LEV7 documentation

Burn-In LP Lock

The entire LEV7 supply sits in a liquidity pool that nobody can withdraw from. Buying and validating fund a daily burn that burns unsold supply, until it reaches price discovery and becomes permanently locked.

All one billion tokens LEV7 tokens went into a Uniswap v4 position at launch, and that position has no withdraw function.

What pays for the burn

Buying. Every purchase through the official burn pool pays the fee in USDG. The protocol records the size of that fee in token terms and adds it to the budget. Buy a million LEV7 and you fund the burn of roughly 31,000 more.

Validating. If you hold LEV7 you didn't buy through the pool, you can pay the 3% after the fact, priced at an hour-long average. That burns exactly 3% of the amount you validate.

Validate only what you need

Validation is open to anyone, so it charges on whatever amount you hand it. Validating more than your unverified balance still pays the fee and still funds the burn. Check the figure first and validate through the web interface when possible.

Two meters, one shared budget:

Daily ceiling70,000,000 LEV7
ResetsEvery day, 00:00 UTC
Unspent creditExpires, never rolls over

How a burn works

Burning is permissionless. Anyone can call the burn function.

Burns start at the top rung and work down. A rung is only eligible if:

  • it sits entirely above the highest price LEV7 has ever traded at,
  • it has never been traded through, and
  • there is credit left today.

The withdrawal has to come out as LEV7 and nothing else. If removing it would touch the USDG side of the pool, the burn reverts. A burn can never remove the liquidity supporting the current price.

The high-water mark

This is the mechanism that ends the burn. The protocol remembers the highest price LEV7 has ever traded at. That mark only ever goes up.

Once the price touches a rung, that rung is permanently retired from burning.

So two fronts move toward each other:

  • The burn consumes LEV7 tokens from the top down.
  • The price retires the liquidity rings from the bottom up.

When they meet, burning stops forever and the LP lock solidifies and this completes the burn-in.

The burn cursor descending toward a rising price high-water markPrice runs up the vertical axis and time runs along the horizontal axis. A burn cursor starts high and steps downward, because burns always take the topmost unsold rung first. A high-water mark starts low and steps upward, never falling, retiring every rung the market has reached. The band between the two lines is the only supply still eligible to burn, and it narrows from both directions at once. Where the two lines meet the band is gone and burning stops permanently.pricetimeBurn cursor: works through supplyHigh-water mark: only risesThe shelf: still burnableThey meetBurning ends forever
Buying funds the burn and raises the mark that ends it. Every purchase pays for the next burn and shrinks what is left to burn.

For more info on where the 3% goes after it's collected, see The LEV7 Community Vault. For what your tokens earn, see Points and rewards. For the contract-level detail, see Smart Contracts.

Governance and staking

Staking LEV7 gives you voting power over what the LEV7 Community Vault trades each week, and earns you more ALLO points.

Agent API

Pay-per-request read API for agents, over x402. No account, no API key.

On this page

What pays for the burnHow a burn worksThe high-water mark