Author: Scream, Core Member and Community Lead on Overnight Finance
Background:
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.
References/Useful links:
Website: https://overnight.fi
Twitter: https://twitter.com/overnight_fi
Discord: USD+ ┃Overnight Finance
Docs: https://docs.overnight.fi
Defillama: https://defillama.com/protocol/overnight-finance
Motivation:
We propose the addition of an USD+/FraxBP liquidity pool to the FXS gauge controller. This integration will aim to leverage the popularity and stability of both USD+ and FraxBP tokens, potentially enhancing liquidity, stability, and overall engagement in the Frax ecosystem.
- Increased Liquidity: The introduction of an Overnight Finance USD+/FraxBP pool can attract more liquidity providers, hence making the Frax ecosystem more robust.
- Diversification: A diversified set of assets and partnerships, such as with Overnight Finance, strengthens the resilience of the Frax ecosystem against market downturns.
- Alignment with Frax’s Vision: By supporting stable assets like USD+ and FraxBP, Frax reiterates its commitment to stability and decentralization.
- Incentivizing Holders: The addition of this pool to the FXS gauge controller can incentivize holders with additional FXS rewards, thus encouraging longer-term holding and engagement.
Specifications (Arbitrum):
Curve Pool Address: [0xb34a7d1444a707349bc7b981b7f2e1f20f81f013]
USD+ Token: [0xe80772Eaf6e2E18B651F160Bc9158b2A5caFCA65]
Curve Gauge: [0x4645e6476d3a5595be9efd39426cc10586a8393d]
Voting:
- For: Add USD+/FraxBP curve pool on Arbitrum to FXS gauge controller
- Against: Do nothing
Conclusion:
The strategic addition of an Overnight Finance USD+/FraxBP pool to the FXS gauge controller isn’t just a mere expansion of our liquidity pool options, but a demonstration of the Frax ecosystem’s commitment to embracing and cultivating collaborations that bring value to our community. This partnership with Overnight Finance showcases our endeavor to continually innovate and adapt in the dynamic DeFi landscape. Beyond just liquidity, this integration can serve as a gateway to a broader network of DeFi participants and opportunities. It stands as testament to the fact that as the DeFi ecosystem evolves, so too must our strategies, partnerships, and offerings. The Frax ecosystem’s adaptability and responsiveness to change is, after all, one of its core strengths.
The proposed addition can be a strategic move to expand and diversify the Frax Finance ecosystem. We urge the community to consider the benefits and potential risks and to share their thoughts and feedback on this proposal.
As we progress with this proposal, let’s remind ourselves of our vision for the Frax ecosystem: to be a beacon of stability, innovation, and growth in the DeFi space. By fostering partnerships like the one proposed with Overnight Finance. We look forward to the community’s thoughts on this proposal and hope for a collaborative decision-making process.