Stablecoin’s protocol level aims to expand the $ 80m defi yield token with fresh capital increase
The level of stablecoin protocol Cooldown at crypto prices.
Exploring Peregrine, the back -level firm, received another $ 2.6 million led by the early Bacar Dragonfly Capital with the polychain also participating, founders David Lee and Kedian Sun said CoinDesk in an interview. New investors include Flowdesk, Echo syndicates native crypto and feisty collective by path, and angel investor Sam Kazemian of Frax and Albert Chon of Injective.
The latest twist followed a $ 3.4 million increase in August, bringing total venture capital funds to $ 6 million to the present.
The level, along with its lvlusd token, competes with the fast-growing Stablecoin owner class, one of the hottest crypto sectors and a darling in venture capital investments. Stablecoins – cryptocurrencies with a fixed price, predominantly tied to the US dollar – are a major piece of infrastructure for trading and transactions with blockchains. However, the largest gives do not usually offer yields to users obtained in backing reserve assets. For example, Tether reported $ 13 billion income last year, in part from the US treasury yield supporting the $ 143 billion USDT token.
That is why a new generation of Ani-Earning Stablecoins is increasingly popular with crypto investors. The USDE of Ethhena, which forms the yield in a market-neutral that has the approach to harvesting futures funding rates, zooming above the $ 5 billion supply a year. Meanwhile, tokenized versions of money market funds and Treasury bills, another alternative stablecoin, hit the $ 4.6 billion market capitalization.
Stablecoin offers the level of investors from placing back -up assets to work with financial decentralized lending protocols such as AAVE, while automating reserve management. Users can mint lvlusd by depositing the USDC of the Circle or USDT Stablecoins and locking (stake) tokens to lend to generate Ani-chain. Like last week, the annual harvest for the staked version of Lvlusd stood at 8.3%, higher than the tokenized money market funding. Meanwhile, Lvlusd is integrated with defi protocols such as pendle, spectra and layerzero, and can be used as collateral in Morpho.
“Their fully on-chain, transparent approach to produce a generation sets them out of competitors who rely on opaque, centralized methods,” said Sven Wellmann of Polychain, one of the protocol investors.
According to Level calculation.
In the latest funds, level plans to expand their team and marketing efforts while continuing to expand the utility for LVLUSD beyond its prevalence, Kedian Sun explained. The protocol also plans to tap Morpho to produce produce for the next few weeks.
In those efforts, Lvlusd could potentially push towards a $ 200- $ 250 million market cap, a major milestone that the team wanted to achieve, Sun said.
