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Loyalty Program
It's simple: $1 traded = 1 lyLVL
A highlight aspect of sustainable growth is to retain users and community members. In order to incentivize and reward trading activity, traders automatically receive LEVEL loyalty tokens, abbreviated as lyLVL, based on the size (USD volume) of their swaps and closed trading positions. LyLVL can then be converted for LVL tokens after a 24h vesting period.
Simply put, for every $1 traded, you receive 1 lyLVL
The LEVEL Loyalty Program establishes a positive feedback loop that will contribute to increased trading volume on the LEVEL DEX and result in more protocol revenue.
A total of 16,000 LVL per day are allocated for traders on the LEVEL DEX.
To access your Loyalty Program page, click on your wallet address in the top right corner of the screen -> Profile
Below are a few examples to better understand how you can passively earn lyLVL.
🔸Q1: How do I participate in the Loyalty Program and earn lyLVL?
Whenever you make any trade, you automatically receive lyLVL as soon as the trade is executed (swap) or closed (long/short). Each user has access to a dedicated interface that shows their lyLVL balance and actions.
🔸Q2: I closed a BTC position worth $10,000. How many lyLVL do I get?
For every $1 of trading volume, you get 1 lyLVL. So, for a $10,000 trade, you will get 10,000 lyLVL. The ratio is always 1 lyLVL for $1 of trading volume.
🔸Q3: I have a balance of 10,000 lyLVL. How many LVL will I get?
It depends on 3 factors:
- how much you trade (USD volume)
- the overall (total) trading volume on the DEX
- allocated LVL rewards for the Loyalty program
Example A
On January 6th, the total trading volume on LEVEL DEX amounts to $1M which equals 1 million lyLVL distributed to traders ($1M in volume = 1M lyLVL total balance).
If 16,000 LVL rewards are allocated for that day, you will get 160 LVL for your 10,000 lyLVL
Calculation: (10,000 lyLVL) / (1,000,000 lyLVL) * (16,000 LVL) = 160 LVL
E️xample B
On January 7th, the total trading volume on LEVEL DEX amounts to $2M which equals 2 million lyLVL tokens distributed to traders ($1M in volume = 1M lyLVL total balance).
If 16,000 LVL rewards are allocated for that day, you will get 80 LVL for your 10,000 lyLVL
Calculation: (10,000 lyLVL) / (2,000,000 lyLVL) * (16,000 LVL) = 80 LVL
🔸Q4️: How do I convert my lyLVL for LVL tokens?
The LEVEL devs (aka Levelopers) will periodically run a function to redeem all outstanding lyLVL for LVL tokens. You just have to navigate to the Loyalty interface and claim your LVL rewards (see screenshot below). That’s it. Once converted for LVL tokens, your lyLVL get automatically burned.
🔸Q5: Are lyLVL transferrable? Can I sell them anywhere?
LyLVL is intended to be redeemed for LVL tokens only. There will be no official trading pool or any kind of incentives to hold, trade, or transfer lyLVL.
Note: When swapping between two stablecoins, namely BUSD and USDT, you will only get 1/20th of the lyLVL rewards compared to swapping or trading between any other two assets. The reason is that the stablecoin swapping fee is very low, resulting in proportionally lower fee revenue as well. For example: - when swapping $100 worth of ETH to another token, you will get 100 lyLVL (1$ trading volume = 1 lyLVL) - when between two stablecoins, say 100 USDT to 100 BUSD, you will get only 1/20th (or 5%) of 100 lyLVL which equals to 5 lyLVL The reason is that the general base swap fee is 0.20% while the base fee for specifically swapping between stablecoin pairs is only 0.01%. The platform earns much fewer fees from stablecoin swaps so the lyLVL reward is proportionally lower.
Last modified 1mo ago