Level Finance

LGO Dutch Auction

Burn LVL to acquire LGO, access the LEVEL DAO

Who Can Participate?

Everyone with LVL!
The LGO Dutch Auction uses state-of-the-art theories in mathematics, finance, and economics to devise a formula protecting existing LGO holders from possible dilution caused by the LGO Dutch Auction. The auction serves as a vehicle to create a stronger link between LGO and LVL, boost demand for LVL, and increase the accessibility of LGO and governance as a whole by providing another avenue for acquisition. This mechanism was approved by the LEVEL DAO in the LEVELING UP: 1.5 Upgrade Part Two governance proposal. The anti-dilution paper describing the mechanism can be found below.

How Does it Work?

  • Asset at Auction: LGO
  • Bid Asset: LVL
  • Duration: 24 hours
  • Time: Will be announced
  • A fixed amount of LGO is offered, newly minted from the contract to the community, allowing users to acquire LGO and governance power


  • The starting price is preset by the protocol for the start of the auction
  • The floor price is preset by the protocol for the end of the auction (the lowest possible price)
  • The clearing price decreases linearly every second throughout the auction (24hr) from the start time
  • With every additional LVL commitment, the live token price increases
    • Token price = amount raised / token supply
  • The auction ends successfully when the current token price reaches the clearing price
  • In case the auction fails to meet the completion criteria, all committed LVL tokens are returned to the participants
  • After the auction is finalized, all participants are distributed LGO tokens proportional to their contribution to the pool at the last reached price
  • LGO tokens acquired via the auction are claimable immediately after the auction is finalized
  • The LVL tokens provided to the auction are burned
  • If the last bidder enters an LVL amount larger than the available amount for the auction to meet the clearing price then the unused amount will be refunded