@criptocu 1 February 2026

A new lending system for you If you don't know, read this post to find out. Jokes aside, the ACE Token represents a significant innovation within the decentralized finance (DeFi) ecosystem especially in Hive. It is tailored to the LEO Economy and developed by @leostrategy, a LEO Digital Asset Treasury organization. ACE is positioned as an overcollateralized stablecoin designed to provide stability, yield opportunities, and lending utilities. Ensuring each $1 of ACE is backed by at least $1.50 in collateral. This approach aims to mitigate volatility risks while offering attractive incentives and enhanced lending capacities. Right now is running [a presale campaign](https://leostrategy.io/ace). At its core, ACE addresses common pain points in DeFi, such as collateral efficiency, yield farming, and cross-chain interoperability. With mechanisms like a Peg Stability Module (PSM) Swap to maintain the value through 1:1 exchanges with USDC or other stable assets. This peg is crucial for its role in LEO Lending, where users will can borrow against LEO collateral at competitive rates (4-8% APR). Early adopters, particularly presale participants, gain exclusive perks, including boosted yields and priority access to features. So if you have interest while soon you buy better. ### Background on LeoStrategy and the LEO Ecosystem LeoStrategy operates as a treasury intelligence entity focused on the LEO token, which powers [InLeo](https://inleo.io/signup?referral=yecier), a microblogging and social media DApp on Hive. LeoStrategy's initiatives, including ACE, aim to enhance LEO's liquidity and utility by introducing financial derivatives. For instance, prior projects like LSTR (LeoStrategy's share token) have set the stage for liquidity pools and AI-powered tools, such as the APEX AI Copilot, which assists users in managing assets. The introduction of ACE builds on this foundation, positioning it as the base for LEO Lending allowing users to mint stable value by depositing LEO as collateral, redeem it with a stability fee, and participate in yield-generating activities. This integration with Hive's ecosystem is evident in community-driven promotions, such as [ACE Quests](https://leostrategy.io/quests?ref=7AD278A5)—a limited time event with a $2500 prize pool to encourage participation through tasks. ### Key Features and Mechanics For you information, ACE's mechanics revolve around three primary actions: minting, holding, and redeeming. To mint ACE, users deposit LEO tokens as collateral at a safe ratio, ensuring overcollateralization to protect against market downturns. Once minted, ACE can be held as a stable asset pegged at $1.00, used in LP provision, transferred, or staked for yields. Redemption involves returning ACE to unlock collateral, minus an 8% stability fee, which contributes to the system's sustainability. A standout feature is the yield boosting system. Presale buyers can stake ACE immediately at a 10% APR, which unlocks to approximately 20% APR post-launch, plus additional LP swap fees. This is structured as single-sided staking with no lock-up periods and weekly payouts in real yield—meaning rewards are derived from actual protocol revenue rather than inflationary tokens. Lending tiers add another layer, with presale participants enjoying higher caps (up to 30% increased capacity), lower borrowing fees, and early access. The lending protocol unlocks fully at 100% presale completion ($500,000 sold), allowing users to borrow against LEO at rates as low as 4%. So the opportunity to secure boosting is now. The Cross-chain capabilities are also teased, enabling ACE to bridge liquidity beyond Hive, potentially integrating with blockchains like BASE for broader adoption. ### Risks and Challenges I wouldn't be serious if I didn't talk about the risks. And, ACE carries inherent risks. Overcollateralization protects against depegs but exposes users to LEO's volatility—if LEO drops sharply, liquidations could occur, though the $1.50+ ratio provides a buffer. Although, let be honest, this is normal in lending systems. In other hand, the 8% redemption fee might deter short-term users. In addition, regulatory scrutiny on stablecoins remains a concern, though Hive's decentralized nature offers some resilience. Full [INLEO](https://inleo.io/@yecier/deep-in-on-ace--7dd)