LIP#11: Undistributed Protocol Fees

Per our previous proposal in LIP#10, we are aware of an issue in the LLP pricing contract that caused fees from leverage not to be correctly added to the final summation. This resulted in an accumulation of excess LP assets in the form of 3.2579 BTC, 37.6582 ETH, 578.4496 BNB, 80.9995 CAKE, 132301.84 USDT and 275797.06 BUSD.

Given that the community voted no to LIP#10 to redeem existing LP tokens and distribute excess residuals to liquidity providers, the team went back and recalculated every LP position since inception along with their pro-rata ownership of the residual value currently sitting in the liquidity contract (even those who may have sold their LP tokens along the way).

PROPOSAL A summation error in the Liquidity contract resulted in the above amount of BTC/ETH/BNB…etc of accumulated assets. We wish to return this value back to all LPs that participated in the liquidity contract since its inception. To do this we can either transfer the excess value to a separate redemption contract and distribute fractional tokens in kind, or indemnify affected LPs with LVL tokens at 5$/token by exchanging the excess LP tokens for LVL in the Treasury.

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

1. Liquidity providers receive a basket of fractional BTC/ETH/BNB/CAKE/BUSD/USDT from a recovery contract.

2. Liquidity providers receive LVL from the Treasury at 5$/token. The total LVL from the Treasury to Liquidity providers will be 144,348 LVL, and the liquidity providers will be able to claim the linear vested LVL in 2 weeks (10310 LVL daily for 2 weeks). The unclaimed fees in the form of BTC/ETH/BNB/CAKE/BUSD/USDT will be converted to Senior tranche LLPs and belong to the LEVEL DAO.

ELIGIBILITY Only LGO token holders are eligible to vote.