Bootstrapping Liquidity for Arbitrum

MOTIVATION

Following the DAO’s decision to expand to Arbitrum, the team has been relentlessly building cross chain infrastructure with the generous support of our new technology partners at Layer Zero as well as a new security mandate with Quanstamp. We’re about 90% of the way there. Over the course of the next three weeks, we will be rolling out a series of tools that will take the protocol one step closer to becoming a blockchain agnostic liquidity marketplace.

Starting with the LVL token followed by LGO, we will be migrating to an Omnichain Fungible token (OFT) standard. The goal is to enable cross chain fee aggregation where users can stake LVL on any of the blockchains where LEVEL is deployed and earn trading fees from the entire ecosystem. This will also apply to the redemption of LGO. When LGO is surrendered for treasury assets, pro-rata redemption of treasury will occur on all chains as Level’s DAO Treasury is considered singular across the entire ecosystem.

Subject to further testing along with bandwidth constraints of our external partners, we aim to start deploying these features as early as the week of June 12th. To ensure a smooth integration, there will be a series of preparatory steps that would require the DAO’s approval.

1. LVL Liquidity To make LVL tokens more accessible to users on Arbitrum, we propose the migration of the DAO’s LVL/USDT pool currently at (currently ~ $713,214) to Arb. This will ensure that new community members discovering the protocol for the first time will have immediate access to LVL tokens without experiencing unnecessary liquidity constraints.

2. Trading Pool Liquidity To enable access to Level’s trading features, we propose the migration of 3,555,192 sLLP (currently ~ $4,061,500) from the DAO treasury to seed trading liquidity on Arbitrum.

VOTING OPTIONS

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

Rules

• Only LGO token holders are eligible to vote
• This proposal requires at least 10 LGO voted to pass