I think their 1st blog post talked about this
The initial sale is 100k LSTR and 100% of what they raise from that will buy $LEO
Then they'll use that as collateral to buy more LEO by raising capital from IRL Investors who are willing to use the LEO POWER as collateral against the loans with no liquidation price
yeah I agree! But with leverage into play you would expect the number of LEO that could be purchased with 1 LSTR token would increase. Right now 1 LSTR gets you +/- 17 LEO.
Without leverage 1m x 17 leo = 17m leo already.
If leverage comes into play I don’t understand the max supply (as we won’t need that)
if the ratio leo/lstr increases the investment is more profitable. If the ratio decreases the investment becomes less profitable compared to just buying leo yourself.
Therefore you would expect a leverage >2x but that way you would also expect a max supply of 1m / leverage ratio (assuming 17m leo goal