Overnight’s Products as a Treasury Asset

A Safer Choice for your Treasury: What is USD+?

When we at Overnight set out to build USD+, we perceived navigating DeFi and managing Yield-Farms to be cumbersome. What we delivered was a tremendously Capital-Efficient Stablecoin and the ecosphere’s very own version of a Money-Market equivalent. Holding the Stablecoin on its own generates a staggering 8–12% APY from its strategies. The yields are also passed on to LPs making them tremendously more profitable than what they already were — another unique proposition. This renders USD+ as an enticing Yield earning potential that DAOs could potentially tap into. For the basics on how the Stablecoin works, refer to the image below.

Grow Your Treasury: The Yield-Generating Narrative

Having liquid cash available on your treasury’s balance assets is always a good thing; you can deploy your stables at a given notice. Nevertheless, it’s even better if those stables are earning yields. With USD+, this is made as simple as buying and holding it; it has consistently delivered 8–12% APYs — holders earn daily yield payouts from its strategies. After all, a DAO that manages to deploy its treasury in an efficient manner and manages to grow it is a winner after all. The perfect match for the two scenarios mentioned above? You guessed it, USD+! Here’s the historical breakdown of USD+ APYs.

Higher Yields with Lower Risk: Delta-Neutral Strategy: ETS

The ETS (Exchange-Traded-Strategy) is an additional product launched by Overnight that eliminates the hassle(s) of volatile LP Farming. To partake in the usual Yield-Farming puts an individual in a dilemma. Should they choose to proceed, they’re vulnerable to the downside of the volatile token, therefore, decreasing their overall portfolio balance. Similarly, not partaking in Yield-Farming results in them losing out on the opportunity costs (i.e, the Yields that they could have gained).

Treasuries that hold Overnight’s Products: USD+ & ETS

In order to earn yields from USD+, a treasury must acquire it first. The easiest way to do so is via Overnight’s dApp via USDC. The greatest part about this swap is there’s no slippage and the swap ensures users get a 1:1 ratio. The swap fee is 0.04% and is redistributed back among holders of the Stablecoin — acting as a deterrent in front-running the day’s payouts.

Sphere Finance

Sphere Finance dubs itself the S&P 500 of Crypto whereby holders enjoy exposure to a diversified portfolio of cryptocurrency projects. Sphere’s ultimate goal in this regard had been to grow its treasury and achieve forced appreciation for its native token — $SPHERE.

Otter Clam

Following suit from Sphere, Otter Clam too paired their native token — $CLAM — with USD+. Not only are their Liquidity Providers enjoying boosted yields from USD+ but the protocol simultaneously benefits from Forced Appreciation; this acts as a small yet passive buyback every time yields from the stablecoin are accrued. Had they been paired with vanilla USDC, they wouldn’t have reaped this advantage.

Hybrid Finance

Hybrid Finance has been an avid supporter of Overnight and has acquired positions in some of Overnight’s best-yielding ETS as well as USD+; their dedicated Infinity Pool serves exactly this purpose.

Your DAO

While the examples above could be useful, they’re surely not the only way to benefit from USD+. If you’re a DAO looking to add USD+ to your treasury assets, we’d be happy to discuss ideas for how to make that happen — the possibilities with USD+ are endless!

What to do Next

As outlined previously, we’re happy to have a conversation with any DAO looking to diversify their treasuries into USD+ and reap its benefits. We would love to expand more on its mechanics, why it’s a Game-Changer within DeFi, and why it upholds the ideals of fostering capital efficiency. Should you want to get in touch with the team, hop on our Discord/Telegram or drop us a message on Twitter.

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