Recommendation from DeFi committee C
Details
The proposal describes Overnight’s yield-bearing stablecoin and yield strategies. The re-submitted proposal focuses more clearly on liquidity for the existing products.
Value-Add
The USD+ stablecoin is 100% collateralized with other stablecoins that are invested on-chain in “low-risk strategies” such as LPing on stables, lending & more. The integration of another yield-generating stable in the Optimism ecosystem can have benefits for Optimism users. With additional incentives, Overnight can add liquidity to key pairs on Optimism and improve efficiency - long-term effectivity & sustainability are yet to be seen for this relatively new project.
Traction
Overnight is an early stage project that initially attracted liquidity on Polygon and BSC but moved most liquidity to Optimism. It has gathered a total TVL of more than $8+ Mio since its launch on Optimism in early September.
The yield strategies have decent APYs but they are so far capped at 100K and have only a few users. Yields will likely go down with higher TVL amounts.
Overnight does not have all the contracts public, it has closed open source portfolio rebalancing algorithms behind ETS until at least the public sale of the OVN governance token.
Amount
300K OP : Okay for a relatively new project with value-add where long-term functionality & efficiency is yet to be proven:
- 175K OP for liquidity mining of USD+ (stables)
- 125K OP for liquidity mining of ETS+ (USDC-ETH, OP-USDC)
Co-incentives
300K USD+
Alignment
Overnight has moved towards Optimism and is integrating with Op projects.
KPIs
Reasonable KPIs but Optimism should also look at the value-added from the additional TVL
TVL = 15m USD
Users = 2000
Recommendation : YES
Our past recommendation is available on committee recommendation thread