Levare Protocol Whitepaper

Decentralized Multi-Asset Leveraged Perpetual Trading Platform

Table of Contents

1. Project Overview

The name "Levare" derives from the Latin word meaning "to lift" or "to elevate." This unique and novel name symbolizes the protocol's vision of elevating user returns through leveraged trading while maintaining brand registrability. Levare is a fully decentralized, multi-blockchain deployable multi-asset leveraged perpetual contract platform. Users can use a single stablecoin as collateral to trade various market contracts including cryptocurrencies, major forex pairs, precious metals, commodities, and stock indices. The protocol employs a unified cross-asset leverage engine that breaks through traditional single-market limitations, allowing any asset with reliable price sources to be listed for trading.

As a decentralized perpetual contract exchange, Levare emphasizes capital efficiency and diversity. The platform uses a cross-chain shared liquidity vault as the counterparty for all trades, significantly improving capital utilization. Traders can open high-leverage positions with minimal margin: crypto asset markets support up to 500x leverage, while low-volatility forex markets can reach up to 1000x. This design satisfies derivative traders' pursuit of diversified asset exposure and high capital efficiency. Meanwhile, Levare achieves true decentralization without centralized intermediaries, with all trading, clearing, and fund management automatically executed by smart contracts and governed by community autonomy.

Core Features

Multi-Asset Support

A single platform covering cryptocurrencies and Real World Assets (RWA), achieving integration between digital assets and traditional markets, providing cross-currency and cross-market perpetual contract trading opportunities.

Cross-Chain Deployment

Uses inter-chain communication technology to enable one protocol running across multiple chains. Whether users are on Ethereum mainnet, Layer2 networks, or other public chains, they can seamlessly access unified markets and liquidity.

Unified Vault & High Leverage

Through a globally shared stablecoin vault that aggregates liquidity as the counterparty for all trades, significantly improving capital efficiency for leveraged trading. Users enjoy deep liquidity and leverage up to hundreds of times.

Fully Decentralized Governance

The protocol is managed by a Decentralized Autonomous Organization (DAO), where the community votes through governance tokens to decide on parameter adjustments, asset listings, cross-chain expansion, and other proposals.

Security & Transparency

Integrates decentralized oracles to provide real-time reliable price feeds, smart contracts audited and formally verified, with risk mitigation mechanisms (such as insurance vaults and liquidation bots) to ensure robust system operation.

Innovative Incentive Mechanism

Designs trading points (XP) to reward active traders, and introduces loss rebates, positive slippage, and other incentive measures to balance trader and LP interests, promoting healthy ecosystem cycles.

2. Governance Mechanism & Treasury Autonomy

2.1 DAO Governance Architecture

Levare is fully community-driven, with its governance structure adopting a Decentralized Autonomous Organization (DAO) model. Users holding the platform's native governance tokens can participate in governance and collectively decide on the project's development. The governance process includes three stages: proposal, voting, and execution:

Proposal

Any qualified token holder can submit proposals on governance forums or on-chain (such as adding new trading pairs, adjusting fee parameters, or upgrading contracts), along with motivation and detailed plans. After community members discuss and improve proposals publicly, they enter the formal voting stage.

Voting

Through governance dApps or voting portals, token holders vote on proposals based on their token holdings (using stake-weighted voting mechanisms). To ensure fairness, voting uses fixed-duration windows and can set voting thresholds.

Execution

After proposals pass voting and meet predetermined approval thresholds, they are automatically scheduled for execution by the protocol's governance contracts. Usually through timelock mechanisms to ensure a safety buffer period before proposals take effect.

The DAO governance architecture ensures that major decisions are made collectively by the community rather than controlled by a few centralized individuals. Levare also establishes a community treasury managed by the DAO for funding project development, audits, security reserves, etc. Any fund usage also requires DAO proposal approval, fully embodying open and transparent governance principles.

2.2 Treasury Autonomy Mechanism

Levare's core liquidity vault operates through autonomous mechanisms. This vault (a stablecoin fund pool provided by all LPs) is completely controlled by smart contracts, achieving automated management without human intervention:

Automated Management Features

  • Automatic Risk Management: The vault contract has built-in risk parameter monitoring. When a market's net position becomes overly biased to one side, the protocol automatically adjusts new position opening limits or increases margin requirements for that market.
  • Algorithmic Profit & Loss Handling: All trading profits and losses are automatically settled in real-time by the vault. Losses are borne by corresponding LP funds, while profits are paid to traders by the vault (using LP funds).
  • Trustless Fund Management: LP fund deposits, withdrawals, and yield settlements are all executed by contracts according to predetermined rules. No single administrator can move vault funds.
  • Autonomous Upgrades: Adjustments to vault mechanisms are completed through governance proposals, achieving "autonomous evolution".

Through the above autonomous vault design, Levare platform's core fund pool can self-regulate and operate automatically under changing market conditions, reducing dependence on human intervention. This ensures the protocol's anti-manipulation and reliability, working together with DAO governance to achieve truly decentralized operation.

3. Cross-Chain Architecture & Oracle Solution

3.1 Cross-Chain Deployment Architecture

Levare adopts a modular cross-chain deployment architecture to enable multiple chains to share the same set of markets and fund pools. The overall design follows the principle of "central settlement + multi-chain frontend":

Central Settlement Layer

The protocol deploys core contracts on the main network (optionally on Ethereum or high-performance Layer2), centrally hosting liquidity vaults and trading settlement logic. This layer aggregates funds from all chains and serves as a unified clearing and risk management center.

Multi-Chain Access Layer

Deploys lightweight access contracts on other supported blockchains, primarily responsible for user interaction and local asset custody. The access layer communicates with the central settlement layer through cross-chain message passing.

Cross-Chain Communication

Uses decentralized cross-chain communication protocols (such as LayerZero, IBC, or Chainlink CCIP) to transmit instructions and states. Uses validator network multi-signatures or light client proofs to prevent tampering or loss.

Unified Liquidity Vault

Regardless of which chain users trade on, their margin ultimately aggregates into the unified vault of the central settlement layer. All funds are managed centrally, achieving cross-chain liquidity aggregation and avoiding fund fragmentation.

This cross-chain architecture allows Levare to achieve "deploy once, available everywhere." Users don't need to worry about which chain their trades are settled on, as the frontend interface automatically selects the optimal path to complete trades. This not only improves scalability but also allows the protocol to quickly expand users on emerging chains without rebuilding liquidity foundations.

3.2 Secure Oracle Price Feed Solution

Multi-asset perpetual contracts depend on high-quality price feeds. To ensure fair trading and secure liquidation across all markets, Levare builds a multi-layered decentralized oracle system:

Oracle System Architecture

  • Mainstream Asset Prices: For mainstream crypto assets like BTC, ETH, as well as gold and major forex rates, integrates Chainlink decentralized oracle networks to obtain real-time price data.
  • Long-tail & Special Markets: For assets lacking mature oracle support, the protocol uses oracle aggregation modules: introducing multiple independent data providers to sign prices and perform multi-sig verification on-chain.
  • Cross-Chain Price Consistency: Levare ensures unified price standards across all deployed chains. Quotes from the central settlement layer are broadcast to each access chain via cross-chain communication.
  • Security Mechanisms: The oracle system sets heartbeat frequencies and fault tolerance mechanisms for price feedback. When encountering abnormal on-chain price feeds or delays, the protocol activates backup plans.

Through the above architecture, Levare ensures secure and reliable price sources for all markets while achieving cross-chain deployment. This provides a solid foundation for high-leverage trading and prevents oracle attacks and price manipulation from impacting the protocol.

4. Tokenomics

Levare Protocol issues a native governance and utility token, abbreviated as LVR (also referred to as "Levare Token"). The total supply is fixed at 10 trillion tokens, minted once in the genesis block with no additional issuance.

4.1 Token Distribution Plan

Community Incentives (50%)

Used to reward early protocol users and contributors, including trading mining, liquidity mining, airdrops, and community activity rewards. This portion of tokens will be gradually released according to predetermined plans to encourage long-term participation.

Team & Advisors (15%)

Allocated to core development team and advisors. This portion will have strict lockup and linear release periods (e.g., 1-year lockup followed by monthly linear release over 2 years).

Early Investors (20%)

Reserved for strategic investors and partners in private fundraising for project startup capital. Uses staged lockup release strategies (e.g., 6-month cliff period followed by 18-24 month linear unlock).

Ecosystem Fund (10%)

DAO-managed reserves for future ecosystem building, market expansion, developer incentives, and cross-chain deployment liquidity support. Fund usage requires governance approval.

Security Reserve (5%)

Security module reserves and emergency funds. These tokens are held by the protocol treasury and can be sold or injected into the vault to address extreme risk events when necessary.

4.2 Release & Unlock Schedule

Levare tokens will not circulate all at once but will be gradually released according to a long-term plan:

Release Timeline

  • Initial Circulation: At mainnet launch, only airdrop rewards and minimal private sale tokens unlock, with initial circulation expected to be less than 5% of total supply.
  • Community Reward Release: The community incentive portion (50%) will be released monthly through "trading points exchange" and "liquidity mining" activities, expected to complete distribution over 4-5 years.
  • Team/Investor Unlock: Team and investor allocations use long-term lockup mechanisms with no unlocks for the first 6-12 months, then monthly proportional releases over 2-3 years total.
  • Inflation & Burns: LVR tokens have no initial inflation issuance. The protocol sets aside part of trading fee income for market buybacks and burns or injection into security reserves.

4.3 Token Utility & Value Support

Levare tokens play a key role in the ecosystem with multiple functions:

Governance Rights

LVR serves as a governance token, granting holders the right to participate in DAO governance. Holders can vote on protocol upgrades, parameter adjustments, fund usage, and other proposals.

Staking & Security

Users can stake LVR in the protocol's security module to provide credit backing for the platform vault. Stakers receive multiple rewards including protocol fee dividends and additional LVR inflation rewards.

Trading Fee Discounts

When users hold or stake certain amounts of LVR, they can enjoy tiered perpetual contract trading fee reductions. For example, reaching tier-1 threshold provides 10% fee discount, with higher holdings offering up to 30-50% fee discounts.

Liquidity Mining Incentives

Liquidity providers (LPs) injecting funds into the vault receive LVR token rewards. LPs can further stake earned LVR or use for governance participation, creating positive cycles.

Ecosystem Consumption & Value Buybacks

The protocol uses part of its income for secondary market LVR buybacks and community treasury injection or burns. May also require certain advanced features to consume LVR tokens.

In summary, Levare tokens serve as both carriers of governance power and important tools for incentivizing ecosystem participants. The economic model design aims to promote protocol development while creating actual returns and value guarantees for token holders.

5. Protocol Incentive Mechanism (Trading Points)

To encourage users to actively participate in trading and promote protocol growth, Levare designs a unique trading points system - non-transferable Experience Points (XP). XP serves as an internal points system without cash value or on-chain circulation but plays an important role in ecosystem incentives.

XP Points System Features

Earning Methods

Users accumulate XP through perpetual contract trading activities on the platform. Completing certain trading volumes (in USD equivalent) earns corresponding XP points, with trading frequency and position holding time potentially factored into calculations.

Seasonal Rankings

Levare integrates XP mechanisms into seasonal operations. Periodically (e.g., quarterly or monthly), the platform ranks traders based on accumulated XP during the period. Top-ranking traders receive additional rewards.

Airdrop Eligibility

XP serves as an important reference indicator for future airdrop rewards. The protocol will target active users holding certain XP amounts or ranking highly for directed airdrops. Higher XP means better airdrop eligibility and amounts.

Level System

The platform establishes level systems based on users' accumulated XP, ranging from beginner to advanced, expert, and master levels. High-level users can participate in new feature testing and receive VIP invitations to official events.

Non-transferable & Anti-cheating

XP is completely owned by individual user accounts and cannot be transferred or traded. The protocol uses multiple anti-cheating measures including monitoring abnormal trading behavior and limiting wash trading.

Through the trading points system, Levare tightly binds trading behavior with long-term rewards. Without directly increasing inflation, XP incentivizes users to trade continuously and compete for rankings while providing additional earning opportunities for loyal users. This mechanism helps build a loyal trader community and creates healthy competitive participation cycles.

6. Liquidity Supply & Risk Stratification

Levare introduces innovative three-tier liquidity provision (LP) mechanisms and locking incentive models, allowing funds with different risk preferences to find their place. LPs can choose their risk/reward levels and fund locking periods to participate in vault market making and receive corresponding returns.

6.1 Three-Tier Risk Tranches

The liquidity vault is divided into three fund pool tranches based on risk-bearing capacity, corresponding to different priority levels:

Senior Tranche LPs

These LPs enjoy the highest priority with minimal risk. In vault yield distribution, senior funds receive profit guarantees first; in losses, they're only affected after junior and mezzanine funds are completely depleted.

Mezzanine Tranche LPs

Mezzanine tranches have moderate risk and returns. When the vault profits from trading fees, mezzanine LPs receive higher yield shares than senior LPs; but if losses occur, mezzanine LPs bear losses after junior funds are depleted.

Junior Tranche LPs

Junior tranches bear the highest risk but enjoy the highest potential returns. Most trading fee income from vault operations is allocated to junior LPs; but in case of massive trading losses, junior funds are first used to fill gaps.

6.2 Liquidity Locking Incentives

Levare also introduces time-locking incentive mechanisms: LPs can choose locking periods when depositing funds, with longer locks receiving higher yield share ratios.

Locking Period Options

  • Flexible Pool (No Lock): LPs can deposit and withdraw anytime but as "demand" liquidity funds, only receive base yield rates.
  • Term Pool (With Lock): LPs commit to not withdrawing funds during lock periods, receiving additional yield rewards from the protocol. 30-day locks may receive +20% yield bonuses compared to no-lock options.
  • Long-term Locks: 90-day locks may receive +50% bonuses, 180-day locks may receive +100% bonuses (specific ratios determined by governance).

6.3 Yield Distribution & Risk Model

Combining the above stratification and locking designs, Levare vault's LP yield and risk distribution follows this model:

Yield Distribution

The protocol splits net trading fee income from each settlement period according to tranche and locking bonus ratios. First, senior LPs receive their fixed allocations, then remaining yields are distributed to mezzanine and junior LPs by weighted factors.

Loss Bearing

When vault trading losses reduce overall funds, losses are deducted from tranches in reverse order. Junior LP shares bear losses first until depleted; if losses continue expanding, mezzanine LP shares are affected next.

Dynamic Adjustments

The DAO can adjust yield weights for each tranche or locking bonus multipliers based on market conditions and vault operational data. All parameter adjustments are executed through governance votes, ensuring flexible evolution and transparency.

Through combining risk stratification and locking incentives, Levare achieves a three-tier risk-return sharing model: LPs with different preferences get what they need while the overall vault gains more robust risk resistance and deeper liquidity reserves.

7. System Modules Details

Levare protocol consists of multiple collaborative functional modules that work together to achieve perpetual contract trading platform functionality.

7.1 Trading Engine

The trading engine is the core module for user-protocol interaction, handling user orders, cancellations, and position management operations.

Order Type Support

The trading engine supports various order types including market and limit orders. Using vault automated market-making, limit orders are set as trigger conditional orders - when oracle prices reach user-set levels, contracts immediately execute orders at those prices.

Real-time Leverage & Margin Calculation

When placing orders, the trading engine calculates required initial margin and estimated liquidation prices based on user-selected leverage multiples and account balances in real-time. The system freezes corresponding margins and dynamically updates available user balances.

High-Performance Matching

Levare runs on high-performance chains with optimized matching processes. Market orders execute immediately at current mark prices against the vault without waiting for counterparties; large order volumes can achieve second-level on-chain confirmations.

Order Book View Simulation

Despite lacking traditional order books, the trading engine provides simulated market depth information. Based on current vault liquidity and slippage models, frontends display estimated execution prices for different order sizes to preview slippage impacts.

7.2 Vault System

The vault system is the platform's fund pool module, aggregating LP-provided funds and serving as counterparty for all trades.

Vault System Functions

  • Fund Management: Vault contracts receive LP-deposited stablecoins and convert them to internal accounting shares. Real-time tracking of total pool assets, LP shares by tranche, and unrealized P&L.
  • Contract Counterparty: When traders open positions, the vault acts as counterparty "holding" equivalent opposite positions. As market prices change, vault positions generate floating P&L.
  • P&L Settlement: When trades close, vault modules calculate trade P&L. Losses are credited to vault surplus while profits are transferred from vault to users.
  • Security Controls: To ensure fund security, vault systems have various limits: maximum net position sizes per asset, 24-hour maximum loss thresholds, etc.

7.3 Matching & Liquidation Module

The matching and liquidation module ensures correct settlement of trades and account states:

Automatic Matching

Levare requires no traditional order book matching - all orders are automatically executed by contracts. Market orders execute directly at oracle prices, while limit orders trigger immediately when prices are reached.

Forced Liquidation

When user position losses cause margin ratios to fall below maintenance requirements, liquidation modules trigger forced closures. The system closes positions at current market prices, prioritizing protocol built-in liquidation bots.

Funding Rates

To maintain long-term vault long-short balance, liquidation modules introduce perpetual contract-like funding rate mechanisms. When markets have too many longs, hourly rate fees are charged to long position users and subsidized to shorts.

7.4 Price Oracle Module

Oracle modules provide real-time price data to trading engines and liquidation modules, ensuring trades and liquidations are based on fair market prices.

Oracle Module Features

  • Multi-source Decentralization: Uses Chainlink and other decentralized oracles to aggregate multiple exchange quotes, taking median values as mark prices to prevent single-point data anomalies.
  • High-frequency Updates: Oracle prices update frequently on-chain, refreshing quotes every block during high volatility to ensure contracts get latest market data for margin calculations and liquidation decisions.
  • Anomaly Protection: Modules have built-in price anomaly detection logic. If asset price changes exceed reasonable ranges or oracle services are interrupted, protocols trigger circuit breakers.

7.5 Risk Management Module

Risk modules monitor protocol operational status in real-time and execute automated risk control measures:

Limits & Leverage

Sets single-account position limits and maximum leverage for each trading market. For example, small-cap perpetual single-account position caps at $500K USDC with maximum 50x leverage.

Risk Monitoring

Risk modules track vault long-short total exposure ratios to vault assets, asset price volatilities, and other indicators. Upon detecting abnormal indicators, modules automatically increase margin requirements or reduce available leverage for corresponding markets.

Auto-Deleveraging

In extreme market conditions, if some profitable positions become too large and threaten vault safety, risk modules execute auto-deleveraging according to preset rules - partially closing profitable positions to reduce overall risk.

Balance Incentives

Risk modules implement loss rebate and positive slippage mechanisms. When trades reduce vault risk, systems automatically provide positive slippage benefits or return certain loss percentages when those trades incur losses.

7.6 Points System Module

XP points modules track user trading activities and provide rewards:

Points System Implementation

  • Points Accumulation: When users complete trades, contracts add certain XP amounts to their accounts based on trading volumes. If forced liquidations occur, corresponding points are deducted to prevent users from intentionally losing to farm points.
  • Ranking Interfaces: Points modules periodically aggregate user points and update leaderboard data for frontend queries. Since XP records only involve simple numerical additions/subtractions, gas consumption impact is minimal.

7.7 Trading Bots & Developer SDK

Levare emphasizes openness and extensibility, providing friendly tools for advanced users and developers:

Open APIs

Provides comprehensive REST/WebSocket API interfaces allowing third-party applications to access market data, place trades, query positions, etc. Access requires API keys and signature verification for account security.

Developer SDKs

Official multi-language SDK libraries (Python, TypeScript, Rust) encapsulate API calls to simplify development processes. Developers can easily integrate Levare into trading terminals, bots, or other DeFi applications.

Automated Trading Bots

Levare provides open-source trading bot examples supporting grid trading, trend following, and other strategies. Users can deploy and adjust according to their needs for automated market making, arbitrage, or risk management.

Smart Assistants

Future plans include AI-driven trading assistants to help analyze markets, recommend strategies, and assist with order placement. These assistants will be optional tools to improve novice trading experiences and expert decision efficiency.

Through the above modules, Levare creates a fully-featured and open perpetual contract trading ecosystem. Whether ordinary users, professional traders, or developers, all can find corresponding tools and support.

8. Frontend Application & Documentation Architecture

To improve user experience and lower barriers to entry, Levare carefully designs official website and application interfaces while providing comprehensive documentation resources.

Official Website Structure

Levare's official homepage presents key information in a clean single-page format, including project manifesto, core highlights, product demonstrations, data statistics, and calls-to-action to help users quickly understand value propositions.

Web Application Module Navigation

Levare's web application interface uses modular navigation bars, dividing main functions into trading, liquidity, staking, governance, leaderboards, and documentation sections for easy user switching.

Documentation Center Architecture

Levare provides comprehensive online documentation using categorized tree structures including overview, user guides, developers, governance & security, and FAQ sections, supporting full-text search and multi-language switching.

9. Roadmap

Levare has a clear development and promotion roadmap with quarterly milestone planning for continuous iteration toward goals:

2025 Q4

Complete core functionality development and internal testing. Launch Testnet public beta, introduce early users for perpetual trading experiences, and conduct bug bounty programs. Invite security audit firms for comprehensive smart contract reviews.

2026 Q1

Official mainnet launch (Phase 1). Initially deploy on Ethereum L2, supporting approximately 20 trading pairs covering crypto assets and major forex markets. Open liquidity provision and three-tier risk vault mechanisms.

2026 Q2

Cross-chain expansion (Phase 2). Extend protocol deployment to more blockchains for multi-chain simultaneous operations. Launch cross-chain bridging modules, list index and commodity contract markets, conduct first seasonal trading leaderboard activities.

2026 Q3

Ecosystem improvement (Phase 3). Launch mobile-friendly versions and multi-language support, introduce AI smart trading assistant beta versions. Host global trading competitions and conduct second-round security audits.

2026 Q4

Full decentralization (Phase 4). Transfer protocol control to DAO, enable decentralized frontend hosting and on-chain governance guardianship. Perfect developer ecosystem, host hackathons. Target platform cumulative trading volume exceeding $10 billion.

Long-term Vision

The roadmap may be adjusted based on actual circumstances, with all changes announced in advance and discussed by the community. The entire plan reflects Levare's balanced emphasis on technical development, market expansion, and community building, ensuring the protocol achieves its vision step by step.

10. Team Introduction

Behind Levare is a team of experienced blockchain developers, financial engineers, and community operators who share the same vision and are committed to building the next generation of decentralized derivatives platforms.

Chief Technology Officer (CTO)

Veteran blockchain industry developer with over 10 years of software development experience, previously served as architect for Ethereum Layer2 projects with deep research in cross-chain communication and high-concurrency matching systems. Responsible for overall technical architecture and smart contract development at Levare.

Chief Risk Officer (CRO)

Background in traditional financial derivatives trading departments with over 8 years of futures and forex risk management experience, specializing in quantitative risk control model design. Responsible for vault risk control and liquidation rule formulation at Levare, ensuring robust system operation in high-leverage environments.

Product & Frontend Lead

Internet financial product manager background who previously led trading interface design for a top exchange. Familiar with user needs and interaction experiences. Responsible for web application product design and frontend development teams at Levare, creating intuitive and user-friendly interfaces.

Community & Marketing Lead

Crypto industry marketing expert who participated in community building and promotion for multiple DeFi projects. Specializes in social media operations and user growth strategies. Responsible for global community operations, brand promotion, and partnership development at Levare.

Team Philosophy

Team members are distributed across major global crypto hub cities, using remote collaboration for efficient development progress. Following decentralization principles, some members choose anonymity or pseudonyms, but this doesn't affect their professional contributions. The project also invites several advisors including smart contract security experts and former traditional exchange executives to provide guidance, ensuring Levare maintains best practices in technology and compliance.

The entire team upholds open and transparent principles, communicating with the public through regular community AMAs and development progress reports. As DAO governance gradually deepens, the team also plans to gradually transfer decision-making power to the community. Under the leadership of this excellent team combining blockchain technology with traditional financial experience, Levare is confident in achieving its vision and outstanding results in the decentralized derivatives field.

This whitepaper content may be updated based on project development. Please follow official channels for the latest version.