In a world where volatility is the norm, stablecoins have emerged as the bedrock of the crypto ecosystem, seamlessly bridging the gap between stability and innovation.

While some are still searching for crypto’s “killer app,” stablecoins like Tether and USDC have become indispensable, collectively accounting for more than $200 billion in market cap.

These digital assets not only provide a safe haven during market fluctuations but also fuel liquidity across cryptocurrency exchanges, enabling smoother trading operations. 

Yet, despite their utility, a major gap remains: their ability to generate meaningful returns.

The Problem

Stablecoins excel at preserving value, but for holders, they offer little to no return. 

Borrowers benefit from decentralized lending platforms like Aave or MakerDAO, but lenders often settle for modest interest rates. 

This imbalance leaves a significant opportunity untapped—how can we make stablecoins work harder?

The Solution

This is where Level comes in. 

Level is a stablecoin protocol that issues Level USD (LvIUSD), the first stablecoin backed by dollar-denominated tokens re-staked on shared security protocols like EigenLayer, Symbiotic, and Karak. This approach not only enables stablecoin holders to earn base yields through lending but also introduces a second layer of returns through “restaking.”

Restaking allows Level to amplify returns by providing economic security for Actively Validated Services (AVS), such as decentralized storage, computation, and blockchain security. 

Think of it as owning a rental property: you earn rental income and, over time, the property appreciates in value. Similarly, Level leverages stablecoins to generate layered value creation, transforming them into high-performing assets.

‍Why Now?

The timing couldn’t be better. 

Stablecoin transfer volume on Base, a blockchain network backed by Coinbase, surpassed $520 billion in November 2024, signaling immense demand for yield-bearing solutions. 

Level’s dual-yield strategy optimizes income potential while relying on the stability of dollar-backed assets, offering a groundbreaking solution in an expanding market.

‍The Founders

Behind Level are Kedian Sun and David Lee, a duo with exceptional credentials and deep industry expertise. 

Kedian, a former investment banker at Lazard, brings a wealth of financial acumen, while David, previously a software engineer at Flexport, contributes technical innovation.

Over the last 18 months, they have meticulously developed and refined various stablecoin models, demonstrating a keen understanding of what it takes to bring yield-bearing stablecoins to market.

Market Potential

Level’s early traction speaks volumes. 

Despite not yet launching its product, the platform has already secured $10 million in Total Value Locked (TVL) as of December 2024.

As an early mover in the stablecoin restaking space, Level is well-positioned to establish a strong competitive moat, attract significant liquidity, and redefine the stablecoin landscape.

Our Investment Thesis

We are proud to co-invest in Level alongside renowned crypto-focused funds like Dragonfly, Polychain Capital, Robot Ventures, and notable angel investors like Balaji Srinivasan. 

Level aligns perfectly with our vision of investing in transformative technologies that challenge the status quo and redefine financial opportunities.

By combining the reliability of stablecoins with innovative restaking mechanisms, Level is not just a platform - it’s a glimpse into the future of decentralized finance. 

We are excited to support Kedian, David, and the entire Level team on their journey to revolutionize stablecoin utility and create new opportunities for the broader DeFi ecosystem.

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For further information, visit www.level.money.