Exchange

Minting

USD+ can be minted in exchange for USDC using a 1:1 exchange rate by connecting a wallet at https://app.overnight.fi.

The received USDC is transferred to the PortfolioManager, where the received assets are deposited to the specified strategies.

Redeeming

Users can redeem their USD+ for USDC using a 1:1 exchange rate by connecting their wallet at https://app.overnight.fi/

If necessary, the PortfolioManager will launch the process to withdraw from strategies needed for the amount of USDC required for the return to take place. The level of collateral below the critical threshold gives a client ability to receive a proportional share of assets from the Vault.

Payouts

Once a day Overnight calculates the payout.

The income is received by strategies, after which the liquidity index on the USD+ is adjusted per the volume of assets on strategies (Strategy).

Fees

The fee in line with stable-to-stable conversion fees on most protocols is 0.04% and is applied to each trade,but some protocol pools can be higher and may have exit fees. The fee goes to the Overnight collateral pool and serves to compensate existing USD+ holders for the accumulated but not yet paid out daily P&L, which is typically in the range of 1-5 bps per day. It also makes flash loan attacks at the protocol economically impractical.

As USD+ grows in TVL, a management fee will be retained from USD+ yield on a daily basis.