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 Steady Accord is the new implementation of Overnight Pulse, a boosted USDC-DAI pool that relies on USD+ for yield. In March 2023, following a positive vote on [BIP-208] [BIP-208] Enable Overnight Pulse Gauge [Optimism] Overnight Pulse was entered as a core pool, a gauge for Overnight Pulse pool on Optimism 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+.
Following the entry by Aura and implementation of cross-chain gauges, the bribing economics on Beets OP 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 Beets core pool TVL
References/Useful links:
• 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 and Beets have 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 OP, the opportunity presents itself for Balancer to become an Overnight’s core liquidity platform on Optimism. 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. Incentives received by Overnight as part of OP grant would be used partially to boostrap the pool, by bribing via Aura
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 Beets/Balancer. The yield generated by Overnight pulse is expected to generate significant sustainable incentives.
Link to the pool Beethoven X | Overnight Steady Accord
Link to the gauge Contract Address 0x74aa3d1d937452e1611ce378feaca3c506943dc9 | OP Mainnet
Root gauge on the mainnet: 0xd2BE9C60E0D91353842a267361D4b0c20c3bFD5B
Transaction 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): 0xd2BE9C60E0D91353842a267361D4b0c20c3bFD5B
gaugeType(string): Optimism
Thank you very much!