# OVN Staking

OVN staking allows OVN holders to earn passive rewards while supporting the Overnight ecosystem.

### **What is OVN Staking?**

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OVN staking introduces a yield-generating mechanism built on our proven and audited USD+ technology. Users who hold OVN tokens can stake them on the Overnight platform to receive (mint) OVN+ tokens at a 1:1 ratio. The system features:

* Zero minting fees when staking OVN
* Instant redemption available with a 2.5% fee
* Rewards for OVN+ holders are automatically added to their OVN+ balances daily via the rebase mechanism developed for Overnight Tokens+ (i.e., USD+)

### **How Does It Work?**

#### Yield Generation & Distribution

OVN+ holders earn yield from skims collected on USD+ pools on Base. Here's how it works:&#x20;

* 20% of daily skims from USD+ pools on Base are allocated to OVN stakers ([Dune Analytics](https://dune.com/overnightfi/overnight-skims) data on all USD+ pools and skims)&#x20;
* These funds are used for market buybacks of OVN, which is then converted to OVN+.&#x20;
* Additional OVN+ is distributed to stakers' balances daily through rebases.

#### Collateralization

* Every OVN+ token is fully backed by staked OVN
* Additional OVN accumulated through buybacks ensures the total OVN collateral always equals or exceeds OVN+ in circulation
* OVN+ rebases occur when accumulated OVN exceeds the required backing

### Monitoring Stats

Track OVN+ staking performance through [Stats page](https://app.overnight.fi/market/ovn), which displays OVN+ TVL, Daily APY and payouts history.