‘Overnight’ stands for overnight interest rate, the interest rate one receives by lending money for the shortest duration possible - 1 night.
- 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
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
- 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.