Protocol Revenue

Fee Collection

The platform generates revenue through fees charged for its usage. These fees take various forms, including:

  • Position fee for perpetual trading

  • Liquidation fee

  • Dynamic borrowing fee (interest rate for leveraged/perpetual trading)

  • Swap fee

  • LLP minting and burning fee (LLP = Level Liquidity Pool)

  • Accelerated vesting fee (preLVL vesting) (Note: This fee will be distributed equally, with 50% to the DAO and 50% to the LLP.)

For more information, see Protocol Fee Structure

Fee Distribution

Revenue is distributed from fees collected on the platform. These fees are routed as follows:

  • LLP Fees = 45%

  • LVL & LVL/USDT LP Stakers = 10%

  • DAO Treasury = 30%

  • LGO Stakers = 10%

  • Reserved for Development = 5%

Proposals passed by the Level DAO can change protocol fee parameters and distribution.

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