preLVL Unvested Token
preLVL = unvested LVL token
With Level 2.0 a Bonding Mechanism (LIP #23) was implemented with an unvested token called preLVL. All LVL rewards are no longer distributed directly.
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
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.
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.
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.
Last modified 5d ago