USD+ (Optimism)
USD+ is a yield-bearing and rebasing token collateralized by a basket of stablecoins deployed on multiple DeFi protocols
- Optimism
- Source Code
- Website
- Community
- Discord
- Telegram
- Contract address
- Contract address
- Asset Type: ERC-20
- Market Cap: $74.1M
- Fully Diluted Valluation: $74.2M
- FDV / MC: 1
- Ranking inside Exponential (among stables): #15
- Circulating Supply: 74,032,037
- Total Supply: 74,040,979
- Volume (24H): $4.7M
- ATH: $1.25 (01/10/2024)
- ATL: $0.74 (07/26/2023)
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.
USD+ has an uncapped supply but has inflation control or burn mechanisms in place.
Overnight
Optimism Bridge
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.