Protocol Treasury

LevelQ treasury is a central part of the success of the protocol. All the incentive fee and streaming fee levied on each vault goes into the treasury. The treasury has multiple functions and is composed of different separate multisig/MPC which ensure that each use case allocation does not mix with one another.

1. POL (Protocol Owned Liquidity) + Reward distribution + Buyback & burn: LevelQ needs POL to make sure their is sufficient DEX liquidity and ensure its ability to purchase LVLQ from the market to distribute to gauge stakers + veLVLQ holders when token reward allocation will be depleted. Furthermore those funds will be used to buyback & burn the token, decided by the LevelQ DAO once voting is enabled.

2. OPex fund: Portion of the treasury is allocated to OPex needs that the LevelQ team might have in order to maintain the offchain computing up and running while taking care of the legal, regulation aspect of the business via the LevelQ Foundation.

3. Insurance/community fund: The insurance/community fund are assets dedicated to community growth incentives (grants) while also acting as a backstop like insurance which cover users in case of irrecoverable loss of funds due to unforeseen hack. The Insurance/community funds are always earning low risk yield in dedicated vault instances managed by LevelQ protocol and steered by the LevelQ DAO.