Level Developer Raises $3.6M to Launch the First Stablecoin Protocol Powered by Restaked Dollar Tokens, Announces Deposits Program
Level USD is the First Stablecoin Designed to be Backed by Restaked Dollar Tokens
NEW YORK, Aug. 29, 2024 /PRNewswire/ — Peregrine Exploration, a blockchain development and research company, today announced $3.6 million in funding co-led by Polychain Capital and Dragonfly to develop Level, the first stablecoin protocol powered by restaked dollar tokens. Investors Robot Ventures, Pier Two, EIV and Global Coin Research and angels Balaji Srinivasan, Jeff Feng (Sei), Julian Koh (Aevo), Sidney Powell (Maple Finance) and others also participated in the round.
Level’s stablecoin will be launched in closed beta in the coming weeks, allowing users to mint Level USD (lvlUSD) and earn Level XP (points), restaking points, and Aave yield on their dollar tokens like USDT and USDC. Users can deposit their USDT on the Level website to secure a spot on the waitlist.
Restaking is a way for crypto assets to be used to provide crypto-economic security for decentralized networks. Level is developing an innovative stablecoin model built on restaking protocols.
lvlUSD is a decentralized, scalable stablecoin that earns crypto-native restaking yield by contributing to crypto-economic security. The major restaking protocols — including Symbiotic, Karak and most recently, Eigenlayer — have all announced that they will support the use of any token to be used for economic security, including dollar tokens.
By abstracting away the complexities of restaking dollar tokens, Level will unlock approximately $160 billion worth of dollar tokens to participate in the restaking economy. Protocols that need economic security — referred to as Actively Validated Services (AVSs) on Eigenlayer — benefit by getting dollar denominated security without the volatility, making it easier to price and forecast their security.
“Level was founded on the belief that the two most important use cases of crypto are the permissionless access to digital dollars and the ability to provide economic security to decentralized networks,” said Peregrine Exploration CEO David Lee. “Level combines these two use cases into a single product, opening up a whole new world of opportunities for restakers, AVSs, and DeFi users.”
Level has also formed an AVS Alliance with over 10 AVSs that are exploring using stablecoins for economic security. This Alliance will foster collaboration between AVSs and support the growth and development of the restaking space. Level’s ecosystem also includes some of the leading operators, including Pier Two, Finoa Consensus Services and Kiln.
“The assets that are used for economic security is an important consideration for AVSs. Diversifying the mix could result in cheaper and more stable security,” said Felix Xu, CEO of ARPA Network, one of the 16 live Eigenlayer AVSs currently secured by approximately $3.7 billion of ETH. “We’re excited to work with Level and introduce stablecoins as an asset to secure our network.”
“Stablecoins have proven to be one of the true killer apps for crypto, reaching over $168B AUM and growing. But today stables are ‘stuck’ and only able to access yield through on-chain lending,” said Tom Schmidt, general partner at Dragonfly. “Level is breaking through with a new option, allowing those stablecoins to help secure networks that power entire ecosystems and help holders get compensated for doing so. We’re excited about Level’s ability to help builders create entirely new applications and grow the GDP of the crypto market.”
About Level
Level is the protocol behind Level USD (lvlUSD), a stablecoin backed by restaked dollar tokens. Level abstracts away the complexities of restaking, allowing lvlUSD users to provide economic security with their dollar tokens and earn restaking yield without exposure to the price volatility of cryptocurrencies like ETH and BTC. lvlUSD will be able to be used in the rest of DeFi as a novel stablecoin primitive. Level unlocks approximately $160B worth of stablecoins to be used to provide economic security for Actively Validated Services (AVSs), removing volatility and making it easier to price and forecast security. For more information, reach out to the Level team at hello@level.money and visit https://www.level.money/.
SOURCE Peregrine Exploration
