PR with Payload
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.
Overnight Pulse is a boosted USDC-DAI pool that relies on USD+ for yield. In March 2022, following a positive vote on [BIP-208] [BIP-208] Enable Overnight Pulse Gauge [Arbitrum] Overnight Pulse was entered as a core pool, a gauge for Overnight Pulse pool on Arbitrum had been enabled. This is the request to re-enable the gauge, following the changes to its code-base.
Overnight Pulse has a successful history of driving volumes and TVL to Balancer’s ecosystem. Overnight pulse on Optimism, implemented via Beets.fi, reached 7M TVL and generated daily trading volumes in the range of 300-500K, peaking at 3.21M USD. The yield was consistently 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. Following the entry by Aura and implementation of cross-chain gauges, the bribing economics on Balancer Arbitrum has improved to a point where we expect it to be attractive to incentivize USD+ liquidity via bribing. Overnight has consistently been the top briber on various Solidly forks on Arbitrum, OP, BNB and zkSync. We now look to repeat the same approach on a more sustainable ve3,3 platform - Balancer/Aura. 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, Overnight has attracted up to 30M TVL on Arbitrum, in particular, via Chronos and Ramses Solidly implementations. With Aura’s entry to Arbitrum, the opportunity presents itself for Balancer to become an Overnight Pulse’s core liquidity platform on Arbitrum. 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:
- Governance: Information on governance Overview - Overnight Finance Docs (Beta)
- Oracles: Does the protocol rely on external oracles? No
- Audits: Provide links to audit reports and any relevant details about security practices.
- Market History:
Overnight Pulse on Beethoven Beethoven X | Overnight Pulse
Overnight Pulse on Balancer Arbitrum Balancer
- Value: The pool is expected to generate significant trading volumes and fees for Balancer. The yield generated by Overnight pulse is expected to generate significant sustainable incentives.
Link to Pool: ComposableStablePool | Address 0xA8af146d79aC0BB981E4e0d8b788Ec5711b1d5d0 | Arbiscan
Link to Gauges:
Specification
The Balancer Maxi LM Multisig eth:0xc38c5f97B34E175FFd35407fc91a937300E33860 will interact with the GaugeAdderv4 at 0x5DbAd78818D4c8958EfF2d5b95b28385A22113Cd and call the addGauge function with the following arguments:
gauge(address): 0x175FAb9C7aB502B9E76E7fca0C9Da618387EBAdA
gaugeType(string): Arbitrum