#LIP05: End the Liquidity Bootstrapping Pool

MOTIVATION Prior to launching the LEVEL protocol, we implemented a bootstrapping period that enabled users to commit their assets to the platform for a 12-week duration and earn LVL rewards in return. As a gesture of appreciation for our early supporters, we allocated 1.1M LVL tokens (equivalent to 1.5 million dollars at the time of writing) for those who locked their liquidity for the 12-week period. However, the rapid growth of the platform has now made this bonus a potential liability.

As of now, there are around 740k LVL remaining on the bootstrapping contract (360k have been distributed already), which is intended to be distributed among liquidity providers for the remaining 8 weeks. These tokens have no vesting schedule.

Link to announcement article (11 Dec 2023): https://bit.ly/3DaFUMS Link to Liquidity Bootstrapping Pool: https://app.level.finance/liquidity/bootstrap

PROPOSAL In order to mitigate the potential burden on the platform growth, we propose the following changes:

• Bootstrapping LPs will cease receiving LVL rewards on January 27th at 00h UTC.
• Bootstrapping LPs will also be able to withdraw their deposited assets starting from January 27th at 00h UTC
• We will transfer 550k LVL (half of the initial promised amount for the bootstrapping period) to the Treasury, to be managed by the DAO.
• The remaining LVL in the contract (estimated at around 130k LVL minimum) will be claimable to the bootstrapping LPers over the next 2 months on a pro-rata basis, starting from will start 1st Feb. These tokens will be automatically staked in the DAO.

This proposal is available for voting on January 25 and will last for 24 hours. If it passes, it will be implemented on January 27.

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

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

ELIGIBILITY Only LGO token holders are eligible to vote.