lvlUSD

lvlUSD is a stablecoin fully backed by USDC and USDT

Minting and Redeeming

lvlUSD can be permissionlessly minted using only USDC and USDT, which form the lvlUSD reserves. Redemptions are currently permissioned.

Yield and Reward Generation

The USDC and USDT in the lvlUSD reserves are used to generate yield in DeFi protocols.

Level supplies the USDC and USDT into blue-chip lending protocols like Aave to generate yield. Currently, all reserves are deployed to Aave but they will soon be diversified into other lending protocols such as Morpho. The receipt tokens from these protocols (e.g. aUSDC or aUSDT from Aave) are then wrapped to become yield-accruing assets.

Currently, a portion of these wrapped tokens (waUSDC or waUSDT) is subsequently restaked in Symbiotic to earn additional restaking rewards. The waUSDC and waUSDT are used as collateral to provide economic security for shared security networks, also known as Actively Validated Services (AVSs) by Eigenlayer.

Yield and Reward Distribution

All the lending yield and restaking rewards are initially accumulated by Level. Currently, Level passes back all yield and rewards to users. Lending yield is distributed to slvlUSD via the staking contract and restaking rewards are passed to lvlUSD via the farming contract. More details in following sections.