Overnight (“OVN”) is launching on Polygon, dramatically simplifying stablecoin cash management
Overnight’s interest-bearing stablecoin OVN will launch on Polygon commitchain and offer users the simplest way to receive interest on its temporarily available [stablecoin] cash (also known as ‘parking’).
Overnight (“OVN”) is the first interest bearing stablecoin, native of Polygon PoS commitchain. Its purpose is to simplify and facilitate stablecoin cash management.
The problem of spare stablecoin cash liquidity is relevant for over 3 M people holding ±90 Bln USD. There are 130 Bln USD of stablecoins outstanding and only ±40 Bln is generating yield (invested in DeFi protocols). 90 Bln USD of stablecoin cash is idle in wallets, mostly at centralised exchanges, and not generating any yield.
Centralized exchanges, like Binance, offer stablecoin deposits to stablecoin holders, but those (1) pay very low APY – 0,5-1,2% and (2) there is regulatory pressure against this product (e.g. Coinbase recently had to abandon plans to offer such deposits).
Another viable alternative is DeFi yield-farming, which can be more lucrative, however, too risky, costly and time-consuming for most of their target audience. Overnight (‘OVN’) is meant to solve this problem – provide stablecoin holders with meaningful return (and minimum risk/maximum liquidity) on her temporarily available stablecoin cash with minimum effort.
One can buy and sell 1 OVN for 1 USDC at any point in time and receive base APY currently in the range of 10-16% pa paid out daily, while holding it in his or her wallet.
Therefore OVN token is just like USDC, but much better:
- OVN is pegged to USDC 1:1 and can be instantly exchanged against USDC at this rate
- At any point in time OVN is no less than 100% collateralised with a highly conservative portfolio of yield-generating DeFI assets
- OVN receives profit from the underlying portfolio and distributes it daily among OVN holders as airdrops, no staking required
- OVN’s portfolio management is fully decentralized, i.e. performed by the auditable onchain protocol, with unparalleled level of disclosure and transparency
Daily profit airdrop is enabled by Polygon PoS commitchain. It is really central to the entire concept of OVN – it enables the peg (avoids appreciation above par) and represents key improvement for users who look to reduce the hassle associated with cash management in DeFi to something as simple as buying and keeping OVN token.
There are many ways one could manage its stablecoin cash, but with OVN one avoids (1) in-depth market research and active trading, (2) across numerous DeFi protocols, (3) daily and manually. In other words, currently managing stablecoin cash is risky, cumbersome and costly and OVN solves these problems for yield farmers, cryptocurrency investors and well funded blockchain projects.
Polygon is the leading platform for Ethereum scaling and infrastructure development. Its growing suite of products offers developers easy access to all major scaling and infrastructure solutions: L2 solutions (ZK Rollups and Optimistic Rollups), sidechains, hybrid solutions, stand-alone and enterprise chains, data availability solutions, and more. Polygon’s scaling solutions have seen widespread adoption with 700+ applications hosted, ~600M total transactions processed, ~60M unique user addresses, and $5B+ in assets secured.
If you’re an Ethereum Developer, you’re already a Polygon developer! Leverage Polygon’s fast and secure txns for your Dapp, get started here.
Overnight (‘OVN’) is the cash management solution, packaged as an interest bearing stablecoin – “OVN”. OVN is like USDC but better: OVN can be redeemed for 1 USDC instantly at any point in time, but (c) OVN aidrops interest to your wallet daily, no staking required.