Summary:
Overnight.fi is an asset management protocol specializing in delta-neutral strategies. Overnight’s core product is USD+, a 100% collaterized yield-bearing stablecoin. The collateral of USD+ consists of yield-generating DeFi strategies, including lending to Aave, stable-to-stable and delta-neutral strategies.
Approximately 3 months ago, following a grant by Balancer, Overnight established Overnight Pulse pool on Beet.fi on Optimism. Overnight Pulse is a boosted USDC-DAI pool that relies on USD+ for yield. The pool has reached 7M TVL and generated daily trading volumes in the range of 300-500K, on the day of writing this proposal the volume was 3.21M USD. The yield has been consistent in the range of 12-14% APR, of which just 2-3% came from rewards, with the rest generated by USD+
Overnight.fi has expanded to Arbitrum and looks to repeat the Overnight Pulse on Balancer Arbitrum. We are proposing the pool to enter as a “core pool” under BIP-19. This means protocol fees earned by this pool and a portion of the yield would be used to bribe for votes on it. Consequently, this pool will also receive bribes from those fees in proportion to this pool’s TVL relative to other Arbitrum core pool TVL
References/Useful links:
Link to:
• overnight.fi
• Documentation
• Github Page
• Communities
Protocol Description:
Overnight.fi is an asset management protocol specializing in delta-neutral strategies. Overnight’s core product is USD+, a 100% collaterized yield-bearing stablecoin. The collateral of USD+ consists of yield-generating DeFi strategies, including lending to Aave, stable-to-stable and delta-neutral strategies.
Motivation:
Balancer has clearly been pursuing yield bearing liquidity for quite some time. Overnight Pulse has attracted both strong TVL and stablecoin trading volumes on Beethoven OP. With Overnight’s expansion to Arbitrum the opportunity presents itself for Balancer to repeat the success of Overnight Pulse on OP on another chain. This is net positive for the protocol.
Explain why this pool needs incentivization
The boost generated by USD+ is attractive enough for the pool’s TVL to be sustainable. Incentives are required for the pool to grow to a level where USD+ yield represents the majority of the pool’s APR.
Specifications:
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Governance: Information on governance https://docs.overnight.fi/tokenomics-and-governance/overview
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Oracles: Does the protocol rely on external oracles? No
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Audits: Provide links to audit reports and any relevant details about security practices.
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Market History: Overnight Pulse on Beethoven Beethoven X | Overnight Pulse
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Value: The pool is expected to generate significant trading volumes and fees for Balancer in with Overnight Pulse on OP.
Gauge 0x5A7f39435fD9c381e4932fa2047C9a5136A5E3E7
ComposableStablePool: 0x519cCe718FCD11AC09194CFf4517F12D263BE067
ERC4626LinearPool: USDC/wUSD+: 0x284EB68520C8fA83361C1A3a5910aEC7f873C18b
ERC4626LinearPool: DAI/wDAI+: 0x117a3d474976274B37B7b94aF5DcAde5c90C6e85
Specification
The DAO Multisig 0x10A19e7eE7d7F8a52822f6817de8ea18204F2e4f will interact with the AuthorizerAdaptor at 0x8F42aDBbA1B16EaAE3BB5754915E0D06059aDd75 and call performAction with the GaugeController at 0xC128468b7Ce63eA702C1f104D55A2566b13D3ABD for the target(address) argument and using 0x3a04f900 followed by the gauge address 0x5A7f39435fD9c381e4932fa2047C9a5136A5E3E7 and the corresponding gauge type for the data(bytes) argument.
data(bytes) : 0x3a04f9000000000000000000000000005a7f39435fd9c381e4932fa2047c9a5136a5e3e70000000000000000000000000000000000000000000000000000000000000004
