Can Level lvlUSD Offer The Best Low-Risk Stablecoin Yield?

May 29, 2025

Kedian Sun, Co-founder of Level, dives into the world of stablecoins with a focus on lvlUSD. He discusses how Level’s innovative two-token structure offers attractive yields while addressing the risks involved. The conversation highlights strategies for using lvlUSD across various DeFi platforms like Pendle and Curve. Kedian also explores the competitive landscape of yield-bearing stablecoins, emphasizing the importance of transparency and lower-risk options for investors. Get ready for insights on the future of capital efficiency in the stablecoin ecosystem!

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INSIGHT

Level as On-Chain Bank

Level is like an on-chain bank using USDC and USDT deposits lent to low-risk protocols such as Aave and Morpho.
It aims to offer commissionless banking products that increase financial inclusion and accessibility globally.

INSIGHT

Diverse Stablecoin Yield Models

Yield-bearing stablecoins range from low-risk savings types to higher risk investment-like products with differing risk profiles.
More options in the market encourage innovation and help serve diverse investor needs, reducing direct competition.

ADVICE

Growing Stablecoin Demand

To increase stablecoin demand, focus on onboarding institutional capital with varying risk appetites.
Also target emerging markets by offering commissionless banking products to grow the user base and total capital on-chain.

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Kedian Sun is the CoFounder at Level.

In this episode, we dive into Level, a new stablecoin protocol offering yield lending USDC and USDT to blue-chip protocols, including how Level’s design enables higher yields, what risks and tradeoffs come with that, and how stablecoin farmers can put lvlUSD to work across DeFi protocols like Pendle and Morpho.

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Timestamps

0:00 - Intro
1:21 - What is Level?
6:06 - Sponsor break
8:42 - Competition among yield-bearing stablecoins
15:11 - Level’s plan to attract net new users onchain
17:43 - Level’s two-token design: lvlUSD vs slvlUSD
19:42 - Sponsor break
20:22 - Why hold lvlUSD over slvlUSD?
22:08 - Level XP Farms
23:51 - Newly launched Morpho vaults for Level
27:27 - Designing for low-risk yield
33:31 - Sponsor break
34:51 - Level markets on Pendle Finance
36:47 - Earning with lvlUSD deposits on Morpho
37:27 - What happens to lvlUSD after XP incentives expire?
42:08 - Closing

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🔗 Guest Links 🔗

► Level website: https://www.level.money/
► Level on X: https://x.com/levelusd
► Kedian Sun on X: https://x.com/KedianSun

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All opinions expressed by hosts and podcast guests are solely their own opinions. Podcast guests and hosts may have positions in the assets or other matters discussed in this podcast. This podcast is for informational purposes only and should not be relied upon as a basis for investment decisions. Do your own research. This is not a recommendation or endorsement to buy any token(s) related to any platform(s) discussed.