Disclaimer: I’m posting this on behalf of the Overnight Finance team
This is a proposal to add USD+ as Spirit Force to Aavegotchi. The advantages of adding new collateral should be pretty clear:
- include more communities into the game,
- create a higher diversity of Aavegotchis.
Both are great for the Aavegotchi ecosystem.
- USD+ is a fully collateralized stablecoin pegged to USDC with the collateral being deployed across a portfolio of low-risk yield-farming strategies. Yield-farming strategies generate daily yield, which is passed over to USD+ holders daily, yields follow you wherever you go, straightforward it to your wallet, LP, or any other DeFi strategy… The collateralization with reputable stablecoins aspect allows USD+ to solidify its strong peg against USDC.
- The mechanism mentioned above makes USD+ highly capital efficient and has been generating 8–12% APY as of currently. Compare this with USDC, where holding it yields no profit payouts, and a user has to partake in the Yield-Farming part themselves
- Conversely, with USD+, all that hassle is reduced to something as simple as buying a token.
How USD+ works
Since the implementation would depend on different factors (amount of dev work, the launch of new haunts, etc.) I can’t give an exact timeline for this proposal. It would be great to include it in haunt 3, but this is ultimately up to the team.
The Overnight protocol strives to maintain itself as risk-averse and, in doing so, uses the following mechanisms.
- Only Secure Stablecoins are used: like USDC, USDT, DAI, and TUSD
- Funds are deployed on DEXes after a thorough due-diligence process — this involves analyzing the smart contracts.
- Strategies are tested on devstand to ensure that the yields are what they’re advertised as.
The Overnight Protocol is audited by Hacken, with more audits to continue as development is continued.
The team behind Overnight is fully doxxed and can be viewed on the website. The team has an extensive background involving institutions like Morgan Stanley, BCG, Google, etc.
We love the Aavegotchi Community and would love to hear your feedback.