SGR 42: slvlUSD

slvlUSD Gauge Request:

• Targeted Pair: LP-slvlUSD
• IBT contract address: 0x4737d9b4592b40d51e110b94c9c043c6654067ae
• Current TVL on in the Pair’s liquidity: $24k
• Current TVL as IBT: $7.4m
• Twitter: https://x.com/levelusd
• Discord: https://discord.gg/levelusd
• chain : Ethereum Mainnet

Simple summary:

Level is a stablecoin protocol issuing lvlUSD, the first stablecoin backed by restaked dollar-denominated tokens like USDC and USDT. Level allows users stack yield from multiple sources like lending and restaking without losing USDC or USDT exposure. At the moment, the yield is entirely coming from USDC/USDT in Aave. We plan on restaking and supporting additional lending protocols in thefuture.

All yield is paid out to slvlUSD, which is an ERC-4626 compliant token. This proposal aims to add a Gauge for the slvlUSD Spectra Pair.

We’d like to add this pool to Spectra’s gauge system to incentivise liquidity of our PT, as it would expand the use cases for lvlUSD and slvlUSD. More specifically:

• Since slvlUSD yield is variable, Spectra PTs enable users to lock a fixed yield
• Level also rewards points for users who lock unstaked lvlUSD for 7 days. PTs offer a way for users to earn both yield and XP if it were accepted as collateral on lending protocols like Morpho

Spectra stands to benefit from the increased TVL and exposure to the Level community. In fact, a number of people in our Discord have already been asking for an integration:

The pool for the slvlUSD pair has been live since January 14, 2025.

Benefit of this integration for Level

• Additional yield opportunities for the community or the protocol treasury
• Increase the visibility of the project
• Increase the TVL of the liquidity pool

Benefit of this integration for Spectra

• Increase the tokenized TVL and the AMM TVL
• Diversify the yield possibilities
• Increase Spectra’s visibility

Metrics:

• lvlUSD market cap: $20.4m
• slvlUSD market cap: $7.4m
• 7 day trailing APY for slvlUSD (exact terms on website): 49.89%
• Twitter followers: 12.2k