Value Investing in the LEVX Ecosystem
The LEVX ecosystem has grown dramatically over the past month as the community has multiplied by more than 10 times its previous numbers. Currently LEVX DAO is continuing its path of parabolic growth by creating multiple valuable projects and strategic partnerships. The following is a brief summary of the projects currently incubating within LEVX DAO, as well as a breakdown of how they will bring value to both $LEVX holders and the greater LEVX ecosystem. I chose not to include the most recently created projects, but if you’re interested in learning more about those check out the discords: LEVX DAO, Sharkpunks, SUSHIB.
$LEVX and $OH-GEEZ
$LEVX is the governance token for LEVX DAO as well as for other smaller projects within the ecosystem (except Maidverse, which is a partnership where each DAO holds some governance with other). On top of being a governance token $LEVX is also a method for profit sharing. This occurs from both the salary and investments of LEVX, the developer himself, as well as from the projects associated with LEVX DAO. For example, 3.33% of every Sharkpunk NFT trade will go to holders of $LEVX. If you’re looking for a more detailed explanation regarding all the utility, please refer to my previous article “Why $LEVX is Special”.
I would now like to dive deeper into how to value $LEVX and what role $OH-GEEZ has in that valuation.
First, it is important to discuss $OH-GEEZ and understand how it will be transferred into $LEVX. There are 333 OH-GEEZ tokens in existence. These were airdropped to the earliest discord members and they will be transferred at a ratio of 1:10 to $LEVX. The rest of the $LEVX supply is being airdropped to LEVX’s twitter followers and auctioned off on MISO according to the following diagram (Figure 1).
$OH-GEEZ has had a max price of $12,614 and a min price of $587 putting its FDV between $4,200,462 and $195,471. This is a very big price spectrum, but one must remember that this token hasn’t been particularly useful — whereas $LEVX will be very useful. By taking the average price of $OH-GEEZ to $6,600, we can in accordance translate that to an average price of around $660 for $LEVX. Since there will be 33,333 $LEVX tokens this price change would put its FDV at $22,000,000 which is very low considering the completely useless $ELON token has an FDV $1,521,000,000.
So, you might be wondering — if all these tokens are suddenly given away, will there be a massive price correction? That is a possibility, but it is also important to take the following pieces of information into consideration. First, the current liquidity providers for Sushiswap OH-GEEZ/WETH pool will have the option to either transfer their liquidity to LEVX/WETH with one click, or to lock their LP tokens for 6 months in order to acquire the unclaimed $LEVX from the twitter distribution. If the claim rate is the same as OH-GEEZ that would mean about 17% of the airdropped tokens would remain unclaimed (which adds up to be 4,590 $LEVX). Some LPs will likely opt for this course of action, while others will move their LPs over to the LEVX/WETH pool so that they may partake in accumulated profit-sharing rewards and farming with their LP tokens. Assuming a 50/50 split for LP token destination, between either transferring or locking up said tokens, that would provide at least 100k of initial liquidity in the LEVX/WETH pool based on the current OH-GEEZ/WETH pool liquidity as seen below in figure 2 (props to @dobbythereum for the great work with Dune Analytics page).
Secondly, it’s also important to note that many of the larger LP token holders, who want governance in the LEVX ecosystem, will migrate their LP tokens. They will likely do this because LEVX/WETH LPs have the largest weight in governance. Therefore, I expect the initial LEVX/WETH liquidity to actually be higher than 100k.
Finally, it is very important to consider who will be holding $LEVX tokens. The people involved in this community are not in it for the short term. They are involved because they believe in what the developer LEVX building and they want to be a part of creating innovative, decentralized financial and artistic products on Ethereum. They believe in LEVX because he has delivered projects like Shoyu in the past, and is the type of developer who calls out scammers on twitter and posts screenshots of their malicious code for the whole world to see. He is immensely talented and has built some amazing products, but more importantly he has created a very strong community which cannot be replicated.
Maidverse
Maidverse, originally dubbed MaidCoin, has been rebranded in order to bring more attention to their project as they work towards creating a true “metaverse” with maid avatars. All the past features of MaidCoin will continue to exist with this new rebrand. This includes the yield farming, staking, and high quality NFTs. However, there are new features being developed, such as a virtual café where you can hang out and chat with your friends while LARPing with your unique MAID NFTs.
While these upgrades are interesting, I think it’s also important to break down how undervalued this project actually is in technical terms. A total supply of 1,095,000 $MAID is scheduled to be minted in the 1st year. It would then reduce to 333,506 in the 2nd and 202,542 in the 3rd year and continue to follow this decrease for each consecutive year.
Assuming a max total supply of 2,000,000 $MAID, at current prices that would give $MAID a fully diluted value (FDV) of only $20,000,000 — which doesn’t even put it in the top 1000 coins! For this reason, I believe there is a huge opportunity to be had with Maidverse once it catches the markets attention. Another good metric to analyze the value of $MAID is to look at the total value locked (TVL) divided by the fully diluted value (FDV). The current FDV of $MAID is $2,256,700 and the TVL is $1,060,904 giving it a ratio of 0.47. For reference, this is higher then Uniswap (0.40) and lower than Sushi (2.31), meaning that for a young project Maidverse is undervalued, and perhaps Uniswap has a bit of a lofty valuation?
The growing value of $MAID will also benefit the holders of $LEVX because of the profit-sharing mechanisms of the $LEVX token and the fact the LEVX himself is assisting with the Maidverse project. The LEVX DAO, governed by holders of $LEVX and LEVX/WETH LPs, will also hold a portion of the Maidverse governance token $OMU which is simply staked $MAID earning yield similar to xSushi. Check out $MAID analytics HERE.
