LEVELING UP: 1.5 Upgrade Part One [1/3]

MOTIVATION

In the coming weeks, we aim to propose a series of twelve upgrades to the LEVEL protocol under a three-part series. The goal is to materially improve accessibility to the platform, enhance treasury management, and enable real-time participation to the platform’s exponential growth.

After the DAO successfully implemented its first Treasury redemption on 02-12-23 14:00 UTC, a total of 0.36 LGO was surrendered and burnt to the zero-address at ~10.3k/LGO. While we commend the bravery of these early adopters and their selfless devotion towards reducing the total supply of LGO, in just three short days the Treasury’s liquid balance has grown to $1,348,031, roughly $39.3k/LGO. There is absolutely no reason for why the Treasury isn’t being utilized to supply liquidity when it could be earning $3,693/day (prevailing fees) for the DAO within the most conservative tranche (owning the same assets).

As we continuously optimize treasury management, it shouldn’t come at the sacrifice of platform utility. Rather than restricting redemption to just the liquid component of the Treasury, we propose to include LP tokens owned by the Treasury as well. If this proposal is approved, the Treasury will begin compounding fees from providing liquidity to LEVEL tranches. LGO holders will now receive pro-rata distribution of any LP tokens owned by the Treasury if they choose to surrender Governance tokens.

LEVEL is a project unlike anything preceding it. Rather than selling white papered vaporware, we built a functional product from the ground up. Instead of doing an ICO, we went with a completely fair launch. While the team could have captured the majority if not all the economics from strategic investors looking to gain exposure to the project, every dollar of direct investment went straight to the community owned Treasury. And will continue to do so indefinitely.

Consequently, we are also aware that some supporters of the platform are also yield seekers. To better facilitate the needs of the greater community, we want to propose a staking pool for LGO token holders. While more testing is still needed, we propose a split of 20% of the daily revenue generated to be awarded to LGO stackers. Over the long run, it doesn’t actually have any economic impact to most LGO holders, except 20% of the value would be continuously realized, while the remaining 80% becomes liquid at redemption.

PROPOSAL

1/12: Allow DAO Treasury to participate in providing liquidity within the LEVEL ecosystem.

2/12: Include LLP tokens owned by the treasury in bi-weekly redemption.

3/12: Enable LGO staking for up to 20% of the treasury’s daily revenue.

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

YES - Agree with the proposal. NO - Take no action.

ELIGIBILITY Only LGO token holders are eligible to vote.