works:

SURGE's initial sale is at $0.90 to give preference to early entrants
SURGE's stated yield is $0.15 per 1 SURGE or 15% APR based on a $1 price
SURGE's effective yield for initial sale buyers is ~16.67% ($0.15 on $0.90)
For every $0.01 SURGE is trading below $1, buyers can obtain a higher effective yield (paying less than $1 for something
yielding 15% at $1 par). The lower SURGE's price, the greater the effective yield which increases demand for SURGE
For every $0.01 over $1, the effective yield reduces from 15%
Conversion to LSTR at 50:1 means that when LSTR crosses $50, it is economically sensible to convert SURGE tokens to 
LSTR tokens (for example, if LSTR is $51, 1 share of SURGE will have a conversion value of $1.02

As I visit the Hive-Engine app and search for SURGE in the search bar I'm taken to the SURGE marketplace. If we take a look at the ask side of things we will see that almost 20% of the initial sale has completed. There is now roughly 416,000 SURGE left on the marketplace at the current asking price of 4.00 Hive Tokens.

Trade SURGE: https://tribaldex.com/trade/SURGE

Earlier I mentioned the Inleo founder purchased and created a post about the SURGE token but I forgot to leave the link to said post. Here it is now ---> I Bought 10,000 SURGE. If you are thinking about participating I urge you to read both linked posts for a better understanding of the SURGE project.

The LEO Token can also be traded on Hive-Engine (TribalDex) and currently has a 24hr sales volume of just south of $6,000 USD. Visit the following URL to trade for some LEO Tokens: https://tribaldex.com/trade/LEO

That's it for now, thanks for spending your time with the @rentmoney blog.