top of page
  • Writer's pictureConnie Chan

The Omnichain Liquidity Marketplace is now available on Arbitrum.

The Omnichain Liquidity Marketplace is now available on Arbitrum.
The Omnichain Liquidity Marketplace is now available on Arbitrum.

LEVEL has created a protocol to replace centralized counterparty risk and after six months of testing, it will be expanding to Arbitrum. The LEVEL DAO has made this decision.

LEVEL’s Success Story

LEVEL has grown phenomenally, with $320 million in volume traded and over $400k in fees earned in just the first month. They gained over 1000 community members. In 55 days, the ecosystem hit $1 billion in trading volume, earning $8.3 million in fees. They continued to grow, with over $20 billion traded in the first half of 2023.

LEVEL’s Success Story
LEVEL’s Success Story

Impressively, the most significant daily trading volume was $339 million on April 14, 2023, accounting for around a third of the total volume across Perp DEXs (Delphi Digital).

A Quick Look On-Chain

Total Volume: $17.4 billion, of which leverage trading volume accounts for $14.5 billion

A Quick Look On-Chain
A Quick Look On-Chain

Total Collected Fees: >$22 million

Total Collected Fees: >$22 million
Total Collected Fees: >$22 million

Interestingly, these collected fees are distributed to:

  • LLPs (supply-side revenue) = 45%

  • LVL Stakers (protocol revenue) = 10%

  • LGO Stakers (protocol revenue) = 10%

  • DAO Treasury (protocol revenue - redeemable against LGO) = 30%

  • Reserved for Protocol Development (5%)

Assets Under Management (AUM): $30 Million

Assets Under Management (AUM): $30 Million
Assets Under Management (AUM): $30 Million

During this time, LEVEL has established itself as the leading perpetual decentralized exchange (DEX) on BNB Chain, rivaling even the likes of GMX – a significant achievement considering the difference in total value locked (TVL) and market cap.

Ranking by fees and revenue
Ranking by fees and revenue

Setting itself apart from competitors, LEVEL wrote its own codebase from scratch and pioneered the tranche system in DeFi. By leveraging its innovative dual tokenomics model (LVL and LGO), which perfectly fits a perpetual DEX platform, LEVEL has created a strong protocol growth flywheel, reflected in the simultaneous growth of platform volume and Treasury assets. This has resulted in achieving close to $10M in treasury liquid assets.

Treasury assets
Treasury assets

LEVEL is advancing DeFi on-chain governance with over 19 DAO Proposals submitted, leading to truly decentralized governance and fast-paced iteration in product and incentive models.

The Omnichain Liquidity Marketplace is now available on Arbitrum. Why Arbitrum?

Even at a glance, Arbitrum looked like the most immediate choice for LEVEL, and this sentiment resonated with the majority of their community. The Omnichain Liquidity Marketplace is now available on Arbitrum.

All new possible chains were evaluated according to their:

  • Liquidity

  • User profile

  • Daily active users

  • Daily number of TXs

Arbitrum is the fourth largest chain by total value locked (TVL) due to its deep liquidity and strong DeFi user base. Despite concerns that activity would decrease after the ARB Airdrop, the network has seen sustained growth in unique addresses and daily transactions are steadily increasing. The DAO voted for Arbitrum, securing 53% of the total votes across four options. Arbitrum is a hub for DeFi and offers endless possibilities for new products and partnerships with other protocols.

  • Yield Aggregators

  • Money Markets

  • Other Derivatives (e.g., hedging, structured products)

The Layer 2 protocol is well-suited for LEVEL as it caters to perp DEX traders who can take advantage of the incentivized program designed to drive protocol and treasury growth. Although the main priority is to expand to Arbitrum, LEVEL aims to become an important component of the broader omnichain infrastructure.

Practical Developments

LEVEL is building cross-chain infrastructure to establish itself as an omnichain protocol. To achieve this, the LVL and LGO tokens will be migrated to the Omnichain Fungible Token standard. The aim is to allow cross-chain aggregation of fees for stakeholders to earn yield across the ecosystem. The DAO treasury will also be united across all chains. LEVEL is using LayerZero's technology to bridge 5M LVL to Arbitrum to increase liquidity and trader activity through auctions and incentive programs.

They Have Also Begun Migrating:

  • LVL/USDT Liquidity — to make LVL tokens more accessible to users on Arbitrum, LEVEL migrating the entire LVL/USDT pool (currently ~ $713,214) to Trader Joe Arbitrum ensures that new users trading for the first time will have the liquidity to access LVL tokens.

  • LEVEL Trading Pool Liquidity — enabling access to all trading features, migrating 3,555,192 Senior LLP (currently ~ $4,061,500) from the BNB Chain to seed trading liquidity on Arbitrum (50% of the protocol-owned Senior LLP supply).

Future Plans

Level Protocol's key priority is to achieve exceptional growth by having the DAO guide its journey. They are committed to providing customers with a premium user experience and are actively seeking partnerships with Tier-1 projects to expand their reach in the DeFi space. The success of Level Protocol is due to the support of its community of users. They will be releasing a first-of-its-kind utility-based NFT exclusively for their community in 60 days, as they expand to a cross-chain liquidity marketplace. The allocation of these unique items will be based on interactions with the protocol on Arbitrum and BNB Chain.

Three categories will correspond to the three main facets of LEVEL:

  • Stock Broker's Vest, Earned through proving yourself as a trader. The life blood of any financial hub, a Trader needs to look the part at his desk.

  • Auctioneer's Hammer –A key group of mechanisms at LEVEL, Auctions serve to widen the reach of the ecosystem as a whole. Embody the power of the Auctioneer with their Hammer.

  • Tattered Farmer's Hat – LEVEL wouldn’t we be anywhere without liquidity. LPs take on risk enabling the entire marketplace to function. It ain’t much, but it’s honest work.

LEVEL aims to be a top omnichain trading platform and has taken its first step towards achieving this by expanding to Arbitrum. They also plan to explore other DeFi sectors and become a multi-chain liquidity aggregator. Their ultimate goal is to unify fragmented liquidity across different ecosystems into a single pool, enabling seamless trading, swapping, and borrowing for users. This journey will transform the way people engage with DeFi and revolutionize their trading experience.

Disclaimer: This is a paid release that was not written by Crypto Online News. The statements, views and opinions expressed in this column are solely those of the content provider and do not necessarily represent those of Crypto Online News. Crypto Online News does not guarantee the accuracy or timeliness of information available in such content. Do your research and invest at your own risk.

Recent Posts

See All


bottom of page