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description: Our secret recipe.
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# DAO Buy Backs

## BUYBACKS

During over-collateralized phases, when there is an excess amount of collateral, our protocol will extract a portion of this amount to buy back LEVEL Liquidity.

If the protocol isn't utilizing the excess collateral, that would be a waste of resources. Idle collateral can bring a lot of value to LEVEL, SQUARE, DUES and the entire ecosystem.

### REPEG&#x20;

During underpeg phases we use DAO funds to fill in the needed collateral amount, to achieve overpeg (TWAP > 1.01).

Protocol acquired assets and SQUARE allocation will be reserved to protect the protocol. In this case, it may be used to help remove an underpeg (which could damage the entire ecosystem in long-term if left unresolved.)
