# preLVL Unvested Token

## LVL Bonding Mechanism - preLVL

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With Level 2.0 a Bonding Mechanism [(LIP #23)](https://dao.level.finance/proposals/0x1ee5e7c139d956e9f4a3a2945c6271eab9f3b700829b714eec4a8fcf1e0fe0b1) was implemented with an unvested token called preLVL. **All** LVL rewards are no longer distributed directly. 
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As part of the the 2023 roadmap and[ LIP #23](https://dao.level.finance/proposals/0x1ee5e7c139d956e9f4a3a2945c6271eab9f3b700829b714eec4a8fcf1e0fe0b1), LEVEL introduced preLVL.

LEVEL will no longer distribute LVL incentives directly to traders or liquidity providers, as rewards will be in an unvested version called preLVL.

Users will have 2 choices to vest preLVL tokens: Normal or Accelerated vesting

## How to vest preLVL tokens

### **Normal vesting using LVL**:

Users may stake and lock LVL tokens in order to vest preLVL tokens. 

To vest 1 preLVL token into 1 LVL, users will be required to stake 10 LVL tokens for 1 year. Users can claim vested LVL, stop vesting and/or unstake at any time.

**Example:**\
If a user wants to vest 10 preLVL tokens, that user is required to stake 100 LVL tokens for 1 year.

### **Normal vesting using LVL/USDT LP**:

Users may also stake and lock LVL/USDT LP in order to vest preLVL tokens. This option has a 2.5 times higher rate than using a single LVL token for normal vesting.

**Example:** \
If a user wants to vest 10 preLVL tokens, that user is required to stake a LVL/USDT LP with 40 LVL tokens within the LP for 1 year.

### **Accelerated vesting**: 

Users may pay fees in USDT in order to vest and receive preLVL immediately. 

To vest and claim 1 preLVL token immediately, users will need to pay a 60% tax in USDT. 

Assuming that $LVL is $3, users would then need to pay 1.80 USDT to immediately realize the conversion. The taxed USDT will be distributed equally, with 50% to the DAO, and 50% to the LLP.

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[**preLVL Vesting Tutorial**](https://docs.level.finance/tutorials/prelvl-vesting-tutorials)
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