Boosting LVL Liquidity Across Chains

Motivation

We seek to optimize LVL tokens liquidity and reduce the arbitrage activities that currently affect its stability. This proposal outlines a strategy to organically bolster LVL liquidity and consolidate its position across BNB Chain & Arbitrum. With the steps outlined, we believe this will benefit both the LVL community and its stakeholders.

Goals

Enhance LVL Liquidity Organically: By introducing new incentives, we aim to increase the liquidity of LVL across both BNB and ARB chains. Reduce Arbitrage Activities: By consolidating LVL liquidity, we can mitigate the impact of arbitrage actions, ensuring a more stable and predictable token environment.

Proposal

1. Incentive for LVL/USDT LP Staking:

• Users will be able to stake their LVL/USDT LP (available on PancakeSwap V2 - both BNB and ARB chains) and in return, earn protocol yield.
• It is important to note that the stakers of LVL/USDT LP will draw rewards from the same pool as the single-sided LVL stakers, ensuring a consistent reward mechanism across the board.

2. Enhanced Reward Rate for LVL/USDT LP Stakers:

• For every LVL token in the LVL/USDT LP staked, the user will earn rewards at a rate of 2.5 times more than single-sided LVL staking. This enhanced rate takes into account the USDT portion and potential impermanent losses that the staker might encounter.

3. preLVL Vesting with LVL/USDT LP Staking:

• LVL/USDT LP staking will also come with the added advantage of being able to be used for vesting preLVL. This will also be at a rate of 2.5 times more than the standard LVL staking mechanism.
• Example: 10 LVL is needed to vest 1 preLVL, so if you choose to stake LVL/USDT LP instead, the bonus rate will allow you to stake the LPs which contains worth of 4 LVL

4. Discontinue Current Incentive:

• To streamline the staking process and make it more beneficial for users, we propose to cease incentives for the current LVL/BNB pool.

Voting options:

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