Rewards Emission Mechanism Update
▶ TLDR: If the DAO accepts this proposal, only the distribution mechanism will change
▶ Voting start: Saturday, 7th January 2023 at noon GMT
▶ Voting end: Monday, 9th January 2023 at noon GMT
▶ Vote HERE 📣
Introduction
As part of our efforts to promote sustainability, we want to update the LVL reward emission mechanism for liquidity providers in LEVEL trading pools. Currently, all LVL farming rewards for LEVEL liquidity providers can be claimed immediately. However, with the update, these rewards will be automatically staked in the LEVEL DAO contract, which has a 10-day unstaking period (also known as a “cooldown period”).
IMPORTANT: This emission mechanism update only affects LPs in Senior, Mezzanine and Junior Tranches. The LVL/BNB LP farm emission mechanism remains unchanged.
But what is the LEVEL DAO contract, you ask?
As we mentioned recently in our Q1 2023 Roadmap article, the LEVEL DAO will serve as the platform’s Asset Manager and ultimate decision-maker on strategic matters.
The screenshot above shows the DAO page, where users can stake their LVL tokens to earn LGO, the DAO governance token. In order to unstake their LVL tokens, users must wait for the 10-day cooldown period to pass.
Here’s an interesting twist: LEVEL liquidity providers will also become LGO holders by default. With the update, since all LVL rewards for liquidity providers are staked in the LEVEL DAO contract for at least 10 days, they will also earn LGO tokens during that period. By holding the LGO token, users can participate in DAO proposals and voting, and gain exposure to the DAO Treasury (which is already approaching $10k in accumulated fees).
Coming to the First LEVEL Governance proposal
This emission update proposal is a result of community feedback. The LEVEL dev team will be using this topic for the first LEVEL DAO voting proposal, and all LGO holders are invited to participate.
▶ Voting start: Saturday, 7th January 2023 at noon GMT
▶ Voting end: Monday, 9th January 2023 at noon GMT
▶ Vote HERE 📣
Be sure to join our governance channel on the LEVEL Discord as we prepare for the first vote.
LEVEL is a decentralized and non-custodial perpetual DEX on BNB Chain with custom risk management and innovative LP solutions. Experience LEVEL’s advanced DeFi venue that offers a great user experience, leverage trading, and real yield. Start trading on LEVEL today and take control of your decentralized trading journey.
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