The received USDC is transferred to the
PortfolioManager, where the received assets are deposited to the specified strategies.
If necessary, the
PortfolioManagerwill 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
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 (
The fee in line with stable-to-stable conversion fees on most protocols is 0.04% and is applied to each trade. 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.