The use case is the lifeline of stablecoins.
Metcalfe's Law is used to describe the value of a network, specifically, the value (V) of a network is proportional to the square of the number of nodes (n) in the network. In the context of stablecoins, the dimensions of measuring "nodes" include not only users but also use cases (such as exchange trading pairs, DeFi integrations, payments, etc.). Therefore, the value of a stablecoin can be expressed as:
Number of users: Individuals, institutions, or protocols that hold or use the stablecoin.
Number of use cases: Applications of the stablecoin in different fields, such as trading, lending, payments, staking, etc.
As the number of users and use cases increases, the utility and liquidity of the stablecoin improve, and its market value and acceptance grow accordingly. This growth is nonlinear (squared), as each new user or scenario not only brings direct value but also amplifies the overall network value through interactions with other nodes.
Why do I say that Level is a stablecoin born for "use cases"?
- Low Risk: Backed by Robust Assets and Transparent Governance
Level's low-risk mechanism:
Asset backing: $lvlUSD is fully backed by USDC and USDT, which together account for about 80% of the stablecoin market and are the most trusted fiat-backed assets in the crypto market. Their low credit risk provides a solid anchoring foundation for $lvlUSD.
Source of income: The reserve assets of $lvlUSD (USDC/USDT) are deposited in top lending protocols like Aave and Morpho, providing scalable and reliable income streams.
On-chain transparency: Level employs on-chain governance and income distribution mechanisms, with all reserve and income distribution data available for blockchain queries.
- High Yield: Optimized Income Distribution Mechanism
Level's high-yield mechanism:
Source and distribution of income: The reserves of $lvlUSD are deposited in lending protocols like Aave, and these earnings are distributed to $slvlUSD through the ERC-4626 vault standard, continuously accumulating returns.
Low staking ratio amplifies returns: By April 2025, only 30-45% of $lvlUSD will be staked as $slvlUSD. This means that all lending income is concentrated and distributed to about 1/3 of the token holders, significantly enhancing the effective yield of $slvlUSD.
Market performance: Since the launch of income distribution in mid-December 2024, the annualized yield (APY) of $slvlUSD has stabilized at 8.3% (Level dashboard), higher than Aave's USDC deposit rate.
- Capital Efficiency and Utility: Deep DeFi Integration and Network Effects
Level's capital efficiency and utility mechanism:
Multi-protocol integration: $lvlUSD and $slvlUSD are deeply embedded in leading DeFi protocols such as Morpho, Pendle, Spectra, and Curve.
Comparative advantage: Compared to receipt tokens from lending protocols, the multi-scenario integration of $lvlUSD and $slvlUSD significantly enhances their DeFi usability.
Capital efficiency: Users can cycle their investments through Morpho to lend and invest in Pendle or Curve, continuously amplifying the returns on initial capital.
Finally, how to participate?
The Level XP program is still operational; you can earn points by saving money or bringing in new users.
Participation link: https://app.level.money/farm?referralCode=x6n8h5
(Level must be on major exchanges, trust me)
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