Overnight Weekly Report 4/11/22

Fellow Overnighters,

Here’s Overnight’s weekly report for the week of October 28 — November 4.

1) Development

This week, we launched the WETH/USDC Uni v3 ETS using Arrakis — a protocol offering automated Liquidity Management strategies for Uniswap. This ETS benefits from the OP farming incentives and uses our in-house Delta Neutral Strategy (i.e, borrowing ETH via AAVE) to provide consistent yields on stables.

In addition, to make getting in & out of the ETS more accessible, we’ve seeded a liquidity pool on Velodrome — the pool is USD+ / ETS/WETH/USDC. To acquire the ETS, simply head on over to Velodrome and buy the ETS.

The pool follows suit from our self-bribing strategies; 100% of the yield generated from the underlying Yield-Bearing Assets will be reinvested as bribes to veVELO holders to further incentivize liquidity provisions. Emissions commence from next epoch and may just be the most lucrative stable pool by Overnight to date!

If you’re still unaware of what the ETS, give this blog a read!

Swapsicle has some of the most lucrative yields for USD+ and to further boost your APRs into more APYs, Beefy has launched USD+ pools for USD+/AVAX & USD+/USDC respectively — reference the image below.

Sushiswap’s latest innovation includes Trident Pools that offer concentrated liquidity among other features. We’re proud to announce that Overnight is the very first protocol to have a Trident Farm earning SUSHI emissions — a huge accomplishment. To give you a context, Sushiswap has a cumulative $580M in TVL and is one of the largest DEXes within DeFi.

Having a USD+/USDC Pool on Sushiswap helps establishing deep liquidity and getting more users to know about the Yield-Bearing nature of USD+. Currently, the pool sits at a staggering $126K in TVL.

Read here to know more!

On 3/11/22 it was discovered that deposits/withdrawals for the Trifecta Pool on the Aequinox DEX (a Balancer fork) had been disabled owing to a test function being misimplemented on a production environment. As a result, $404,000 in funds held by Overnight on the DEX could no longer be withdrawn for a period of at least 10 years — mints/redeems for USD+ were temporarily disabled during this time.

At the time of conducting our due diligence on the DEX, we found no such issues (the function was added after afterwards) and deemed Balancer’s code to be reasonably secure — the misapplication of code from a production environment caused such a situation to arise.

For the sake of continuing operations on BSC, we valued the Aequinox LPs at a nominal value of $0 and were forced to carry out a negative rebase of 85%. We realize the nature of such a move and have a compensation in place — this is illustrated below. Reference our discord if you’re still uncertain about this move or if you have any questions.

Actions taken by Overnight to mitigate losses on BSC

As a reminder, this is limited to the BNB Chain and not applicable to any other chains that Overnight is on.

2) Marketing

Long Read: Overnight Becomes the First Ever Protocol to Leverage SushiSwap’s Trident Pool

SushiSwap’s latest Trident Pools move away from the usual concept of the Constant Product Formulae (X*Y=K) and offers concentrated Liquidity Managements. One of the unique features in that regards is facilitating trades between highly correlated assets at minimal slippage and allowing Liquidity Providers to set their custom swap fee.

Overnight is the very first protocol to have a Trident Pool and in doing so, seeks to establish deep liquidity for USD+ via this move.

Reference the long read to know more about what this move entails.

3) The Yield-Farmer’s Digest

Returns on Yield-Farming via USD+ pairs are extremely lucrative and are as follows:

vAMM USD+/WMATIC Gauge Pool on Penrose: 17% 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: 45% 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: 10% 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.

sAMM USD+/LUSD Gauge Pool on Velodrome Finance: 17.25% 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: 17.14% 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.

USDC/USD+ on Swapsicle: 16.49% 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: 29.26% APR

Earn a 33.99% APR for pairing your AVAX with USD+ on Swapsicle — an excellent pool for those bullish on AVAX!

Closing Comments

With that said, we conclude this Weekly Report; do join us in our weekly AMA on Monday, November 7 at 12:00 P.M UTC where we’ll be answering your questions!

Thank you and till next week.

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