Level Finance
  • Introduction
  • Protocol Revenue
  • Earn Yield
  • Roadmap
  • Tokenomics
    • LVL Utility Token
    • preLVL Unvested Token
    • LGO Governance Token
    • Token Economics Overview
  • LEVEL DAO
    • DAO Treasury
    • Redemption Process
    • LVL Weekly Burn
    • DAO Proposals
  • Auctions
    • LVL Batch Auction
    • LGO Dutch Auction
  • Protocol Fee Structure
  • Platform Risks
  • Incentive programs
    • Fee Credit Program
    • Trading Incentives
      • Weekly Ladder
      • Loyalty Program
    • Referral Program
      • Incentive Emissions
      • Referral Tiers
  • Tutorials
    • What is Omnichain?
    • What is BNB Smart Chain?
    • What is Arbitrum chain?
    • Setting Up a Wallet
    • Trading Tutorials
      • Spot Trading
      • Perpetual Trading
      • Platform Restrictions
      • Pricing Mechanisms
      • Fee
    • Liquidity Tutorials
      • Trading Pool
    • Yield Staking Tutorials
      • LVL Yield Staking
      • LGO Yield Staking
      • LVL/USDT LP Staking
    • preLVL Vesting Tutorials
    • DAO Tutorials
      • DAO Staking (LGO rewards)
      • LGO Redemption
    • Auction Tutorials
      • LVL Batch Auction
      • LGO Dutch Auction
  • Incentive Program Tutorials
    • Referral Program
    • Fee Credit
  • Bridge Tutorials
  • Integration
    • Receive Trading Incentives
    • Receive Referral Reward
  • Security and Contracts
    • Security and Audits
    • Immunefi Bug Bounty
    • Price Oracles
    • Smart Contracts
  • Miscellaneous
    • Team Background
    • Brand Assets
    • Links & Social Media
      • Official LEVEL links
      • Wider Ecosystem Links
    • Level Newsletter
    • LEVEL x Zealy (Crew³)
    • FAQ
    • DAO Changelog
    • Liquidity Bootstrapping
    • Terms of Service
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On this page
  • What Solutions Does LEVEL Provide to Existing Problems?
  • Value Proposition

Introduction

NextProtocol Revenue

Last updated 1 year ago

LEVEL is an omnichain, decentralized and non-custodial perpetual exchange, with a focus on providing clear risk management solutions for liquidity providers (LPs). LEVEL is built from the ground up with an original codebase from entrepreneurs and contributors with over a decade of experience in the space.

LEVEL services the entire spectrum of market participants:

  • Traders who are looking to directionally position themselves or delta hedge their portfolio

  • LPs seeking to earn a passive yield on their assets

  • Potential shareholders with the desire to steer the future direction and own the treasury backing it through governance

What Solutions Does LEVEL Provide to Existing Problems?

  • Transparency

  • Self-custody

  • Elimination of intermediaries

  • Simple user interface

Transparency: LEVEL solves the problem of obscured Proof of Reserves and Balance Sheets on centralized exchanges. Users can enjoy the transparency of on-chain trading where all trader positions and balances are accessible, along with the entire liquidity and treasury of the protocol.

Self-custody: The platform offers a self-custody solution with full autonomy for users. Unlike traditional centralized exchanges (CEX), there is no personal record keeping, and no custody of funds required by LEVEL. The platform supports most major wallets including Metamask, Walletconnect, Coinbase Wallet, Frame, Ledger, and Trezor.

Elimination of intermediaries: LEVEL eliminates intermediaries in digital asset trading. One of the main features of decentralized finance is to enable self-sovereignty, empowering users with full ownership and self-custody of their assets, and reducing third-party risks experienced with centralized exchanges or institutions. The blockchain itself paired with LEVEL’s smart contracts assumes the role of these intermediaries of the past.

Simple user interface: The platform is built with a simple interface for users, reducing the barriers to entry for newer traders. This makes it easy for traders to execute trades while managing their leverage and liquidation price properly.

Value Proposition

LEVEL offers a unique value proposition, differentiating it from centralized and decentralized exchanges (DEX) in the cryptocurrency market.

  • Permissionless markets

  • Real Utility, Real Cash Flow, Real yield

  • Leverage up to 50x with either Market or Limit Orders

  • Minimal price impact trading and reduced liquidation risk with Chainlink Oracles

  • Oracles Innovative Liquidity

  • Omnichain Liquidity Hub

Permissionless markets: All exchange trades and swaps are self-executed by smart contracts, which means that even if the user interface goes down, users are still able to access and manage their positions. At LEVEL all traders are equal. There is no prioritized access, and everyone gets equal treatment, unlike some practices in traditional finance or on CEXs.

Real Utility, Real Cashflow, Real Yield: LEVEL’s utility lies in offering a decentralized, fully permissionless and non-custodial perpetual DEX. Liquidity providers, traders, and other stakeholders can generate real yield from platform revenue and participate in governance, opening up community ownership of the DAO Treasury.

Leverage up to 50x with either Market or Limit Orders: Users can margin trade with up to 50x leverage. The non-stablecoin assets are available to margin trade. Besides market orders, LEVEL offers on-chain limit orders for both perpetuals and swaps, increasing trading flexibility and the possibility of more complex strategies.

Minimal price impact trading and reduced risk of liquidation with Chainlink Oracles: LEVEL uses Chainlink Oracles to offer minimal price impact trades, improving execution for perpetual trading. Minimal-price impact means that trades made by a user do not move the market price as with CEX order books or spot DEX AMMs (Automated Market Maker - e.g. Uniswap), but may still incur slippage. Slippage is caused by external market movements between the time the trade is executed and confirmed on the blockchain, defined as the difference between the expected price of the trade and the execution price.

Omnichain Liquidity Hub: As blockchains transition towards greater modularity with increasing levels of customization and interoperability, activities like deploying capital, liquidity provision and trading take place across multiple chains. As such, LEVEL is pioneering an omnichain platform, offering its services across the ecosystem.

LEVEL Key Components

  • LPs: Provide liquidity to the system enabling anyone to trade

  • Traders: Utilise liquidity in the platform to trade available assets

  • LEVEL DAO: The platform's Asset Manager and ultimate strategic decision-maker

  • Dual Token Model (LVL/LGO): Balancing utility and governance of the ecosystem for all stakeholders