An Overview Of Leserve DAO

Leserve DAO is Olympus fork on Terra blockchain. The team of Leserve aims to leverage the Terra ecosystem by strategic partnerships and seeking integrations with other DeFi protocols.

Just as Olympus Leserve brings a lot of focus on DAO, which will be at the heart of the protocol and will shape its future.

Leserve plans to generate income and deliver value in a two part system:

1. Getting assets into the treasury: selling their own bonds to fill up the treasure; selling bonds of other protocols.

2. Deploying the assets in the treasury to generate returns. The strategies would include: flash loans, lending assets via lending protocols, buying out locked assets such as bLuna with a discount and issuing self-repaying loans.

Tokenomics

pLSRV is a precursor derivative of LSRV. It inherently gives the holder of the token the option to mint LSRV by burning pLSRV and providing the intrinsic value of the LSRV. E.g. An investor provides 1 UST and 1 pLSRV to mint 1 LSRV.

Team and investors hold 10.8% tokens, vesting of which are based on a market cap and not time. This means that at 1m LSRV supply, a maximum of 108k pLSRV can be redeemed. At 10m LSRV supply, it’s 1.08m pLSRV. pLSRV holders finish vesting anywhere from 2b to 5b supply.

On-chain metrics aren’t available, the token or protocol isn’t launched yet.

Without the LSRV and pLSRV there will also be sLSRV token which is a staked Leserve token accruing interest generated by the protocol’s APY. The token holders will also have voting rights, However, voting power tied to tokens will not be the only voting mechanism in the DAO.

sLSRV holders will be able to take a self-repaying loan against the fraction of their sLSRV holdings. sLSRV holders will also be eligible to receive discounts on the services of the Leserve treasury such as flash loans, self-repaying loans, buying out locked assets and other services that Leserve provides at the time of their holdings.

Team

The Leserve Core Team consists of seasoned software engineers, business leaders, designers, and university academics with highly profound experiences in founding organizations, researching, and engineering.

But this ‘about’ description from the official website is all information available about the team.

No Github account of the Leserve can be found.

Partnerships & investors

At this point, Leserve is self-funded and generally does not seek venture capital. The only extent to which Leserve may potentially leverage a very small inflow of external capital would be for the purposes of covering an independent security audit, which would bring additional source of trust in the protocol.

Social sentiment

The Twitter page was created in October 2021, so this must be when the project, or its concept, has begun. Since then Leserve grew by 18,4K followers, 5.2K of which joined in the last 30 days. The community seems strong and positive, engagement is average to good. You can see similar engagement for 3x or 5x larger (by following) Twitter accounts.

23,4K members on Discord, 3,7K of them are online. Again, chat is pretty active for relatively small mamerbs on the Discord.

The Medium page is laid out with the information explaining the project, which is pretty extensive. They post the content regularly on a weekly basis and it kind of compensates for the lack of a whitepaper.

Roadmap

At this point the launch date isn’t clear and the team doesn’t plan to disclose extensive details ahead of time. The launch methodology will largely depend on the Leservians (DAO).

Initial assets portfolio in The Treasury

Stablecoin - UST

Main crypto-asset of Terra - Luna

Liquidity pairs - UST-LSRV & LUNA-LSRV

Later, Leserve will explore more yield generating assets such as Anchor, Prism or Mirror together with the community after the protocol is successfully stabilized.

And the Terra ecosystem is just the beginning. Leserve plans to expand into more blockchains. By leveraging IBC (Inter-Blockchain Communication), Leserve would be able to become the reserve currency for the whole Cosmos chain ecosystem. Each and every chain that Leserve would potentially onboard (depending on the decision of the DAO), Leserve would accept its primary coin and its stable coin(s) into the treasury in the ratio of adoption. This would effectively diversify assets and essentially make it resistant to market swings in each chain/currency. Hence, this would further reinforce the OHM philosophy of (3, 3).

Summary

As with the projects highly focused on decentralization, there's no information about the team, so it’s hard to tell if the team is able to deliver.  

The project doesn’t have a whitepaper or a roadmap, there’s no investors except one that we do not know the name of, just allocation size. There’s no partnerships either, so there’s pretty much nothing to hold on to in regards to credibility and trust.

On a brighter note, socials looks pretty strong, although the community is small, it’s active and will possibly onboard more and more Terra fans. From the current state of the community I would say that the project appeals to the public so I expect it to continue to expand.

OHM forks isn’t surprising at this point, so if the project grows, I think it will start off slowly, which will give time to observe the project and collect more information. Basically, if the team will keep on delivering upon its promises, Leserve has a chance to adopt more users and be successful in the niche. Especially, when you think about the success of Olympus protocol and also the growth of Terra.

I wasn’t able to find any other OHM forks on Terra, so even if there will be more competition, Leserve will have a nice head start against others. To compare OHM forks on AVAX as an example, there are 22 OHM forks on Avax.