LIP#14: Introduce DAO staking pool fee

MOTIVATION Implementation of LEVEL 1.5 is well underway, and we’ve introduced a number of exciting new features to the platform. We’ve witnessed incredible success in the Auction for LVL and a whopping 77,955 LVL being burnt during the first LGO auction at an average price of $253k/token. There couldn’t be a stronger vote of confidence and we’re excited to continue our journey in not only building the most efficient community owned liquidity market, but also drive value creation for stakeholders of the platform.

As part of the anti-dilution feature of the protocol, only small amounts of LGO will be auctioned following the growth of the DAO treasury. Any LGO minted via the burning of LVL, will also be matched for the DAO staking pool.

Given the short 24 hour vesting period, it has come to our attention that users could potentially purchase large amounts of LVL (either from the auction or directly from the AMM pool), and stake for an absurd amount of yield in the DAO pool following each LGO auction.

PROPOSAL In an effort to prevent individuals from taking advantage of the anti-dilution measure, we propose the implementation of a 40bps staking (deposit) fee for the DAO staking pool. All fees collected in this fashion will be burnt right after depositing, to further drive value creation for all existing LVL holders.

VOTING OPTIONS Choose one of the following options to vote on:

YES - Introduce the 40bps fee. NO - Take no action.

ELIGIBILITY Only LGO token holders are eligible to vote.