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@jem
We're working to launch MegaStrategy very soon, enabling users to harness volatility and gain exposure to leveraged ETH. But how does it work?
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@jem
First, the bootstrapping event. We'll be launching a fixed price sale, powered by @axisfinance, to build the initial treasury of ETH. At the end of the sale period, successful buyers will receive the MGST token. The Axis DTL callback contract will also automatically seed a Uniswap V3 pool with 10% of the proceeds. What does that MGST token represent? It's proportional exposure to MegaStrategy's onchain treasury. MGST will also be the governance token for the protocol as we progressively decentralise it.
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@jem
Putting ETH into a treasury isn't interesting, though. Wouldn't it be better to just hold ETH? Except, like with MicroStrategy, it's a leveraged exposure to the underlying asset (ETH). How does the protocol achieve leverage? Convertible tokens.
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After the bootstrapping event, we'll schedule a second event - the first convertible debt auction (again, powered by Axis!). Bidders will provide an amount of USDC and a price per convertible token. The auction will settle at the same price per convertible for all successful bids (think treasury auctions), and successful bidders will receive the "cv" tokens. The protocol will also seed liquidity for the cv tokens.
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