Overnight is a DeFi protocol behind USD+, a yield generating stablecoin with a daily profit payout

Risk Rating
Protocol Code Quality
Protocol Maturity
Protocol Design
What we like
Overnight offers a fully collateralized, yield-generating stablecoin that acts as a DeFi equivalent of a money market fund with a daily profit distribution.
What we like less
The underlying collateral is exposed to third-party technical risks as it is deposited into third-party DeFi platforms.
What it means for you
Offers you a simple way to passively earn yield on your USD, while maintaining exposure to a non-volatile instrument to hedge your portfolio against market conditions.
Key Metrics
  • TVL: $38M (Rank #74)
  • TVL Ranking by Yield: #0
  • Blockchain: Arbitrum, Optimism, Binance, zkSync Era, Polygon
  • Chain TVL
    • Arbitrum: $21.26M
    • Optimism: $10.59M
    • Binance: $4.1M
    • zkSync Era: $1.7M
    • Polygon: $386.79K
Risk Assessment
Protocol Code Quality
  • Code reviewed by at least one experienced auditor; Hacken audited in February 2022
  • Public team promotes accountability
  • No documented protocol hacks since launch
Protocol Maturity
  • Core protocol launched in 2021; maturity over a year reduces technical risk as smart contracts are moderately battle-tested
  • Bottom 80% by total value locked increases risk
  • Centralized governance increases risk
  • At least one critical governance issue documented
  • No governance token and/or contracts are fully immutable
Protocol Design
  • No concerns identified
Things to know about Overnight

How Overnight works

Overnight is a DeFi protocol that issues USD+, a yield generating stablecoin with a daily profit payout. USD+ is a fully collateralized stablecoin that is 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.

How Overnight makes money

The protocol applies a 0.04% fee on all minting and redeeming of USD+. The fee goes to the Overnight collateral pool and is used to compensate existing USD+ holders for the accumulated but not yet paid out daily profit. There is currently no revenue accrual mechanism for Overnight itself.

How you make money on Overnight

You can deposit your USDC or buy USD+ on the open market to start earning passive yield directly to your wallet.

Overnight Pools