How Overnight works

Overnight is a DeFi protocol that issues USD+, a yield generating stablecoin with a daily profit payout. USD+ is a fully collateralized stablecoin that is backed by yield-generating assets and pegged 1:1 to USDC. Users can mint USD+ from the official Overnight front-end app by converting USDC. Once minted, the USD+ begins to immediately accrue compounded yield. Overnight uses a liquidity index reflecting the current ratio of the number of issued USD+ tokens to the volume of assets on strategies, expressed in USDC. USD+ is able to generate yield as the protocol deploys the underlying stablecoins to third-party DeFi platforms. The yield generated from interest, trading fees, and protocol rewards is pooled and converted to stablecoins to produce USD+-denominated yield. This yield is passed on to USD+ holders through a constant rebasing of the token supply. This allows the USD+ price to stay pegged at 1 USD while the user's token balance adjusts in real-time to reflect the accrued yield.

How Overnight makes money

The protocol applies a 0.04% fee on all minting and redeeming of USD+. The fee goes to the Overnight collateral pool and is used to compensate existing USD+ holders for the accumulated but not yet paid out daily profit. There is currently no revenue accrual mechanism for Overnight itself.

How you make money on Overnight

You can deposit your USDC or buy USD+ on the open market to start earning passive yield directly to your wallet.