Level Launches DeFi Yield Stablecoin After Securing $2.6 Million Funding

Peregrine Exploration has officially launched Level USD (lvlUSD), a new stablecoin designed to generate yield exclusively from decentralized finance (DeFi) sources. This launch comes alongside a successful funding round that raised $2.6 million, led by Dragonfly, with participation from Polychain and several new investors. The total funding for Level now exceeds $6 million.

Key Takeaways

• Level USD (lvlUSD) is a stablecoin that generates yield solely from DeFi sources.
• The recent funding round raised $2.6 million, bringing total funding to over $6 million.
• Level has rapidly grown its market capitalization to over $80 million within five months of its beta launch.
• The stablecoin is fully collateralized by fiat-backed stablecoins like USDC and USDT.

Innovative Approach to Yield Generation

Unlike many stablecoins that rely on centralized yield sources, lvlUSD focuses on decentralized mechanisms to generate returns. This approach minimizes counterparty risk and enhances transparency, allowing users to benefit from a more reliable yield.

• Yield Generation: lvlUSD generates yield through blue-chip lending protocols such as Aave, with plans to expand to Morpho.
• Market Performance: Since its beta launch in Q4 2024, lvlUSD has attracted over 10,000 users and achieved a total value locked (TVL) of $96 million.

Strategic Funding and Investor Support

The recent funding round was led by Dragonfly, a repeat investor, and included participation from Polychain and new investors like Flowdesk and Echo syndicates. Angel investors such as Sam Kazemian and Albert Chon also contributed.

• Funding Details:
  • Total Raised: $2.6 million
  • Total Funding to Date: Over $6 million
  • Key Investors: Dragonfly, Polychain, Flowdesk, Echo syndicates, Sam Kazemian, Albert Chon

Future Prospects for Level USD

As DeFi continues to evolve, Level is well-positioned to capitalize on the growing interest in yield-bearing stablecoins. The company aims to expand its utility and scale by integrating with leading DeFi protocols, including Pendle, Spectra, and LayerZero.

• Integration Plans: lvlUSD will be used as collateral on Morpho and is already integrated with several tier-1 DeFi protocols.
• Market Trends: The rise of DeFi-native yield strategies is attracting traditional finance (TradFi) and institutional players, reinforcing the long-term viability of this sector.

Expert Insights

Kedian Sun, co-founder of Level, emphasized the importance of DeFi yield in the current financial landscape, stating that Level is designed to embrace and scale these opportunities. Tom Schmidt from Dragonfly highlighted the strength of Level’s approach to yield generation, while Sven Wellmann from Polychain praised the transparency and innovation of the stablecoin.

As the DeFi ecosystem matures, Level’s commitment to providing sustainable, on-chain yield positions it as a key player in the future of decentralized finance. With its innovative approach and strong backing, Level USD is set to redefine the standards for stablecoins in the crypto market.