Overnight.fi USD+ (Optimism)Price

(USD+)

Overnight.fi USD+ (USD+) is a yield-generating stablecoin designed for a stable peg to the US dollar, operating across multiple blockchain networks, including Optimism. It is fully collateralized by a basket of other stablecoins like USDC, DAI, and USDT. The protocol generates yield by deploying these underlying assets into conservative DeFi strategies, such as lending and stable-to-stable liquidity pools on third-party platforms. Holders receive daily profit payouts through a "rebase" mechanism; a positive rebase increases USD+ balances when collateral value exceeds 100%, while a negative rebase can occur if it falls below that threshold.

USD+ aims to maintain a free-floating peg to the US dollar, typically trading within 100 basis points of $1. The "NAV of 1" policy is central to its stability, ensuring that the market value of the underlying assets equals the amount of USD+ in circulation. While it is designed to be 1:1 with USDC, its market value may occasionally differ slightly from exactly 1 USD due to prevailing market conditions and dynamics.

Holding USD+ involves several inherent DeFi risks. These include potential smart contract vulnerabilities, despite audits. There's also third-party protocol risk, as underlying collateral is deployed into external DeFi platforms, exposing users to their economic and technical risks. For those staking USD+, liquidation risk means capital might absorb debt from liquidated positions, potentially decreasing balances. De-pegging events, such as the EraLend hack in 2023, demonstrated scenarios where security incidents in underlying protocols could lead to losses. However, the project employs a "risk-first portfolio" approach and uses OVN token insurance to absorb initial losses during negative rebases.

Users can acquire USD+ by minting it directly from the official Overnight application using USDC. It can also be traded on various decentralized exchanges operating on Optimism. Simply holding USD+ in your wallet allows you to passively earn yield through its daily rebase mechanism. Additionally, users can lend out USD+ or participate in other Earn products for further returns. Staking USD+ in Stability Pools offers opportunities to earn additional rewards from liquidation gains and token emissions. USD+ is also available across multiple chains, including Arbitrum, Base, Linea, and Blast, beyond Optimism.

The OVN token is the utility token within the Overnight protocol. Its primary functions include being used for "bribes" to promote USD+ adoption and incentivize conservative risk strategies across the ecosystem. OVN holders also gain voting rights, enabling participation in decentralized risk monitoring and management within the protocol. Furthermore, locking USD+ tokens grants users veUSD+, which represents enhanced voting power for governance proposals, allowing community input on the protocol's direction and risk parameters.

Overnight.fi has undergone security audits by reputable firms, including Hacken in February 2022 and Ackee Blockchain between January and February 2023. While certain audits reported no high-severity issues within their scope, recommendations were made. These suggestions focused on enhancing the project's security posture, specifically advising the development of more exhaustive test suites and the creation of comprehensive documentation to further bolster the protocol's robustness and transparency.