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![Ashborn95 Avatar](https://lunarcrush.com/gi/w:24/cr:twitter::1498659301019291651.png) Ashborn [@Ashborn95](/creator/twitter/Ashborn95) on x XXX followers
Created: 2025-07-17 14:46:14 UTC

Ever wonder how @LevelUSD v2 actually works under the hood?

Let’s break down how it's combining battle-tested system, strict security, and real yield, all without adding protocol bloat. 

X.
Level v2 uses the BoringVault standard (built by @veda_labs  same team behind vaults used by @ether_fi & @PlasmaFDN).
Vaults hold both idle stablecoins + yield-bearing positions like @Aave and @MorphoLabs.

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When you mint lvlUSD:
→ Your stablecoins go through a minting contract
→ @Chainlink oracles determine value
→ Collateral is routed into BoringVault
→ Then auto-deployed to Aave for yield.
Simple, but composable.

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To control this system, Level added a Vault Manager that routes capital to pre-approved strategies.
Hardcoded logic makes strategy selection more transparent and limits abuse vectors.

Yield flows to treasury via a Rewards Manager.

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Security upgrades go deep:
✅ 3-day timelock on all core contracts
✅ RolesAuthority system (based on Solmate)
✅ Emergency overrides via "StrictRolesAuthority" multisig can instantly remove roles in case of exploits.

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Plus, there’s PauserGuard- a granular pausing system that can stop specific functions (not just whole contracts).
Held by multisigs and external gatekeepers for faster off-chain response.

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Audits & monitoring:
→ Full audits by @PashovAuditGrp & @0xMacroSecurity
→ Ongoing bug bounty via @cantinaxyz
→ Threat detection from @hexagate_ auto-pauses protocol on critical triggers like undercollateralization.

TLDR:
Level v2 doesn’t just chase yield; it’s built with serious security discipline and protocol hygiene.
No sketchy wrappers. No opacity.
A smart blueprint for how stablecoin system should be structured in DeFi.


XXX engagements

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**Related Topics**
[positions](/topic/positions)
[stablecoins](/topic/stablecoins)
[etherfi](/topic/etherfi)
[protocol](/topic/protocol)
[hood](/topic/hood)

[Post Link](https://x.com/Ashborn95/status/1945857580351336699)