Level
About
Level is a stablecoin protocol that issues lvlUSD, a fully-backed stablecoin whose reserves (USDC and USDT) are deployed into blue-chip lending protocols to generate yield. Users can stake lvlUSD to receive slvlUSD, an ERC-4626 vault token that appreciates in value as the protocol passes lending yield back to stakers. The protocol is being sunset as the team joins the Sky (fka MakerDAO) ecosystem, with redeem-only mode active and final yield distribution scheduled for October 2, 2025.
Where Does Yield Come From?
Where the yield comes from
The stablecoins (USDC and USDT) that back every lvlUSD are not sitting idle. The protocol lends them out through well-known lending platforms — Aave (where it receives aUSDC and aUSDC as receipts) and the Morpho Steakhouse USDC Vault (where it receives steakUSDC). These receipt tokens track the growing lending interest inside the protocol.
How the yield flows to stakers
All the lending interest earned from the full pool of reserves goes to slvlUSD holders — the people who stake their lvlUSD. The protocol keeps only the extra Morpho token rewards for itself; everything else passes through to stakers.
slvlUSD works like a vault (technically an ERC-4626 token). When you stake lvlUSD, you get slvlUSD shares. As lending interest flows into the staking contract, each slvlUSD share becomes worth more. So you don't receive yield as separate payments — the value of your slvlUSD simply grows over time.
Why staking can boost the return
Every lvlUSD in circulation earns lending interest, but only staked lvlUSD (slvlUSD) receives it. This creates a multiplier effect: if few people stake, the same pool of yield is divided among fewer slvlUSD holders, making each holder's effective yield higher than the base lending rate. More stakers means the boost shrinks, and vice versa.
Unstaking and cooldown
If you want to convert slvlUSD back to lvlUSD, there is a 3-day waiting period (cooldown). This gives the lending protocols time to pull back liquidity when many people request withdrawals at once.
Extra incentives (now ended)
There were also non-cash rewards: Level XP (farming points) and Symbiotic restaking points, though restaked positions were already being withdrawn.
Current status
The protocol is being wound down. It is now in redeem-only mode — no new lvlUSD can be minted. The final yield distribution happened on October 2, 2025.
Persons
David Lee
Cofounder
Audits
| Audit / Date | Findings | Verdict |
|---|---|---|
| The audit report was not accessible due to a closed billing account on the storage bucket, so no security assessment can be derived from this document. | |
| The Level v2 security review by 0xMacro could not be fetched because the hosting Google Cloud Storage bucket has a disabled billing account, making the PDF unavailable for analysis. | |
| The audit report was not available for analysis because the Google Cloud Storage bucket returned a billing account closed error, so no security assessment can be derived from this document. | |
| The audit document could not be accessed due to a Google Cloud Storage billing account closure; therefore no vulnerability assessment can be made from this report. | |
| The lvlUSD v1 Spearbit Cantina audit report is hosted on a Google Cloud Storage bucket with a closed billing account and cannot be accessed. Without the document, no assessment of protocol safety can be made from this audit. | |
| The Zellic audit report for Points Farm could not be accessed because the Google Cloud Storage bucket's billing account is closed, so no safety assessment can be derived from this report. |
Backers
Level raised $3.6M in a funding round announced on August 29, 2024, as stated in the protocol's official X (Twitter) announcement. The X profile bio lists the protocol as "Backed by @dragonfly_xyz @polychain." The Level website homepage (level.money) displays logos of Polychain Capital, Dragonfly Capital, and Blockchain Founders Capital (BFC.vc) under the "Building with" section, alongside protocol integration partners. No specific round series, valuation, or additional funding dates beyond the $3.6M raise have been disclosed on official sources.
Legal
Legal form
Limited Liability Company (LLC)
Registration jurisdiction
Wyoming, USA (registered as Irving Digital Holdings LLC, a Wyoming limited liability company)
Status and notes
The operating entity is Irving Digital Holdings LLC, a Wyoming limited liability company, as disclosed in the Terms and Conditions and Privacy Policy hosted on the official GitBook documentation site (level-money.gitbook.io). The Terms state they are governed by Wyoming law. The protocol is being sunset; the team is joining Sky (MakerDAO) ecosystem as part of Grove. Terms last updated February 4, 2026; Privacy Policy last updated February 6, 2026.