Tokenomics
Last updated
Last updated
LVX is the native token that enables shared community ownership and protocol usage incentives. It will be minted by trading, lending and referring new members.
Locking the LP token of the LVX trading pair of DEX into a time-weighted escrow allows the Levex community to truly own and govern the protocol, share protocol revenue, boost earnings by usage, and build self-sustaining DEX liquidity.
The dual token system is designed to promote liquidity, protocol usage, governance, and the self-sustainability of Levex.
A total of 1,000,000,000 LVX is as follows:
30.00% or 300,000,000 to the DAO treasury for community incentives, trading, lending, xLVX holders rewards, campaigns, and marketing events;
20% or 200,000,000 - First liquidity for LVX/USDC pair on Uniswap v2
14.60% or 96,000,000 to an ecosystem development treasury;
18.40% or 184,000,000 to past investors of the Levex Foundation;
17.00% or 170,000,000 to founders, employees, and advisors.
LVX can be earned by using the protocol:
Trading and Lending
Referral
Staking LP tokens to xLVX
All rewards calculations and distributions operate on a 21-day cycle referred to as an epoch.
During each epoch, all LVX earned from protocol usage will be claimable and transferable 7 days after the end of the epoch.
xLVX represents the governance token for Levex. Users receive xLVX as a receipt for providing LVX-USDC liquidity on a designated partner DEX and subsequently staking their LP tokens on Levex into a time-escrowed contract. Users may elect to lock their LP tokens for a minimum period of two weeks up to four years. Users who lock for the maximum duration (4 years) will receive 436% xLVX compared to those who lock for the minimal duration (2 weeks), similar to the Curve vote-escrowed model.
xLVX, therefore, encourages active liquidity provisioning for LVX and directly aligns token holders with the protocol’s interest over a longer time horizon.
xLVX holders will be eligible to participate in regular epoch voting rounds to determine lending and trading rewards for individual token pairs that meet certain eligibility criteria. Up to 30% of the total LVX supply, or 300 million tokens, has been designated to the Levex DAO fund which will continuously provide liquidity incentives.
As per the contractual off-chain agreement with all our previous investors, their allocation will require 90 days of lockup before being linearly vested by smart contracts over 1 year.
Founders, employees, and advisors of Levex Foundation will be issued LVX. All LVX distributions will be lockup before linearly vested by the smart contract.
Unvested tokens will not be able to participate in the staking rewards or governance process.