Level Money, an Ethereum-based stablecoin protocol, saw its total value locked (TVL) hit a record $6.5 million on Wednesday after surging 262% in the past month, according to data from DefiLlama.
The platform operates as a Collateralized Debt Position (CDP) product. It enables users to deposit stablecoins like USDC and USDT to mint its native stablecoin, lvlUSD, which mirrors the value of the US dollar while also generating yield.
Level Money positions itself as the first stablecoin powered by restaked USD stablecoins. lvlUSD holders earn interest while their stablecoin deposits are restaked to secure blockchain services. Level does all the behind-the-scenes work for restaking, including:
- Node management – the protocol collaborates with vetted node operators to run decentralized networks.
- Network curation – it curates the networks that the restaked dollar tokens will secure.
- Smart contract interfacing – it creates smart contracts to simplify interaction with restaking protocols like Eigenlayer, Symbiotic, and Karak.
USDT accounted for the lion’s share of Level deposits until October 5, but the latest increase in the protocol’s TVL was driven by USD0++ and sdeUSD, whose liquidity value surged from zero to $2.7 million and $1.5 million, respectively, within less than a week.
USD0++ is a dollar stablecoin offered by Usual Money, a real-world asset (RWA) protocol that has gained over 30% in the past month to a record $290 million in TVL.
sdeUSD is the staked version of deUSD, a stablecoin provided by Elixir, which offers liquidity infrastructure for decentralized trading.
On Wednesday, Level Money saw a record daily inflow of over $900,000 despite record USDC outflows exceeding $200,000.
Level Money, which is not available for US residents, is a decentralized protocol backed by major blockchain venture capital firms like Polychain Capital, Dragonfly, and Robot Ventures.
It has over 5,000 depositors, with more than 8,000 stablecoin holders whitelisted.
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