OVN Token Sale

September 11, 2023

Overnight will conduct the presale of its OVN token followed by a public Sale, on Base blockchain. The presale would be conducted to whitelisted members only based on Ovenight’s fully distributed valuation (“FDV”) of 20M USD, the valuation for the public sale will be disclosed after the presale is complete.

Typically, stablecoin protocols trade on FDV/TVL ratio, with current trading levels ranging from 0.8x to 1.1x See table below

Market Trading comparisons

	Angle	Lybra	Frax
FDV (M USD)	31	150	547
TVL (M USD)	27.5	152	693
P/TVL	1.1	1.0	0.8

Source: DefiLama for TVL, CMC for FDV, September 8th, 2023

In January 2022, more than 1.5 years ago, Overnight raised funds at 10 M USD FDV. Over the last 6 months Overnight’s TVL has fluctuated in the range of 30-50M USD, revenue – in the range of 100-220K USD per month. Sensitivity analysis of Overnight’s FDV indicates a conservative FDV in the range of 24-50 M USD, with upside potential of 3-5x from these levels.

Overnight FDV Sensitivity Analysis

	Scenario 1	Scenario 2	Scenario 3
FDV (M USD)	24	50	120
TVL (M USD)	30	50	100
P/TVL	0.8	1.0	1.2

Source: Trading comp analysis, historical performance

We believe the value of the protocol largely exceeds the presale FDV, in particular, as the token issue would unlock Overnight’s growth potential beyond its historical highs. However, we are conducting the pre-sale at 20M in order to reward the community members for helping bootstrap the protocol to a size that is unheard of without additional rewards.

In order to obtain the whitelist spot, users have to obtain a presale NFT. The presale will be conducted using an Overflow farming method. Details below

OVN Presale NFT

OVN Presale NFT gives its holders an opportunity to participate in the OVN presale, without a maximum contribution. The NFT can be obtained either (1) by minting the NFT by participating in a Galxe campaign or (2) via one of our launch partners.

In order to mint via Galxe, users would have to subscribe to Overnight’s Twitter, retweet the presale announcement, Join our Discord and have USD+ in his wallet.

The alternative route is to obtain the NFT via one of our launch partners. Prior and during the presale, Overnight would conduct a number of events dedicated to spreading the information about OVN token, OVN presale and subsequent public sale. As part of the event, Overnight would provide a limited number of NFTs to its partners for distribution among its communities. NFTs would then be distributed to community members at partners’ discretion. We expect some of the NFTs to be distributed based on the active participation in joint events, in particular, the AMAs conducted by our partners.

Overflow Farming Presale

OVN presale will be conducted using the Overflow Farming method. Similar to the overflow method in every other aspect, the overflow farming has one crucial difference. In the traditional overflow method, a fixed amount of OVN tokens would be distributed among sale participants proportionally to their contributions with funds exceeding the hard cap returned to them after the presale.

In case of Overflow Farming contributors could be rewarded for joining the presale early and receive the farming bonus. The farming bonus will be formed with USD+ rebase, accumulated with USD+ committed to the presale. It will be distributed proportionally to the time the funds have been in the presale vault. The calculation formula is: Rebases ÷ sum(amount × time²) × user(amount × time²). Thus, the earlier contributors, would obtain yield on their committed funds in excess of the normal USD+ yield.

Overflow Farming Sale

OVN token sale will be conducted using the same mechanics as the presale. The only differences will be (1) public access, i.e. no NFT required to participate (2) valuation which will be made public once the presale is complete.

OVN Presale Parameters

The private presale will be accessible through a whitelist. Whitelisted participants will hold a special NFT that would be required to participate.

The presale would be conducted on Base.

Presale Date & Time

Platform: Overnight dapp (app.overnight.fi/presale)

Start of sale: September 18, 12:00 UTC

End of sale: September 25, 11:00 UTC

Duration: 7 days

Method: Overflow Farming

Soft cap: 350K USD+

Hard cap: 500K USD+ (2.5% of total initial supply)

Price: 20 USD+ per token

Individual cap: none

Overflow Farming Pool: 25,000 OVN

IDO Contract:

Overflow funds and farming bonus claimable on the End of sale
25% of OVN will be claimable at the End of OVN Sale
75% of OVN will be linearly vested over 4 weeks period, beginning 5 days after the End of sale

OVN Sale Parameters

OVN Sale will be open to public, i.e. will not require an NFT and will be larger in size. The sale will be conducted on Base. Specific valuation will disclosed once presale is complete.

Presale Date & Time

Platform: Overnight dapp (app.overnight.fi/presale)

Start of sale: September 25, 12:00 UTC

End of sale: October 01, 13:00 UTC

Duration: 7 days

Method: Overflow Farming

Soft cap: 500K USD+

Hard cap: 1000K USD+

Price: TBD

Individual cap: none

IDO Contract:

Overflow funds and farming bonus claimable on the End of sale
25% of OVN will be claimable starting the End of Sale
75% of OVN will be linearly vested over 4 weeks period, beginning immediately after the End of sale

How will the Overflow Farming Method work?

The Overflow Farming Method is a novel token sale mechanism designed to ensure a fair and efficient allocation of tokens during an initial offering. It operates in several stages, as outlined below:

Token Sale Registration: Participants register for the token sale by providing their wallet addresses and the amount of USD+ they wish to contribute. There is no minimum nor maximum contribution limit.

Initial Allocation: Based on the total amount raised during the registration period, the tokens are initially allocated proportionally to all participants, according to their contribution size. If the sale is oversubscribed, the excess funds will be placed in an “overflow” pool.

Overflow Distribution: If there is an overflow pool, the excess funds are distributed back to the participants proportionally, based on their initial contributions.

Farming Bonus Distribution: The farming bonus will be formed with USD+ rebase of the USD+ contributed by the participants. It will be distributed back to the participants as a function of their initial contributions and the time the USD+ has been in the pool.

Final Token Distribution: Once the allocation process is complete, participants can claim their tokens by interacting with the token sale smart contract.