USD+ (Optimism)

USD+

USD+ is a yield-bearing and rebasing token collateralized by a basket of stablecoins deployed on multiple DeFi protocols

Risk Rating
Best
$1.00
0.14%
Summary
What we like
Offers users a permissionless, decentralized method to gain exposure to a non-volatile store of value that is backed by its underlying collateral.
What we like less
The underlying collateral for USD+ is redeposited into external DeFi platforms, which exposes users to additional economic and technical risks.
What it means for you
USD+ is a great instrument to passively earn yield through its elastic supply. You receive yield directly in your wallet through its rebasing mechanism.
Information
Blockchain
  • Optimism
Key Metrics
  • Market Cap: $74M
  • Fully Diluted Valluation: $74M
  • FDV / MC: 1
  • Ranking inside Exponential (among stables): #15
  • Circulating Supply: 73,949,110
  • Total Supply: 73,949,110
  • Volume (24H): $9.3M
  • ATH: $1.25 (01/10/2024)
  • ATL: $0.74 (07/26/2023)
Risk Assessment
Best
Asset Strength

USD+ is a low-cap, fully collateralized asset. This asset is exposed to the underlying risks of Overnight and Optimism bridge, which are protocols rated as Watch out and Average, respectively.

USD+ is a stablecoin that trades within 100bps of its peg to USD, making it a somewhat volatile store of value.

Asset Tokenomics

USD+ has an uncapped supply but has inflation control or burn mechanisms in place.

Dependencies

Overnight


Optimism Bridge

Things to know about USD+

How is USD+ created?

USD+ is a yield-generating stablecoin created by Overnight. It is fully backed by yield-generating assets and pegged 1:1 to USDC. Users can mint USD+ from the official Overnight front-end app by converting USDC. Once minted, the USD+ begins to immediately accrue compounded yield. Overnight uses a liquidity index reflecting the current ratio of the number of issued USD+ tokens to the volume of assets on strategies, expressed in USDC. USD+ is able to generate yield as the protocol deploys the underlying stablecoins to third-party DeFi platforms. The yield generated from interest, trading fees, and protocol rewards is pooled and converted to stablecoins to produce USD+-denominated yield. This yield is passed on to USD+ holders through a constant rebasing of the token supply. This allows the USD+ price to stay pegged at 1 USD while the user's token balance adjusts in real-time to reflect the accrued yield.

What is USD+ used for?

USD+ is a price-stable asset that is mostly used as a hedge against volatility as it maintains a stable value of around 1 USD. Users need an alternative store of value and medium of exchange to navigate the highly volatile crypto markets. USD+ addresses this problem for crypto native users, as well as allows users to passively earn yield while held directly in their wallets.

How is the price of USD+ kept stable?

USD+ is an asset-backed currency that maintains a free-floating peg to the USD. This means that its value may differ from exactly 1 USD from time to time given current market conditions. The protocol's rebasing function treats 1 stablecoin as 1 USD+ to protect user balances from being impacted by the daily fluctuations in the prices of the underlying stablecoins. Since the rebase function only counts the number of tokens, the user's USD+ balance should only increase over time. This is paid out by Overnight as a daily profit.