Fellow Overnighters,
Here’s Overnight’s weekly report for the week of October 7 — October 14.
The protocol continues to portray consistent growth and DEXes continue to adopt USD+ as they realize the inherent benefit of USD+, i.e, being tremendously capital efficient and fully collateralized. This weekly report, among others, summarizes some of the developments made in that regard.
With that said and without further ado, let’s dive into this week’s Weekly Report.
1) Development
Added Reaper USDC, DAI & USDT Folding Vaults on Optimism
We’ve added Reaper’s USDC, DAI & USDT Folding Vaults on Optimism to our strategies; the vaults make use of Sonne — an Optimism native money market. The act of folding refers to opening a lending & borrowing position simultaneously (hence the term folding) to benefit from the emissions that make it profitable to do as such. Reaper determines the optimal LTV (Loan to Value) every 2 hours via its automated tools and enacts on this to maximise yields.
In addition, Reaper has wavered the 0.1% withdrawal fees for Overnight to facilitate the protocol in depositing/withdrawing at will.
Swapsicle adds USD+ Farms on Avalanche: USD+/USDC & WAVAX/USD+
We’ve had our first major breakthrough on Avalanche as Swapsicle now supports USD+ farms including USD+/USDC & WAVAX/USD+. 100% of the yields generated by USD+ within the LP on Swapsicle at the time of the rebase would be used to buyback POP — their native token.
This ultimately is more beneficial for Swapsicle than using USDC in farms in that it generates additional buy pressure for the DEX.
For a reference to the yields on this pool, refer to the Yield-Farmer’s Digest (section 3 of this weekly report).
$8M in Total Value Locked (TVL)
USD+ has grown by $1M week on week consecutively this month and its TVL now amounts to a cool $8M; this is a testimony to the benefits of USD+ and the innovation that it fosters.
2) Marketing
Long-Read: Overnight’s Products as a Treasury Asset
The benefits for a given DAO (Decentralized Automated Organizations) to utilize USD+ in its treasury is tremendous. USD+ acts as a DeFi equivalent of a money market, generating yields on a low-risk basis whereas the ETS — a medium-risk delta-neutral strategy — generates slightly higher yields. Prospective protocols looking to utilize Overnight’s products can benefit from the Yield-Generation that they benefit from in that regard.
If you’re aware of any protocols that are actively looking for a treasury investment, do tell them about the benefits of Overnight’s products and reference them to this long-read.
New Video on Overnight: How to avoid ILs with Overnight’s ETS
Our friend, Degen Chad has made an extensive video on Overnight regarding its role in helping Yield-Farmers avoid Impermanent Losses (ILs) — do give it a watch!
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: 21% 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: 21% 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 Polygon against its collateral.
BNB Chain:
vAMM WBNB/USD+ Gauge Pool on Unknown Money: 39% 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: 11% 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: 3% 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: 16.06% 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: 10.81% 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 increasing your APRs.
Avalanche
USDC/USD+ on Swapsicle: 21.63% APR
The USDC/USD+ pool on Swapsicle some of the highest APRs on Avalanche. USD+ rebases are used to buyback POP — the DEX’s native token — thereby creating a positive loop of goodness.
WAVAX/USD+ on Swapsicle: 19.39% APR
Earn 19.39% APR for pairing your AVAX with USD+ on Swapsicle; an excellent pool for those bullish on it!
4) Strategy Changes
Changes in strategies employed by the Overnight protocol can be viewed as follows for Polygon, Avalanche, BSC & Optimism. As a reminder, for those curious, can view the day’s APYs and the yields from their corresponding strategies on our discord.
Polygon
Image 1: Portfolio as of October 7
Image 2: Portfolio as of October 14
From the images above, we can notice the following material changes:
a) Gains DAI: Increased allocation to 22% from a former 19.3% in light of better yields
c) Clear Pool USDC: Decreased allocation to 15% from a former 25.3% to aid in diversification
c) Khyberswap USDC/USDT: Introduced the concentrated liquidity strategy on Polygon with an allocation of 5%
d) Quickswap USDC/USDT: Substituted in favour of Khyberswap owing to it having better APYs
Avalanche
Image 1: Portfolio as of October 7
Image 2: Portfolio as of October 14
Owing to consistent returns from its Avalanche strategies, the Overnight protocol has made no material changes to its portfolio this week.
BSC
Image 1: Portfolio as of October 7
Image 2: Portfolio as of October 14
Owing to consistent returns from its BSC strategies, the Overnight protocol has made no material changes to its portfolio this week.
Optimism
Image 1: Portfolio as of October 7
Image 2: Portfolio as of October 14
From the images above, can notice the following material changes:
a) Beethoven x USDC: Decreased allocation to 14.2% from a former 23.4% owing to lower yields realized and to account for the Reaper vaults
b) Rubicon USDT: Decreased allocation to 12.2% from a former 11.5% to account for the Reaper vaults
c) Rubicon Sonne Vaults: Introduced vaults for USDT, DAI & USDC with allocations 11.2%, 8.1% & 5.6% respectively.
d) Aave: Increased lending USDC on Aave to 2.5% from a former 1%
Closing Comments
With that said, we conclude this Weekly Report; do join us in our weekly AMA on Monday, October 17 at 3:00 P.M UTC where we’ll be answering your questions!
Thank you and till next week.
