# LVL Batch Auction

### **Who Can Participate?**

Everyone with USDT!

The LVL Batch Auction is a vehicle to deepen the protocol-owned liquidity of LEVEL, by offering Treasury-owned LVL to the public in exchange for USDT. This mechanism was approved by the LEVEL DAO in the [LEVELING UP: 1.5 Upgrade Part Two](https://dao.level.finance/proposals/0xc6e4b5b4b808192171846434574be85887a25b22776c7ececa3c355f5c753f7e) governance proposal.

**How Does it Work?**

* Asset at Auction: LVL
* Bid Asset: USDT
* Duration: 24 hours
* Time: Will be announced
* Offering a fixed amount of LVL from Treasury to the community, allowing users to exchange assets with the Treasury (USDT <> LVL)

<figure><img src="https://133323373-files.gitbook.io/~/files/v0/b/gitbook-x-prod.appspot.com/o/spaces%2FFJ6zbXbgFXVZp3qunySS%2Fuploads%2Ffro39GRKhuZzIyQvTrNy%2FLVL_auctions.png?alt=media&#x26;token=c7fad080-04a1-417d-8379-3f30a7181ce5" alt=""><figcaption></figcaption></figure>

### **Rules**

* The *ceiling price* of the auction is preset by the protocol
* The LVL token price is determined based on the total amount of USDT raised divided by the total number of LVL being auctioned
* The auction ends when one of the following conditions are met:
  * The auction time ends
  * The token price reaches the *ceiling price*
* After the auction is finalized, LVL tokens are distributed to participants proportionally to their contribution to the pool
* The USDT obtained by the Treasury is then allocated as follows:
  * 25% is paired with LVL from the treasury to deepen LVL/USDT Treasury-owned liquidity for the LVL utility token
  * 75% is converted to Senior LLP, deepening Treasury-owned liquidity for traders on the platform
* LVL tokens acquired via the auction are vested to participants for 24 hours after the auction has been finalized
* If the last bidder enters a USDT amount that corresponds to an overall price that is larger than *the ceiling price,* the unused amount will be refunded