⚖️Tokenomics

To strengthen trader incentives, LeverUp introduces a dedicated Token Design mechanism. Each epoch, the protocol distributes token emissions directly to traders as rewards, while simultaneously using 100% of protocol fees for buybacks to preserve intrinsic token value.

Beyond short-term incentives, the design is structured to reward long-term holders and loyal users, aligning token value with sustained participation and ecosystem growth.

A Unified Token, Multiple Forms

At its core, the system revolves around a single token: $LV

This token can exist in multiple forms depending on its usage within the ecosystem, but fundamentally represents the same underlying value

LV

LeverUp Native Token

xLV

Staked version of LV with rebasing design

yLV

Liquid wrapped version of xLV

---

LV

LV is the native token for LeverUp traders

How to Earn LV

• Trading

  • Points are awarded based on trading volume, PnL, and related performance metrics.

• Referrals

Learn More

xLV

xLV Exit Mechanism

LeverUp introduces exit model designed to align incentives without relying on rigid lock-ups.

When a user exits their xLV position early, the portion of tokens forfeited is redistributed entirely to existing xLV stakers on a pro-rata basis.

This mechanism establishes a flywheel of loyalty and rewards, ensuring that:

• Incentives grow with protocol scale

• Stayers are rewarded without lock-up constraints

• No external wrappers are required

To further enhance flexibility, yLV is introduced as a liquid representation of xLV, offering users a wrapper-free way to maintain liquidity while participating.

Exit Rebase

• Any xLV tokens forfeited due to instant exits will be streamed to active stakers.

• Rewards are claimable in proportion to xLV staker positions after each epoch transition.

• This functions both as dilution protection and as an additional incentive layer for committed participants.

By discouraging exits and redistributing penalties(50%) to long-term holders, the system directly rewards loyalty and reinforces stability.

Unstaking staked xLV

Based on the design of socialized loss , xLV stakers play a role in ensuring the protocol remains functional and stable

xLV <-> yLV

Since xLV is a rebasing token, to further enhance flexibility, yLV is introduced as a liquid representation of xLV, offering users a wrapper-free way to maintain liquidity while participating

The yLV -> xLV convert rate will be based on the xLV amount in yLV vault, in general, protocol fees buy back xLV, which results in a higher convert rate, that is to say, holding yLV will automatically increase the position of xLV

Protocol Fee Incentive

Protocol fee incentives are weighted by the ratio between staked xLV and xLV in the yLV vault

• Staked xLV users receive USDC directly from protocol fees

• yLV users receive xLV — the protocol buys back $LV and stakes it into xLV as incentives

---

LV Tokenomics

	Amount	Unlock %	Note
Airdrop	100,000,000	100%
Trader Incentives Emission	600,000,000	0%	0 month Cliff Bonding Curve Vesting
Liquidity	50,000,000	100%
Team & Core Contributor	100,000,000	50%	6 months Cliff 12 months Vesting
Treasury	145,000,000	20%	6 months Cliff 12 months Vesting
Public Sale	5,000,000	100%

Initial Supply: 234,000,000 Total Supply: 1,000,000,000

Allocations in xLV: Airdrop/Team & Core Contributor Allocations in LV: Public Sale/Liquidity/Treasury/Trader Incentives Emission

Emission

Weekly emission of $LV will be distributed to traders based on $LV Point

Epoch	$LV Emission	Note
Epoch 0	3,744,000
Epoch 1	4,564,685	20% Increase
Epoch 2	5,117,559	10% Increase
Epoch 3	5,695,950	9% Increase
Epoch 4	4,894,743	16% decrease
Epoch 5	3,742,046	25% decrease
Epoch N	/	1% weekly decay

Total supply asymptotically approaches 1B tokens

Elastic Emissions

Emissions may be adjusted by up to ±35% per epoch based on protocol fee in order to maintain sustainable inflation

• Increase in Emissions: When protocol fees consistently exceed emissions over multiple epochs, or when revenue growth catalysts are expected.

• Decrease in Emissions: When protocol fees fall significantly below emissions over multiple epochs, or when revenue decline catalysts are anticipated.