LeverFi is powered by LEVER, a governance token with no intrinsic value. LEVER has a total token supply of 35 billion.
To participate in governance, users are required to lock up LEVER for a period of between 6 months to 48 months, in order to receive xLEVER tokens. Each xLEVER represents one vote in governance.
Governance oversee the following activities, including and not limited to:
- Addition or removal of collateral
- Addition or removal of tradable assets
- Addition or removal of lending pools
- Changes to risk management parameters and policies
- Distribution of protocol fees to xLEVER stakers
Users who undertake longer lockup periods will receive more xLEVER for the same number of LEVER tokens. This means that token holders with a smaller holdings and longer lockups can have comparable voting power with token holders who have larger holdings, but shorter lockups.
Protocol utility rewards accrue to staked users in the form of ETH and LEVER.