LEVEL 2.0 - A Closer Bond with LVL

With the Level 1.5 upgrades, we successfully achieved a number of significant milestones in line with our goal of becoming an omnichain protocol. To that end, we expanded to Arbitrum, launched omnichain referrals and staking, announced a new strategic investor with a total commitment of $20M, exceeded over $20B in protocol volume, and released improved dashboard visualization tools.

The team continues to push forward with execution and design improvements with the ultimate goal of having the best omnichain liquidity marketplace user experience in all of DeFi.

The immediate next step is LEVEL 2.0, where our target will mainly focus on improving LVL reward design and incentive alignment. A summary for LEVEL 2.0 can be seen in our roadmap in a very near future after this proposal gets passed.

Similar to the LEVEL 1.5 upgrade, we aim to release LEVEL 2.0 in a three-part implementation, starting with part 1.

Proposal LEVEL 2.0 part 1 - Bonding Mechanism

LVL incentives will no longer be distributed directly to traders or liquidity providers. Instead, we will reward with an unvested version called preLVL.

Users have 2 choices to vest preLVL tokens:

• Normal vesting: Users may stake and lock LVL tokens in order to vest preLVL tokens. To vest 1 preLVL token into 1 LVL, users will be required to stake 10 LVL tokens for 1 year. Users can claim vested LVL, stop vesting and/or unstake at any time.
• Accelerated vesting: Users may pay fees in USDT in order to vest and receive preLVL immediately. To vest and claim 1 preLVL token immediately, users will need to pay a 30% tax in USDT. Assuming that $LVL is $3, users would then need to pay 0.9 USDT to immediately realize the conversion. The taxed USDT will be split 50% to the DAO, and 50% to the LLP.

Voting options:

• For: Agree with this proposal
• Against: Do not agree with this proposal
• Abstain: Do not have strong opinion about this proposal