With the DAO proposal #LIP05 LGO holders voted to stop the liquidity bootstrapping period before the 12-week lock expires.
After 27th January every Bootstrapping pool LP is able to withdraw their liquidity and stake it in the normal Mezzanine Tranche.
For more information please read the DAO proposal mentioned above.
What is Liquidity Bootstrapping?
To kickstart liquidity on the Level platform, we propose a mechanism that allows users to commit their assets to the platform for a duration of 12 weeks and earn LVL rewards in return. Instead of rewarding our users based on previous actions, they are rewarded based on their commitment to deposit assets to LEVEL.
How Does it Work?
In a nutshell, users must lock their assets (BTC, ETH, BNB, CAKE and stablecoins) for a period of 12 weeks. Once the lock period has elapsed, users can withdraw their initial deposit along with any accrued interest from protocol fees.
Key Bootstrapping events: - Lockup duration: 12 weeks - Deposits open: December 12, 2022 - Lockup period start: December 26, 2022 (launch of LEVEL DEX) - Lockup period end: March 15, 2023 @ 2pm UTC - Total LVL allocation: 1,000,000 LVL
The 12-week liquidity bootstrapping period opens on 12-Dec-22 @ 2pm UTC. Anyone who wants to participate in the Liquidity Bootstrapping event must deposit assets between 12-Dec and 26-Dec-22. After 26-Dec-22, you can not participate in the liquidity bootstrapping event anymore. Furthermore, you will not be able to withdraw your liquidity until Mar-15-23 (12 weeks). On March 15, the liquidity bootstrapping period ends and provided liquidity is no longer locked. Unlike liquidity which is locked for 12 weeks, any accrued LVL rewards are available for claiming beginning from 26-Dec.
To summarize, the liquidity bootstrapping period can be viewed as a form of an airdrop; however, instead of rewarding users based on previous actions, they are rewarded based on a commitment to provide liquidity to the protocol for a fixed period of time. This model aims to eliminate some of the mercenary capital that simply stakes staggering amounts with the intention of dumping underlying rewards immediately without contributing much to the community or supporting the project in general. We want to achieve an impartial yet totally fair launch while seeding the liquidity necessary for the platform to function as a viable marketplace.