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. Our token has a cross-chain functionality with the help of Axelar.
Launch Price: $20
Presale Price: $20
OVN Tokenomics: Overnight Tokenomics ($OVN)
Presale Information: Overnight Presale Information
25% of OVN from Private Presale unlocked on Oct 2. and the remaining 75 will be linearly vested for 4 weeks.
We cancelled public presale and just used the money raised from private presale to bootstrap liquidity on DEXes.
We have launched at 20m FDV.
We are already live on Aerodrome and Velodrome Finance. We also incentivized huge amount of bribes on Aerodrome (7400$) and Velodrome ($5,700) (For Sept. 28 - Oct. 5)
We have also provided 22.5k OP for our Beefy Boost Program that will be distributed in over 2 weeks.
The rate providers was also reviewed by the integrations team and deemed safe.
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.
We aim to create a competitive environment that rewards participation and ensures the most efficient allocation of resources. We believe that veBAL voters are sophisticated and discerning and they will prioritize the community’s best interest. Complexity is often a byproduct of innovation. Our past experiences teach us valuable lessons, enabling us to build more robust systems.
While 80/20 pools have been associated with locking, the beauty of the DeFi space is its adaptability. Our objective is to leverage the pool structure for its inherent benefits, not merely conform to traditional use-cases. The goal is to amplify liquidity and ensure stability, rather than exploit emissions. We’re using the pool to its fullest potential to cater to the evolving needs of the market. As also noted, the proposed bribe per week represents a significant boost in Aura’s bribe market, should all bribes be channeled in here.
The absence of a defined market cap or trading history doesn’t undermine the intrinsic value of the coin or its future adoption potential. The proposed gauge allocation, especially the 2% caps, is informed by a forward-looking strategy, ensuring that it aligns with the expected bribes and accrued yield.
The gauge allocation is in recognition of the potential this new coin brings. Traditional metrics, like trading history, might not fully capture the inherent value and projected adoption. We’re operating in a rapidly evolving landscape; hence, a forward-looking approach is crucial. Coingecko’s preview status doesn’t reflect the groundwork and strategic partnerships that underscore this project.
The proposal aims to push the boundaries, capitalize on new opportunities, and ensure the best outcome for the community. We trust the veBAL voters to recognize the merit and long-term vision of this initiative.
- 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.
We already distributed some of our OP grants via Beefy Boost Program and Velodrome. If approved we can do similar incentives on Balancer too.
Child gauge: 0x70535841c362F83B4e1425066bfBA9BF87e1b984
Root gauge: 0x0a2738a1EeADA91DA6D5375a2E6f620c85C287f3
Child gauge: 0x972539e9d340a915775c004715f286a166f067fd
Root gauge: 0x99e2fAfD901645FB611F6D56476AF8Ad25263ea5
The gauges each have 2% 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.