We propose the introduction of an 80/20 weighted gauge for $OVN on Optimism, Arbitrum, and Base with the pairing as OVN/wUSD+. This initiative aims to foster greater liquidity and facilitate smoother transactions for users on these platforms. By enabling this gauge, we anticipate enhancing the yield-generating opportunities for both the Balancer community and Overnight Finance users.
Overnight.fi is a protocol focusing on asset management, with a specialization in neutral-risk strategies. At the heart of its product line is USD+, which is a yield-driven stablecoin, fully backed by collateral. This collateral for USD+ is rooted in DeFi strategies that generate returns. These strategies encompass lending to platforms like Aave, and include both stablecoin-to-stablecoin and neutral-risk strategies.
USD+ by Overnight Finance
USD+ is a DeFi product that offers users the opportunity to invest in a diversified basket of stablecoins. The main goal of USD+ is to optimize yield generation by allocating funds across various yield-bearing protocols and platforms in the DeFi ecosystem. In essence, users deposit their stablecoins into the USD+ pool and receive interest-earning USD+ tokens in return.
wUSD+ is a type of wrapped token within the Overnight Finance ecosystem. In simple terms, it represents a stablecoin (like USD+) that has been “wrapped” to create a new token that can be used within the Overnight Finance platform and potentially other decentralized finance (DeFi) platforms. This wrapping process allows for more fluid and flexible utilization of the stablecoin in various financial strategies and products, facilitating smoother transactions and broader integration within the DeFi space. It essentially helps in enhancing the functionality and interoperability of the original stablecoin, USD+.
Currently, Overnight Finance operates on multiple chains including Base, Optimism, and Arbitrum, with a significant amount of total value locked (TVL) across various products:
USD+: $21,772,869.93 TVL (Operates on Base, Optimism, Arbitrum, and others)
DAI+: $9,020,297.94 TVL (Operates on Base, Optimism, Arbitrum)
USDT+: $472,694.69 TVL (Operates on Binance, Linea)
OVN by Overnight Finance
OVN is the native token of the Overnight Finance protocol. It serves two main purposes: to promote the use of USD+, a yield-bearing stablecoin developed by Overnight, and to facilitate decentralized risk management within the protocol. OVN holders can participate in governance decisions, helping to align community incentives and guide the protocol’s development. Additionally, OVN will be used in Insurance Vaults, where it can be staked to earn insurance premiums and potentially benefit from upward price pressure due to the protocol’s revenue mechanisms. The token has a fixed supply of 1,000,000, with a detailed distribution and vesting plan to ensure the maximization of its value over time.
The motivation behind introducing this pair on Balancer stems from a variety of strategic benefits that this integration would bring to both communities:
- Enhanced Liquidity: The introduction of the OVN/wUSD+ pair on Balancer would significantly enhance the liquidity of these assets, facilitating smoother transactions and potentially reducing slippage.
- Increased Yield Opportunities: By leveraging Balancer’s flexible and dynamic liquidity pools, users can explore new yield-generating opportunities, thereby maximizing their returns on investment.
- Community Engagement and Growth: This collaboration would foster greater community engagement, bringing together the vibrant communities of both Balancer and Overnight Finance, and potentially leading to innovative developments and partnerships in the future.
- Strategic Alignment: The integration aligns with Overnight Finance’s strategy of expanding its ecosystem and enhancing the utility and value proposition of the OVN and wUSD+ tokens. It also aligns with Balancer’s goal of fostering a diverse and robust DeFi ecosystem.
Furthermore, to stimulate liquidity and encourage participation, the OVN/wUSD+ pair will be incentivized on the three chains - Optimism, Arbitrum, and Base. This incentive mechanism is designed to attract more users to the platform and foster a vibrant and active community around the OVN ecosystem.
- Governance: Information on governance Overview - Overnight Finance Docs (Beta)
- Oracles: Does the protocol rely on external oracles? No
- Audits: Audits
Value: The pool is expected to generate trading volumes and fees for Balancer.The proposed OVN/wUSD+ pool aims to be a primary source of liquidity for both tokens, enhancing the stability and depth of the market on Balancer. We will also continuously incentivize the gauge to attract liquidity.
$OVN Bribing Plan
Total amount of bribes between all our pools:
per week: $20,000
per month: $80,000 - $90,000
We plan to distribute them depending on bribe effectiveness on various dexes.
The gauges each have 5% caps and would qualfiy as core pools due to their yield bearing component.
The Balancer Maxi LM Multisig
eth:0xc38c5f97B34E175FFd35407fc91a937300E33860 will interact with the GaugeAdderv4 at
0x5DbAd78818D4c8958EfF2d5b95b28385A22113Cd and call the addGauge function for each of the pools, passing their corresponding Root gauge for the gauge(address) in the table above, and gaugeType(string) corresponding to their respective network in the table.