Restaking
The collateral used to mint lvlUSD will be deposited into protocols like Symbiotic, Karak, and Eigenlayer where they will be used to secure AVSs.
How restaking works
When users mint, their collateral will be sent to the
LevelReserveManager
.The Level multisig will periodically allocate the underlying collateral to vaults on restaking protocols. Level plans on supporting Eigenlayer, Symbiotic, and Karak initially
Though each has its nuances, assets allocated to restaking vaults (also sometimes known as strategies) let decentralized networks (aka AVSs) and operators for these networks opt into using the vaults for economic security
To facilitate redemptions, the Level multisig can also withdraw assets from each restaking network periodically. Restaking protocols implement a cooldown period on redemptions (typically 7-10 days).
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