LEVEL: ONCHAIN BANKING PROTOCOL

Summary from the TLDR Crypto newsletter

Level has built an onchain banking protocol that aggregates USDC and USDT deposits, allocates them to low-risk lending strategies, and issues a single fungible stablecoin, lvlUSD, backed by the pooled receipt tokens. By accepting both native stablecoins and existing receipt tokens, Level solves fragmentation in DeFi lending and expands the on-chain money supply through transparent, programmable fractional-reserve operations. All reserve allocations and lending positions are fully onchain and auditable, combining the productivity of fractional-reserve banking with DeFi's transparency.