Leveraged USD+ yield
USD+ looks to minimize protocol risks, sometimes at the expense of the financial risks. Thus, we would prefer proven protocols with low risk (e.g. Aave, Balancer, Uni V3 etc.) with lower yields over new protocols, or forks of proven protocols by unknown teams. The philosophy being that protocol risk is a black-swan type of event that cant be hedged, nor insured, not diversified away from.
As established protocols tend to generate relatively low yields, USD+ relies on delta-neutral strategies (ETSes) to generate attractive yield for its holders. ETSes can be low, medium or high risk, meaning that sometimes there are days when ETSes, by design, generate a loss. These losses are relatively small, can be partially diversified away and partially insured.
Overnight insurance is a structured DeFi product enabling users to obtain high yields by providing insurance for USD+. Insurance providers earn premiums and yield from the investment of insurance reserves (mostly, into narrow range ETSes) in case of positive rebase by USD+. Premiums are retained from the daily yield of USD+. However, in case of negative rebase, the insurance fund capital serves to compensate the negative rebase and  BPS of yield in addition.
Please be aware of risks related to insurance - there is a min 3 day lockup period for the funds provided, no compensation will be provided in case of losses from insurance. This insurance product covers only USD+, and to no other Overnight product.
Currently, the insurance reserves are made of cash and ETSes. As OVN token is emitted, a part of the reserves can be allocated to OVN pools, attracting incentives from Overnight protocol. Also, following OVN TGE, an option to redeem insurance faster in OVN token, can be added.