Level Money, an Ethereum-based stablecoin protocol, has seen its total value locked (TVL) reach a record $6.5 million, marking a 262% increase over the past month, according to DefiLlama. The platform operates as a Collateralized Debt Position (CDP) product, allowing users to deposit stablecoins like USDC and USDT to mint its native stablecoin, lvlUSD. This stablecoin mirrors the value of the US dollar while generating yield.

Level Money is notable for being the first stablecoin powered by restaked USD stablecoins. lvlUSD holders earn interest as their stablecoin deposits are restaked to secure blockchain services. The protocol manages node operations, network curation, and smart contract interfacing to simplify interactions with restaking protocols such as Eigenlayer, Symbiotic, and Karak.

The recent surge in TVL was driven by USD0++ and sdeUSD, whose liquidity values increased to $2.7 million and $1.5 million, respectively, within a week. USD0++ is offered by Usual Money, a real-world asset protocol, while sdeUSD is the staked version of deUSD, provided by Elixir.

Despite record USDC outflows exceeding $200,000, Level Money saw a record daily inflow of over $900,000 on Wednesday. The protocol, which is not available to US residents, is backed by major blockchain venture capital firms like Polychain Capital, Dragonfly, and Robot Ventures, and has over 5,000 depositors and 8,000 stablecoin holders whitelisted.