50X Altcoin Gem
A new 50X Altcoin Gem flying under the radar.
With all the meme coins going parabolic, the crypto world has become a bit of a circus. I am all for folks making money with any coins that suit their strategies, and make no judgement, but meme coins are not a fundamental long term investment with a couple specific exceptions. The meme coin frenzy, however, has created a bit of an opportunity for those of us with a mind for fundamental coins with great use cases, real yields, and innovative product … enter Level Finance.
Summary:
- Level Finance Tokens: $LVL(utility) & $LGO(governance)
- A derivatives platform based initially on BSC, plans for multi-chain deployment
- Huge fees to Market Cap ratio, coming 7th overall just above GMX yesterday. (see here)
- Completely unique code base, with added functionality vs platforms like GMX (i.e not a fork)
- Main VC is Arthur Hayes, who invested in February 2023 at approx $4.70/$LVL
- Fair launch for $LGO, and minimal VC and private allocations at prices fairly close to current market price for $LVL($2.5 — $4.70). There was a $100K seed sale at $0.10/LVL.
- Very innovative tokenomics and dual token model, with burn mechanism, yield, auctions, and deflationary fair launch $LGO.
Why Level Finance Stands out
Level Finance is a phenomenal innovative protocol that is on a DeFi derivatives trend that will only continue to grow. Given the failure of so many centralized platforms (CEXs), there is a strengthening need for decentralized protocols where users can perform margined perpetual trading without the added risk of a centralized platform, but also with a platform that is on a path to true decentralization.
- Level Finance currently allows for perpetuals on BTC, ETH and BNB up to 50X leverage.
- Liquidity is growing, and currently sits at $28M. Amazingly, daily use of that liquidity is almost 60%. Meaning $16M was traded yesterday from a pool of $28M.
- 30 days fees are on par with juggernauts like AAVE, CONVEX and OPTIMISM.
- Fees to date are over $20M, and accelerating.
- The LLP pools allow you to choose a risk level based on your risk appetite, with varying associated APYs.
- Multichain expansion plans, with Arbitrum the near term target.
- Hack 3 weeks ago was for 214K LVL tokens ($1M at the time) related to the referral contract, which were market dumped and smashed the price to from over $10 to $3. Fix was implemented in 12hours. This has created a unique buying opportunity.
- Revenue share is distributed between liquidity providers (45%), LVL token holders (10%) and LGO token holders (10%).
- LVL incentives are distributed to LVL and liquidity providers based on their risk levels in addition to the revenue share.
- LGO tokens can only be bought via special auctions with LVL tokens, which are burnt. The only other way to earn LGO is via staking of your LVL tokens in the DAO contract.
- LGO is effectively deflationary and represents a portion of the DAO treasury and rewards and other governance.
- Hack response was incredible, putting solid solutions to a DAO vote, all of which were accretive to LVL and LGO holders, and for which the TEAM took full financial responsibility.
Investment Strategy:
The tokenomics, governance and earn options for Level Finance require a solid deep dive and understanding to develop your own investment strategy (docs here). After significant due diligence, my plan is to purchase LVL and Mezzanine LLP shares in an effort to acquire as much LGO as possible.
- Buy LLP that fits your risk profile. Current APY’s range from 39% to 161%, paid in a combination of native tokens (ETH, BTC and BNB) and LVL tokens.
- BUY LVL tokens and stake in DAO LGO contract, current APY is approx 35% paid in LGO tokens.
- Take rewards from step 1 LLP tokens and buy more LVL, stake all LVL into the DAO LGO contract.
- GOAL: Accumulate maximum amount of LGO tokens, which are deflationary, fair launched, and look to have a seriously attractive value proposition. If any of you were in the TOMB/TSHARE craze back in 2021, LGO is reminiscent of TSHARE but with the added value from real and significant yield.
Conclusion
Level Finance is a small cap, and therefore higher risk investment. The beauty of Level Finance is it has gained very quick and significant adoption, weathered a storm that might have squashed other protocols, was invested in by the Grandfather of Research, none other than Arthur Hayes (Arthur Hayes) himself near current prices, and which is a custom and unique codebase that was built by a competent and obviously talented team.
The opportunity to get into LVL and LGO at these prices IMO is a combination of unlucky events for Level Finance, which have kept it under the radar and under-appreciated, and the now cooling meme coin craze which sucked out liquidity from genuinely valuable projects.
Good luck out there and see you on the next one!
Sovereign Crypto
Disclosure:
- Level Finance Referral Code for discounts and bonuses
- I own and am accumulating LLPs, LVL and LGO tokens.
- I have no connection with the protocol.
- Not financial advice, do your own due diligence!
