StableCOin protocol levels raised a fresh round of venture capital to expand its $ 80 million dividend-paying stablecoin, as yield-generating digital asset offers are increasingly in demand with a Crypto prices.

Peregrine Exploration, the development company behind Level, received another $ 2.6 million led by the early backer Dragonfly Capital with Polychain, who also participated, founders David Lee and Kedian Sun told Coindesk in an interview. New investors include Flowdesk, Echo Syndicates native crypto and feisty collective by path, and angel investors Sam Kazemian from Frx and Albert Chon from injective.

The latest round followed an increase of $ 3.4 million in August, bringing the total venture capital financing to $ 6 million to date.

Level, with its LVLUSD-TOKEN, competes in the rapidly growing stableecoin asset class, one of the hottest sectors in crypto and a tax among venture capital investments. StableCEOins – Cryptocurrencies with a fixed price, predominantly tied to the US dollar – is an important piece of infrastructure for trade and transactions on blockchains. However, the largest issuers generally do not offer dividends to users earned on assets in the backing reserve. Tether, for example, reported a $ 13 billion profit last year, partly from the US Treasury, supporting its $ 143 billion USDT -token.

Therefore, a new generation of dividend -earning stableecoins is becoming increasingly popular with cryptoinvestors. Ethena’s USDE, which generates dividends on a market-neutral carrying trade strategy that harvests futures financing rates, zoomed in over $ 5 billion delivery for a little more than a year. Meanwhile, tokenized versions of money market funds and finance ministries, another stablecoin alternative, hit a market value of $ 4.6 billion.

Level’s stableecoin offers investors who provide from putting support assets to work on decentralized financing (DEFI) loan protocols such as Aave while automating their reserve management. Users can mint lvlusd by depositing Circle’s USDC or Usdt StableCeCoins and unlocking (Stav) tokens to lend out to generate the yield on the chain. From last week, the annual dividend for stacked version of LVLUSD was 8.3%, higher than tokenized money market fund outcomes. Meanwhile, LVLUSD has been integrated with defi protocols such as commute, Spectra and Layerzero and can be used as security on Morpho.

“Their fully on-chain, transparent approach to yield generation separates them from competitors that depend on opaque, centralized methods,” said Sven Wellmann of Polychain, one of the investors in the protocol.

According to Level’s calculation, the protocol passed rival stablecoins’ dividend offering over the past month, which has helped its supply to surpass $ 80 million five months ago its beta launch.

With the latest funding, level plans to expand their team and marketing efforts while continuing to expand the tool to LVLUSD in addition to putting it, explained Kedian Sun. The protocol also plans to utilize Morfo to generate dividends in the next few weeks.

With these efforts, LVLUSD could potentially push against a market capital of $ 200- $ 250 million, an important milestone that the team wants to achieve, Sun said.