{"id":"level","title":"Level","content":"**Level** is a decentralized [stablecoin](https://iq.wiki/wiki/stablecoin) protocol that issues lvlUSD, a yield-generating asset backed by [USDC](https://iq.wiki/wiki/usdc) and [USDT](https://iq.wiki/wiki/tether). It deploys reserves into lending protocols to generate and distribute yield through [staking](https://iq.wiki/wiki/staking) and tokenized vaults. [[11]](#cite-id-EtLW3Ry9bH)\n\n# Overview\n\nLevel is a [stablecoin](https://iq.wiki/wiki/stablecoin) protocol that issues lvlUSD, a [stablecoin](https://iq.wiki/wiki/stablecoin) backed entirely by [USDC](https://iq.wiki/wiki/usdc) and [USDT](https://iq.wiki/wiki/tether). Users can [mint](https://iq.wiki/wiki/minting) lvlUSD using these assets, which are then deployed in blue-chip lending protocols to generate yield.\n\nYield is distributed through an [ERC-4626](https://iq.wiki/wiki/erc-4626) [staking](https://iq.wiki/wiki/staking) mechanism. When lvlUSD is staked, it becomes slvlUSD, a token that accrues yield as its value appreciates over time. Both lvlUSD and slvlUSD are transferable and compatible with [DeFi](https://iq.wiki/wiki/defi) protocols that have integrated them.\n\nLevel uses audited and open-source smart contracts to manage reserves and minimize risk by relying exclusively on well-established lending platforms. Yield generation is transparent and verifiable on-chain. Compared to traditional lending protocol receipt tokens, lvlUSD offers broader integration with protocols such as [Morpho](https://iq.wiki/wiki/morpho-labs), [Pendle](https://iq.wiki/wiki/pendle-finance), [Spectra](https://iq.wiki/wiki/apwine-finance), [Curve](https://iq.wiki/wiki/curve-finance), and [LayerZero](https://iq.wiki/wiki/layerzero), aiming to improve utility and capital efficiency.\n\n![](https://ipfs.everipedia.org/ipfs/QmQMsQg8gFxwASJvxBsqCBpbLkemRzrh2H1YeadcPD3E9p)\n\n# Products\n\n## lvlUSD\n\nlvlUSD is a [stablecoin](https://iq.wiki/wiki/stablecoin) fully backed by [USDC](https://iq.wiki/wiki/usdc) and [USDT](https://iq.wiki/wiki/tether), which are used in lending protocols to generate yield. It can be [minted](https://iq.wiki/wiki/minting) using only [USDC](https://iq.wiki/wiki/usdc) and [USDT](https://iq.wiki/wiki/tether), which comprise its reserves. Redemptions are currently permissioned, meaning they are subject to approval.\n\nThe reserves of [USDC](https://iq.wiki/wiki/usdc) and [USDT](https://iq.wiki/wiki/tether) are deployed in blue-chip lending protocols, such as [Aave](https://iq.wiki/wiki/aave), to generate yield. While all reserves are currently in [Aave](https://iq.wiki/wiki/aave), plans are in place to diversify into other lending protocols, including [Morpho](https://iq.wiki/wiki/morpho-labs). The receipt tokens from these protocols are wrapped to become yield-accruing assets, with a small portion restaked in [Symbiotic](https://iq.wiki/wiki/symbiotic). However, the restaking process is being phased out.\n\nThe lending yield generated is accumulated by Level and passed back to users. This yield is distributed to slvlUSD via the [staking](https://iq.wiki/wiki/staking) contract.\n\n## slvlUSD\n\nslvlUSD is the yield-accruing version of lvlUSD, created by [staking](https://iq.wiki/wiki/staking) lvlUSD in a designated vault. Users receive slvlUSD to represent their share of the vault, which increases in value as yield accumulates from the underlying lending activity.\n\nAll lvlUSD reserves generate lending yield, but only staked lvlUSD, converted into slvlUSD, receives the distributed yield. As a result, slvlUSD typically accrues yield at a higher rate than the base lending yield. The yield rate for slvlUSD depends on the proportion of lvlUSD staked; fewer stakers result in higher returns per user and vice versa.\n\nUnstaking involves [burning](https://iq.wiki/wiki/token-burn) slvlUSD in exchange for a proportional share of lvlUSD based on the total holdings in the contract. After initiating unstaking, users must wait seven days before withdrawing lvlUSD. This cooldown allows the protocol to retrieve collateral from lending platforms, which may have time-sensitive withdrawal constraints.\n\nThe cooldown mechanism also accounts for [liquidity](https://iq.wiki/wiki/pol-protocol-owned-liquidity) conditions in lending protocols. For instance, during periods of high utilization, borrowing rates increase to encourage loan repayments or [liquidations](https://iq.wiki/wiki/liquidation), which helps restore available liquidity. The waiting period ensures the system can manage these dynamics without disrupting withdrawals.\n\nslvlUSD follows the [ERC-4626](https://iq.wiki/wiki/erc-4626) token standard, which defines a structure for tokenized vaults that manage deposits, withdrawals, and yield. This standard improves compatibility across [DeFi](https://iq.wiki/wiki/defi) platforms, streamlines yield distribution, and enhances efficiency.\n\nUnder [ERC-4626](https://iq.wiki/wiki/erc-4626), users deposit lvlUSD and receive slvlUSD shares. When withdrawing, they redeem slvlUSD for lvlUSD plus any accumulated yield. The vault’s total assets grow as yield is generated and distributed, increasing the value of each share. The standard also reduces [gas](https://iq.wiki/wiki/gas) costs by avoiding redundant contract interactions and enables straightforward integration with other [DeFi](https://iq.wiki/wiki/defi) applications.\n\n## Level XP\n\nLevel XP is a system that tracks user contributions within the Level protocol. It serves as a metric for ecosystem participation.\n\nXP can be earned by depositing approved assets into the XP Farm via the Level dashboard. Deposits of lvlUSD and [Curve](https://iq.wiki/wiki/curve-finance) [LP](https://iq.wiki/wiki/liquidity-pool) tokens are handled through a contract based on [Ethena’s](https://iq.wiki/wiki/ethena) [LP](https://iq.wiki/wiki/liquidity-pool) [Staking](https://iq.wiki/wiki/staking) Pool, while other assets are deposited through a contract modeled on Zircuit’s Restaking Pool. Both contract types are adapted for use on Level and are designed to allow users to maintain control of their funds. Users can withdraw their assets at any time, as administrators cannot access user funds.\n\nDeposits are made through the Level application, and XP accumulation begins shortly after assets are deposited. Withdrawals can be made anytime without affecting the amount of XP earned.\n\n# Funding\n\nLevel raised additional venture capital to expand its [stablecoin](https://iq.wiki/wiki/stablecoin) amid growing interest in yield-generating digital assets during declining [crypto](https://iq.wiki/wiki/cryptocurrency) prices. Peregrine Exploration, the development firm behind Level, secured $2.6 million in a funding round led by existing investor Dragonfly Capital, with participation from [Polychain](https://iq.wiki/wiki/polychain-capital). New investors included Flowdesk, Echo syndicates Native Crypto and Feisty Collective by Path, and angel investors [Sam Kazemian](https://iq.wiki/wiki/sam-kazemian) of [Frax](https://iq.wiki/wiki/frax-finance) and [Albert Chon](https://iq.wiki/wiki/albert-chon) of [Injective](https://iq.wiki/wiki/injective-protocol). This round followed a $3.4 million raise in August, bringing total venture funding to $6 million.\n\n# Partnerships\n- [LayerZero](https://iq.wiki/wiki/layerzero)\n- [Polychain Capital](https://iq.wiki/wiki/polychain-capital)\n- Dragonfly Capital\n- [Aave](https://iq.wiki/wiki/aave)\n- [Morpho](https://iq.wiki/wiki/morpho-labs)\n- [Pendle](https://iq.wiki/wiki/pendle-finance)","summary":"Level is a stablecoin protocol offering lvlUSD, backed by USDC and USDT, to generate yield from lending protocols.","images":[{"id":"QmQRXGXxDCUTLbR1MsWhUFDaUD9EExhjkhPmEvGdMjznm3","type":"image/jpeg, image/png"}],"categories":[{"id":"defi","title":"defi"}],"tags":[{"id":"Stablecoins"},{"id":"Protocols"},{"id":"Ethereum"},{"id":"DEXes"},{"id":"Marketplaces"}],"media":[{"id":"QmQMsQg8gFxwASJvxBsqCBpbLkemRzrh2H1YeadcPD3E9p","name":"B1Z7EXsR8XvmlIfe.jpeg","caption":"","thumbnail":"QmQMsQg8gFxwASJvxBsqCBpbLkemRzrh2H1YeadcPD3E9p","source":"IPFS_IMG"}],"metadata":[{"id":"references","value":"[{\"id\":\"TBdI6E9pjS\",\"url\":\"https://level-money.gitbook.io/docs\",\"description\":\"Official documentation\",\"timestamp\":1745438132559},{\"id\":\"BzcFnHnrSj\",\"url\":\"https://level-money.gitbook.io/docs/introduction/stablecoins-the-next-level\",\"description\":\"Level mission statement\",\"timestamp\":1745438132559},{\"id\":\"nZLeu49zCc\",\"url\":\"https://level-money.gitbook.io/docs/how-it-works/lvlusd\",\"description\":\"lvlUSD documentation\",\"timestamp\":1745438132559},{\"id\":\"tSAMLNlaEA\",\"url\":\"https://level-money.gitbook.io/docs/how-it-works/lvlusd#minting-and-redeeming\",\"description\":\"Minting documentation\",\"timestamp\":1745438132559},{\"id\":\"MjcChRQfZ2\",\"url\":\"https://level-money.gitbook.io/docs/how-it-works/lvlusd#yield-and-reward-generation\",\"description\":\"Yield generation documentation\",\"timestamp\":1745438132559},{\"id\":\"9ggJSAfqBy\",\"url\":\"https://level-money.gitbook.io/docs/user-guides/lvlusd-key-use-cases\",\"description\":\"lvlUSD use cases\",\"timestamp\":1745438132559},{\"id\":\"rgkp3rsCYq\",\"url\":\"https://level-money.gitbook.io/docs/how-it-works/slvlusd\",\"description\":\"slvlUSD documentation\",\"timestamp\":1745438132559},{\"id\":\"wX8ib0mhUi\",\"url\":\"https://level-money.gitbook.io/docs/rewards/what-is-level-xp\",\"description\":\"Level XP documentation\",\"timestamp\":1745438132559},{\"id\":\"6EColLKPwj\",\"url\":\"https://level-money.gitbook.io/docs/rewards/what-is-level-xp#earning-xp\",\"description\":\"XP earning documentation\",\"timestamp\":1745438132559},{\"id\":\"705ACIaKxk\",\"url\":\"https://level-money.gitbook.io/docs/rewards/what-is-level-xp#withdrawing\",\"description\":\"XP withdrawal documentation\",\"timestamp\":1745438132559},{\"id\":\"EtLW3Ry9bH\",\"description\":\"Level\",\"timestamp\":1745438871069,\"url\":\"https://www.level.money/\"}]"},{"id":"twitter_profile","value":"https://x.com/levelusd"},{"id":"coingecko_profile","value":"https://www.coingecko.com/en/coins/level-usd"},{"id":"telegram_profile","value":"https://t.me/level_en"},{"id":"etherscan","value":"https://etherscan.io/token/0x7C1156E515aA1A2E851674120074968C905aAF37"},{"id":"contract_url","value":"https://ethplorer.io/address/0x7c1156e515aa1a2e851674120074968c905aaf37"},{"id":"previous_cid","value":"\"https://ipfs.everipedia.org/ipfs/QmYNfiEzXPvhqB9fbKT7vr9jGXTcw7LNsr7A1eAUNGygKT\""},{"id":"commit-message","value":"\"Republishing the Level wiki with updated content and details.\""},{"id":"previous_cid","value":"QmYNfiEzXPvhqB9fbKT7vr9jGXTcw7LNsr7A1eAUNGygKT"}],"events":[],"user":{"id":"0x8af7a19a26d8fbc48defb35aefb15ec8c407f889"},"author":{"id":"0x8af7a19a26d8fbc48defb35aefb15ec8c407f889"},"language":"en","version":1,"linkedWikis":{"blockchains":[],"founders":["david-lee","kedian-sun"],"speakers":[]}}