Getting started
Welcome to the Overnight docs. This is a live document that will be updated as Overnight evolves. Here you will find all the information that you need to know about Overnight.
‘Overnight’ stands for overnight interest rate, the interest rate one receives by lending money for the shortest duration possible - 1 night.
Overnight is a DeFi protocol behind USD+, a yield generating stablecoin with a daily profit payout.

Characteristics

- A yield generating stablecoin pegged to USDC that is 100% collateralized with yield-generating DeFi assets
- A DeFi equivalent of a Money Market fund, with a highly conservative and liquid [DeFi] portfolio, generating a yield of 1-5 bps. per day and a daily distribution of profits
- A fully decentralized protocol performing all of its activities fully on-chain with an unparalleled level of disclosure and transparency
There are many ways one could manage stablecoin cash, but with USD+ one avoids:
  • In-depth market research and active trading
  • Monitoring and working with numerous DeFi protocols
  • Minting and redeeming manually
With USD+, all that hassle is reduced to something as simple as buying a token. No staking required.
In other words, managing stablecoin cash is risky, cumbersome, and costly. USD+ solves these problems for 3 distinct groups of stakeholders:
  • For fiat investors; USD+ solves for easy access to a superior yield generation with minimum risk and maximum liquidity
  • For the crypto community; USD+ simplifies stablecoin cash management, an opportunistic and non-core activity, that can be time-consuming and costly
  • For AMMs; USD+ provides an opportunity to earn a yield on massive amounts of liquidity locked in protocols like SushiSwap and Uniswap, liquidity that is not currently generating any yield for them

Use cases

For fiat investors:
  • An online broker, aka Robinhood, lets its clientele buy USD+ from its app as a high yield alternative to the money market fund
  • A neobank, aka Revolut, builds a savings account, with the rate linked to Overnight's yield
  • A qualified investor invests in a registered/regulated fund in a respectable jurisdiction, e.g. Switzerland, Singapore, or the Netherlands, that holds USD+
For the crypto community:
  • A crypto-investor temporarily exits its ETH position and holds USD+ tokens as a ‘risk-free yield generating alternative’ until their market view improves
  • A new blockchain project raises [Х] mil USD in cryptocurrency and stablecoins to fund its 2-year roadmap, project chooses to keep it in USD+ to minimize volatility while earning ~2 bps / 7.6% APY a day
For AMMs:
  • A decentralized exchange, aka SushiSwap, lowers fees and sponsors USDC/USD+, wETH/USD+, etc. trading pairs, as it starts receiving interest on USD+ posted by liquidity providers
The above use cases are centered around yield generation. As USD+ is a stablecoin, there are many use cases around payments, be that P2P, B2C, or C2B, onchain or across chains. Given USD+ is pegged to USDC, onchain to off-chain use cases are also possible.
Last modified 4d ago
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