Overnight means the overnight interest rate, the interest rate that a person receives by borrowing money for the shortest possible time - 1 night.
What is Overnight for?
Overnight — the DeFi protocol behind USD+, a revenue-generating stablecoin with daily payouts. The goal of USD+ - to simplify and facilitate the management of money in stablecoins. Someone buys and holds USD+ to earn interest on temporarily available cash (also known as "parking").
USD token:
| 1 | it is a USDC-pegged stablecoin, 100% backed by income-producing DeFI assets. |
| 2 | the DeFi equivalent of a money market fund with a very conservative and liquid [DeFi] portfolio, giving 1-5 basis points returns. |
| 3 | a completely decentralized protocol that performs all its activities entirely on the network with an unprecedented level of information disclosure and transparency. |
There are many ways to manage cash in a stablecoin, but with USD+ you can avoid in-depth market research and active trading. With USD+, all that hassle comes down to something as simple as buying a token. In other words, stablecoin cash management is risky, burdensome and expensive, and USD+ addresses these issues for 3 different stakeholder groups - investors, the crypto community and AMM.
Users can receive OVN in exchange for USDC and other major stablecoins. The protocol will mint 1 OVN for each received USDC (or equivalent) and burn 1 for each withdrawn USDC. The resulting assets are stored in the protocol vault as collateral.
DeFi smart contract
Stablecoins, received from USD+ holders, go into the Vault. When USD+ is redeemed, the respective assets from the vault come back to the holder. The USD+ portfolio manager on-chain contract allocates assets from the vault, in accordance with the investment strategy. In such cases, tokens, obtained from lending and AMM protocols, for example, amUSDC and CRV are also stored in the vault. The repository address is public. The availability of assets can be checked independently at any given time. Only exchange contracts (minting and redemption) and portfolio management can deposit and withdraw assets from the vault.