We propose to allocate part of funds into in USD+ (apprx. 10%). USD+ is a yield generating stablecoin pegged to USDC. That would generate additional revenue (apprx 11%) at no additional risk.
Currently DAO Treasury funds are allocated in stablecoins and do not bring daily yield. We suggest allocating part of funds in conservative risk yield generating stablecoin pegged to USDC (which means it will be immediately converted 1:1).
USD+ is pegged to/instantly redeemable in USDC. It is 100+% backed by low-risk, highly liquid, yield-generating DeFi assets. USD+ airdrops yield to your wallet daily, no staking required. USD+ is your ‘go-to’ stablecoin, the stablecoin you go to when you are not invested nor yield-farming.One buys and holds USD+ in order to receive yield on its temporarily available stablecoin cash without exposing to risk nor sacrificing liquidity. The project recently received funding from reputable investors.
USD+ is converted into USDC on demand, which allows to hold the exchange ratio.We recently passed audit by Hacken (Audits - Hacken).
Historically, USD+ yield exceeded 10-11% APY. You can evaluate historical APY and risk distribution on Overnight.fi.
We suggest making a small pilot with us to evaluate benefits of our protocol: eg. 10% can be allocated and then the community could decide about keeping assets in USD+.
Benefits of USD+
Liquid. Pegged to USDC. Instantly redeemable.
Low-risk. Designed to minimize volatility, targeting no losses on a daily basis.
Asset-backed. 100% + collateralized with DeFi assets.
Yield generating. 1-5 bps airdropped daily profit
Decentralized. On-chain portfolio management. Voting on portfolio structure.
Transparent. Full disclosure of positions, transactions, M2M and liquidation values.
USD+ Portfolio strategy
The portfolio deployed by Overnight is constructed to minimize risk, maximize liquidity and currently includes:
- Cash positions in 3 mainstream stablecoins: USDC, DAI, USDT; potentially, MAI, mUSD, PUSD
- Stablecoin deposits, including AAVE, potentially, Poliquity, mStable, Mai Finance
- Stable-to-stable liquidity provision, including Curve’s tri-pool, potentially, stable-to-stable liquidity pools on Quickswap, Balancer etc.
If we invested Gnosis safe currently in USD+ (current amount is USDC 6mn), on average the protocol would earn USDC1 800 per day (11% APY). If 10% allocates (USDC 600 000), that would result in USD 180 daily extra revenue (or 1260 per week or apprx. 5000 per month).
We believe that would bring value to your system.
Several steps required to launch allocation of funds:
- Create new Gnosis safe on Polygon and allocate part of funds.
- Make a pilot allocation e.g. 10% of funds into USD+.
- Receive daily yield
Benefits of keeping funds in USD+
- brings daily yield
- low risk (conservative)
- immediate 1:1 conversion into USDC
- adding Polygon increases diversification
Depositing funds in USD+ requires opening new Gnosis safe on Polygon.