Level Finance

Loyalty Program

The Loyalty Program expands the platform's reach and retains users once they start trading. This incentivization of trader activity establishes a positive feedback loop contributing to increased LEVEL trading volume, thus higher protocol revenue. Incentive rewards are distributed as LEVEL Loyalty tokens (lyLVL), based on fees paid by users when swapping assets or leverage trading (open/close/liquidation/borrowing).
For every $1 paid in trading fees, you receive 1 lyLVL

Participating in the Program

Whenever you pay trading fees to the protocol, whether through executing a Swap or Leverage Trading action, you automatically receive lyLVL. Minting lyLVL only takes place when paying fees on the trading platform, through the following actions:
  • Executing a Swap
  • Opening or increasing the size of a Leverage Trade position
  • Closing or decreasing the size of a Leverage Trade position
  • Having your Leverage Trade position liquidated
  • Borrowing fee paid when increasing or decreasing a position

Incentive Emissions

A total of 10,000 LVL per day are allocated to incentivize loyal traders at LEVEL. These LVL rewards are allocated to qualifying traders each day based on their executed trades.
The amount of LVL received depends on the following factors:
  • A trader’s daily trading fees paid to the protocol (opened, closed, and liquidated positions, borrowing fees, and swaps) = Trader lyLVL
  • The total daily trading fees at LEVEL (opened, closed, and liquidated positions, borrowing fees, and swaps) = Total lyLVL
  • Current LVL allocated to the Loyalty Program
LVL (per user) = (10,000 LVL * lyLVL (per user)) / lylLVL (total supply)
For example, if the total daily trading fees on LEVEL is $1M, 1M lyLVL is distributed to traders ($1M in fees = 1M lyLVL). If a trader pays $10,000 in trading fees (opened, closed, and liquidated positions, borrowing fees, and swaps), the trader will receive 100 LVL for their 10,000 lyLVL ($10,000 in trading fees = 10,000 lyLVL).
10,000 LVL * 10,000 lyLVL / 1,000,000 lyLVL = 100 LVL
If the daily trading fees on LEVEL doubled to $2M the next day, but the trader still earned 10,000 lyLVL, their LVL rewards would be halved to 50 LVL.
10,000 LVL * 10,000 lyLVL / 2,000,000 lyLVL = 50 LVL

Claiming Rewards

Users can access a dedicated interface showing their lyLVL balance for the current day and any pending LVL available to claim. At 2 pm UTC each day, LVL tokens are distributed to users and the entire lyLVL balance is reset to zero. You just have to navigate to the Loyalty Program interface and claim your LVL rewards — that’s it. There will be no official trading pool or any kind of incentives to hold, trade, or transfer lyLVL. Rewards of the Loyalty program are vested for 24hrs.