The Case for Dollar Restaking
At Level, the focus is on combining two vital cryptocurrency use cases: providing permissionless access to US Dollars and securing decentralized networks. The mission is to make it significantly easier to use dollar stablecoins to ensure economic security in decentralized systems. While staking currently relies on native cryptocurrencies for security, the absence of dollar-denominated staking (restaking) poses a major gap. Level aims to fill this gap by unlocking $160B in stablecoins to safeguard decentralized networks, offering stability, cost efficiency, and non-custodial yield opportunities. By allowing stablecoins to contribute to internet bonds, Level seeks to enhance the economic security landscape of decentralized networks.
Why Level?
Level introduces a new use case for stablecoins that enhances the security ecosystem for all stakeholders. For USDT holders, it offers stackable yield across multiple networks, stability through lvlUSD backed by stablecoins, simplicity in removing network complexities, and composability across DeFi. For decentralized networks, Level reduces security costs by unlocking new restakable assets, provides predictability in security expenses, and improves capital efficiency by eliminating the need to account for asset volatility.
Level USD: A New Primitive
Level aims to unlock $160B worth of stablecoins for economic security in the crypto space. Level USD (lvlUSD) is a yield-bearing, cross-chain dollar token backed 1:1 by restaked stablecoins. It allows stablecoin holders to earn restaking yields without exposure to volatile assets like ETH or BTC, and it can be used across DeFi for various purposes such as trading and lending. Level simplifies the process by handling node management, network curation, and smart contract interfacing, making it easier for users to contribute to decentralized network security. (Source: Level Docs)