@madlaboratoor
This ingenuity is a fully collateralized yield-bearing stablecoin, minted permissionlessly from USDC and USDT. Unlike Ethena USDe, lvlUSD generates its yield not through the mystical arts of perps funding and delta-neutral strategies, but by deploying the stablecoin deposits into lending protocols such as Aave, with a portion of the lending receipt tokens restaked into protocols like Symbiotic.
In other words, a composable assortment of yields, if you will.
Though Levels is not completely immune to the inherent risks of it’s sister Ethena, it does create a new paradigm in DeFI stablecoin composability.
Imagine a new project swiftly bootstrapping protocol liquidity using fully collateralised staked Level USD (slvlUSD) or a hybrid combination of Level USD, Ethena USD, and/or restaked ETH in Eigenlayer.
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