Fellow Overnighters,

Here’s Overnight’s weekly report for the week of October 21 — October 28.

We’ve made several intriguing developments this week; we’re at the fore-front of technological innovation and working with like-minded partners to help us in achieving this goal.

With that said, let’s dive into our weekly report.

1) Development:

Beethoven Boosted Pool USD+/DAI+ and $50K grant

We’re pleased to announce that Overnight has received a $50K grant from BalancerDAO with the purpose of utilizing the incentives as reward tokens on Beethoven for Optimism — we’ll be launching a USD+/DAI+ pool where both underlying assets will be Yield-Bearing.

For the unenlightened, DAI+ is also an Overnight product but the strategies would be mostly limited — holding USD+ will always be more lucrative. Only a + token can complement the capital-efficiency of USD+!

Partnership with Via Protocol

Interoperability (the ability for blockchains to communicate with each other) is at the very heart of DeFi. Hence, we thought it necessary to partner up with our friends over at Via Protocol — a protocol supporting bridging between 25 chains.

The partnership entails USD+ being supported for bridging across all 4 chains (namely: Optimism, Avalanche, BNB Chain & Polygon). In addition, Via also supports Cross-Chain swaps; this means that users can swap USDC on a given chain for USD+ on a completely different chain as the protocol also supports cross-chain swaps.

Added new Strategies on BNB Chain: Wombex BUSD, USDC & USDT

We’ve added Wombex BUSD, USDC & USDT as strategies on BNB Chain. This move helps us in supporting higher APYs while continuing to be Risk-Averse (the protocol is a Convex equivalent built on top of Wombat and yields boosted APRs — its popularity has led it to achieve nearly $90M in TVL)

dApp Updates: Brand new notifications and Pending Status

You may have noticed some additions to our dApp. Namely, once users submit a transaction for minting/redeeming USD+, they will see pop-ups to guide them — the screenshot attached below illustrates this.

Improved Gas Setttings

For a better User Experience, we’ve added the ability for users to customize the gas that they can choose on Overnight’s dApp — this gives users options to increase their gas fees directly without having to do so via metamask.

Insurance — A Work-In-Progress

We’re excited to bring Insurance to our users — the ETA for this is very short term — reference the following information on Senior & Junior Tranches with regards to this product.

Senior Tranches (low risk, low yields & variable returns): A Lower-Risk strategy with built-in Coverage offering fixed rates and protected by Senior 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.

ETS on Uni v3

We’re all intrigued by the concept of ‘Real-Yield’ (i.e, no inflationary tokens to reward Liquidity Providers) and rightly so; our Uni v3 ETS will combine the best of both worlds: Delta-Neutral & Real Yield.

After a slightly turbulent launch, we’ve revisited the drawing board and continue to rigorously test the strategy — users can expect a re-launch in the coming weeks.

2) Marketing

Long Read #1: Lucrative Stablecoin Yields & USD+

Holding USD+ on its own is an extremely lucrative proposition and matches up to the most profitable DeFi strategies — visit here to know more!

Long Read #2: What to do if your transaction is still stuck

We’ve made an FAQ for the most popular questions that users may ask in the event that they find that their transaction is not immediately processed — do give it a read!

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: 20% 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: 58% 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: 43% 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: 10% 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: 2% APR

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

Optimism:

sAMM USD+/LUSD Gauge Pool on Velodrome Finance: 16.71% 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: 11.72% 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: 21.16% 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: 33.99% APR

Earn a 33.99% 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 21

Image 2: Portfolio as of October 28

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

1) Synapse USDC: Decreased weightage to 50.3% from a former 55.6%

2) Clear Pool USDC: Increased weightage to 30.2% from a former 15%

3) Gains DAI: Increased weightage to 17.1% from a former 15%

4) Khyberswap USDC/USDT: Removed the strategy owing to depreciating returns

Avalanche

Image 1: Portfolio as of October 21

Image 2: Portfolio as of October 28

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 21

Image 2: Portfolio as of October 28

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

1) Synapse BUSD: Decreased weightage to 46.7% from a former 49.9% to support Wombex strategy additions

2) Wombex USDC/USDC/BUSD: Added the strategies with 1% weight, each. We’ll be looking to increase the allocation for Wombex this week as well.

Optimism

Image 1: Portfolio as of October 21

Image 2: Portfolio as of October 28

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

1) Reaper Sonne USDC: Increased the weightage to 14.5% owing to more lucrative returns

2) Reaper Sonne DAI: Increased the weightage to 12% from a former 8% owing to more lucrative returns

3) Beethoven X USDC: Decreased weightage to 9% from a former 13%

4) Rubicon USDT: Decreased weightage to 4% from a former 10% owing to lower returns and shift in favour of the above strategies

Closing Comments

With that said, we conclude this Weekly Report; do join us in our weekly AMA on Monday, October 31 at 3:00 P.M UTC where we’ll be answering your questions!

Thank you and till next week.