Improving Protocol Efficiency: How can Decentralized Exchanges Benefit from USD+

What is USD+?

The saying within DeFi goes that money lying idle is an untapped source of yields. A user not utilizing their assets loses out on the opportunity costs (i.e, the alternative source of yields that they could have earned had they invested it in a Yield-Generating source). Overnight Finance’s Flagship Stablecoin — USD+ — solves exactly this!

The Role of USD+ in Helping DEXes Maximize Efficiency

For DEXes to maximize value accrual from their TVL, they must generate the maximum possible revenue from Liquidity Pools. The more the value accrual, the more revenue that the protocol can pass on to its stakeholders. Considering that DeFi has been facing a downturn owing to a bear market, generating revenue becomes even more quintessential as lesser liquidity is available to realize revenue from.


Velodrome has proven itself to be the missing piece of the puzzle to Andre Cronje’s ambitious ve 3,3 model. The DEX boasts a vast $82M in TVL and is the leading DEX on Optimism — a growing L2 chain.


Swapsicle is a derivative of Uni v2 on Avalanche and emissions are allocated via the protocol exercising its best judgment. It can be said that choosing to incentivize USD+ TVL has proven to be a shrewd decision. Like Velodrome, USD+ yields within a Liquidity Pool on the DEX are skimmed and used to buy back the protocol’s native token — $POPS.


Dystopia is the equivalent of Velodrome on Polygon and the DEX, upon realizing the benefits of USD+, has chosen to incentivize USD+ liquidity for crucial pairs. Encouraging liquidity to stay unhindered is a challenge for every DeFi protocol yet Overnight compliments exactly this.

Closing Comments

DEXes have much to gain from USD+ and its yield-bearing nature. The possibilities are endless and the value accrual to protocols is vast as evidenced above.

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