Overnight is a DeFi protocol behind USD+, a yield generating stablecoin with a daily profit payout
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.
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.
You can deposit your USDC or buy USD+ on the open market to start earning passive yield directly to your wallet.