Fellow Overnighters,
Here’s Overnight’s weekly report for the week of October 14 — October 21.
We continue to innovate and make intuitive DeFi products accessible to a wider audience and will continue to do so. This week we’re happy to share some of our intriguing developments made with our community in that regard.
With that said, let’s dive into our weekly report.
1) Development
Overhaul of “Earn with USD+ Section”
We’ve made a complete overhaul of the “Earn with USD+” section — changes made are enlisted as follows:
Image 1: Shows the most popular ETS by APYs & TVL
Image 2: A list of the ETS and the strategy type (displays DEX, chain and token types)
Image 3: A complete and extensive list of USD+ pools sorted by TVL
Uni v3 ETS Relaunch
The initially launched Uni v3 ETS encountered some issues and hence why we had to post-pone it. The ETS rebalanced more often than expected as more mints were made therefore realizing greater Impermanent Losses.
After making the necessary changes, we believe to have resolved this short-coming and are due to commence testing tomorrow. The end product will be truly worth it!
Insurance
Another product that we’re looking to offer is our Insurance. With Insurance, we would offer both Senior and Junior tranches.
Senior Tranches (low risk, low yields & variable returns): A Lower-Risk strategy with built-in Coverage offering fixed rates and protected by Junior tranches.
Junior Tranches (higher risk, higher yields & variable returns): A Higher-Risk Strategy using leverage and offering variable Rates. Junior Tranching offers optimised yields and carries a higher grade of risk — protects Senior Tranches.
Updated Coingecko and DefiLlama TVL
Coingecko and Defillama now display Total Value Locked for USD+ respectively on all chains. While this does not include TVL for our ETS, we hope to incorporate this change soon.
Arbitrage Bots on Avax for Swapsicle Pools
After launching USD+ farms (namely: USD+/USDC & WAVAX/USD+) with our friends over at Swapsicle, we’ve deployed arbitrage bots designed to enhance volume and ensure a more consistent peg on the DEX. The parameters set to trigger the arbitrage bots are extremely narrow and set as such to deliver greater volume.
If under peg (<1 USDC), the arbitrage entails buying USD+ at a discount and minting for 1 USDC on Overnight’s dApp — the inverse persists if USD+ is over-peg (>1 USDC).
The magic of Overnight is that you’ll witness consistency and a much more stable enviornment — this helps enforce this.
2) Marketing
Long Read: How Decentralized Exchanges can Benefit from USD+
Decentralized Exchanges (DEXes) can leverage the Yield-Generation aspect of USD+ to their benefit and get more value accrual from their TVL. We’re seeing this model being employed on Velodrome, Dystopia, Swapsicle & Cone with more to join in the near future.
Read here to learn how USD+ is beneficial for DEXes.
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: 19% 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 Polgyon against its collateral.
BNB Chain:
vAMM WBNB/USD+ Gauge Pool on Unknown Money: 48% 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: 5% 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: 12.46% 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 continuing to increase the APRs — make sure to check it out!
sAMM USD+/USDC Gauge Pool on Velodrome Finance: 13.24% 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: 23.21% APR
The USDC/USD+ pool on Swapsicle some of the highest APRs on Avalanche. USD+ rebases are used to buyback POPS — the DEX’s native token — thereby creating a positive loop of goodness.
WAVAX/USD+ on Swapsicle: 31.04% APR
Earn a 31.04% APR for pairing your AVAX with USD+ on Swapsicle — an excellent pool for those bullish on AVAX!
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 14
Image 2: Portfolio as of October 21
Owing to consistent returns from its Polygon strategies, the Overnight protocol has made no material changes to its portfolio this week.
Avalanche
Image 1: Portfolio as of October 14
Image 2: Portfolio as of October 21
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 14
Image 2: Portfolio as of October 21
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 14
Image 2: Portfolio as of October 21
Apart from a few minor adjustments, the Overnight protocol has made no changes to its Optimism strategies this week owing to consistent yields.
Closing Comments
With that said, we conclude this Weekly Report; do join us in our weekly AMA on Monday, October 24 at 3:00 P.M UTC where we’ll be answering your questions!
Thank you and till next week.
