OVERNIGHT BLOG

Overnight Weekly Report 10/7/22

Overnight Weekly Report 10/7/22

Fellow Overnighters,

Here’s Overnight’s weekly report for the week of September 30 — October 7

We’re proud to announce that we’ve witnessed another week of consistent growth for all of Overnight’s products with a large chunk of the growth being driven by Optimism. In addition, we also outlined plans for the future of Overnight which we’ll expand more into in this week’s report.

With that said and without further ado, let’s dive into this week’s Weekly Report.

1) Development

Garnet ETS is now at Cap

Overnight’s Garnet ETS reached its TVL cap of $100,000 this week as a result of which no additional deposits can be made in the ETS. The cap is in place to prevent excessive dilution of APRs as it borrows OP via Granary — we’ve seen the money market have exorbitantly volatile borrowing rates lately.

Launch of Ruby ETS

Overnight launched its 2nd ETS on Optimism: Ruby. This is a much more scalable ETS than Garnet as it borrows ETH via AAVE and in turn, has better borrowing rates owing to better liquidity. As a result, this particular ETS doesn’t have any cap. For those unable secure a spot in Garnet, this is the next best alternative.

The Feats keep coming: $7M in TVL

We’re proud to announce that Overnight crossed a staggering $7M in TVL this week — another huge achievement for the protocol!

Unveiling plans for the Governance token: $OVN

We unveiled plans pertaining to our Governance token and asked our community for their thoughts on the best course of action with regard to a TGE model. We’ve seen lots of interesting answers, comments, and feedback and will make sure to take them into account.

All we can say that is OVN will complement USD+ and offer more products including insurance, tranching, etc.

Reaper now supports USD+ Vaults on Velodrome

Our friends over at Reaper have added support for USD+ Vaults on Velodrome — USD+/USDC & USD+/LUSD — and in doing so, users can stake their LPs with Reaper to compound their yields. The act of compounding involves liquidating earned velo for more LPs, therefore, turning your APRs into more APYs.

Velodrome Bribes

USD+ generated some lucrative bribes on Velodrome this week and the total amounts of a cumulative $5,500; $5,000 of which were generated by USD+/USDC with the remainder by USD+/LUSD.

As a reminder, being a Yield-Generating Stablecoin, all yields from USD+ in an LP on Velodrome are passed on as bribes — creating a flywheel effect whereby TVL compliments emissions.

2) Marketing

Overnight’s Blog

We’ve launched our very own blog page on our website where you can stay up to date with regard to all of our content. All blog posts, would in accordance, now be posted on both our medium as well as our own blog.

3) The Yield-Farmer’s Digest

Returns on Yield-Farming via USD+ pairs are extremely lucrative and are as follows:

Polygon:

vAMM USD+/WMATIC Gauge Pool on Penrose: 24% APR

For those bullish on MATIC, this is an excellent gauge pool and put your idle MATIC to work via Yield-Farming!

vAMM USD+/stMATIC Gauge Pool on Penrose: 27% APR

Staking in this Gauge Pool earns you yields from stMATIC’s Liquid-Staking & APYs from USD+ in addition to inflationary DYST & PEN rewards.

sAMM USD+/USDC Gauge Pool on Penrose: 8% APR

The USD+/USDC Gauge Pool has one of the highest yields on stablecoins on Polygon for those not keen on Impermanent Losses.

Impermanent Losses for this Gauge Pool are low as USD+ is pegged to USDC on Polgyon against its collateral.

BNB Chain:

vAMM WBNB/USD+ Gauge Pool on Unknown Money: 189% APR

For those bullish on BNB, this is a great place to park your assets and the yields are tremendously more in comparison with Pancakeswap — BNB Chain’s leading DEX.

sAMM USD+/BUSD Gauge Pool on Unknown Money: 16% APR

The USD+/BUSD Gauge Pool has one of the highest yields on stablecoins on BNB Chain for those not keen on Impermanent Losses.

Impermanent Losses for this Gauge Pool are low as USD+ is pegged to BUSD on the BNB Chain against its collateral.

sAMM MDB+/USD+ Gauge Pool on Unknown Money: 7% APR

Earn yields via MDB+ & USD+ respectively in addition to inflationary rewards; this gauge pool is highly lucrative and a true meaning of “Yields on Yields.”

Optimism:

sAMM USD+/LUSD Gauge Pool on Velodrome Finance: 22.23% APR

The USD+/LUSD Gauge Pool on Velodrome has the highest yields for sAMM stablecoins on Velodrome and the pool with the highest APRs via LUSD.

By staking in this pool, your USD+ yields are diverted as bribes and continue to increase the APRs — make sure to check it out!

sAMM USD+/USDC Gauge Pool on Velodrome Finance: 16.7% APR

The USD+/USDC Gauge Pool is an extremely lucrative pool; as USD+ is pegged to USDC, the Impermanent Losses for this pool are next to none.

In addition, by staking in this pool, yields earned from your USD+ would contribute to bribes and therefore increase your APRs.

3) Strategy Changes

Changes in strategies employed by the Overnight protocol can be viewed as follows for Polygon, Avalanche, BSC & Optimism. As a reminder, those curious, can view the day’s APYs and the yields from their corresponding strategies on our discord.

Polygon

Image 1: Portfolio as of September 30

Image 2: Portfolio as of October 7

From the images above, we can notice the following material changes:

a) Clear Pool USDC: To aid in the diversification of Overnight’s portfolio, we’ve decreased the allocation here to 25.1% from a former 30%

b) Gains DAI: Increased allocation to 19.3% from a former 10.1%

c) QuickSwap v3 USDC/USDT: In light of unreliable returns from Quickswap v3, we’ve decreased the strategy’s weightage to 0.5% from a former 4.5%

Avalanche

Image 1: Portfolio as of September 30

Image 2: Portfolio as of October 7

Owing to consistent returns from its Avalanche strategies, the Overnight protocol has made no changes to its portfolio this week.

BSC

Image 1: Portfolio as of September 30

Image 2: Portfolio as of October 7

Owing to consistent returns from its BSC strategies, the Overnight protocol has made no changes to its portfolio this week.

Optimism

Image 1: Portfolio as of September 30

Image 2: Portfolio as of October 7

From the images above, can notice the following material changes:

a) Beethoven x USDC: Introduced Beethoven’s Steady Beets, Yearn Boosted pool into our strategy with a total allocation of 23.4%

b) Rubicon DAI: Decreased allocation to 15.6% from a former 20.2% to account for the Beethoven Pool

c) Rubicon USDT: Decreased allocation to 11.5% from a former 15.1% to account for the Beethoven Pool

d) Rubicon USDC: Decreased allocation to 10.9% from a former 20.2% in light of the strategy’s depreciating returns and to account for the Beethoven Pool

Closing Comments

With that said, we conclude this Weekly Report; do join us in our weekly AMA on Monday, October 10 at 3:00 P.M UTC where we’ll be answering your questions!

Thank you and till next week

Share This Post

More To Explore