Introduction
Overnight Finance is at the forefront of decentralized finance (DeFi), transforming stablecoin farming with its USD+, a yield-generating, fully collateralized stablecoin available on multiple blockchains. This innovative approach enhances flexibility and security for DeFi participants. Collateral is crucial for stablecoin stability and trust; thus, we’ll explain how to verify the collateral of Overnight’s stablecoins—a vital step in safeguarding investments in DeFi.
It’s important to understand blockchain technology and DeFi basics. Overnight Finance’s stablecoins are supported on several independent chains like Base, Arbitrum, Optimism, zkSync, Linea, and Blast. Each chain operates separately, containing risks to a single chain in case of issues. Yield variations across these chains provide options for yield farmers, with Base, Linea and Blast currently being the most active.
Step-by-Step Guide to Checking Collateral
Checking the collateral for Overnight Finance’s stablecoin products is straightforward and accessible to anyone, given the public nature of DeFi farming. Here’s a simple guide:
1. Visit http://app.overnight.fi/
2. On the left sidebar, select the stablecoin product for which you want to check the collateral. For this guide, we will use USD+ as an example.
3. Once you click on USD+, you’ll be redirected to a new page.
Once on the new page, scroll down to view the breakdown of each strategy for the specific stablecoin product on the chosen chain. For instance, if you selected USD+ on the Base Chain, you would see the strategies currently enabled.
4. Scroll down to view the breakdown of each strategy for that specific stablecoin product on the chosen chain. In this case, it’s USD+ on the Base Chain.
5. The currently enabled strategies are: Compound USDbC, ETS Aave&Aerodrome USDC/WETH, ETS Moonwell&Aerodrome USDC/WETH.
6. Click on each strategy to get more details and click the “Debank Link” to verify the strategy on-chain and see the portfolio’s activities.
7. After clicking the “Debank Link”, you will be redirected to a new page where you can see the strategy on-chain. This lets you verify what the strategy is doing and provides comprehensive insight into its performance.
And that’s it! You can now easily verify all the information listed on the Overnight Finance website. This enables you to perform your own due diligence and make informed decisions.
Conclusion
The openness and transparency of DeFi and blockchain technology provide security and confidence for yield farmers and risk-averse DeFi enthusiasts. By checking the collateral of stablecoin products on Overnight Finance, you can make informed decisions about your yield farming strategies. Overnight Finance stands at the forefront of this revolution, providing benefits and flexible options for all its users.
