So in today's article we're going to look at Overnight Finance, which is a yield aggregator that I've been looking at, and they also have their own airdrop incentive. So we're going to dive straight into these projects and to see how we can position ourselves for the airdrop. Whoop! Okay, we look at Overnight.
I talked about Overnight Finance in the Stream last week. They're essentially a yield aggregator, just like BF Finance, just like all of the other yield aggregators that you've played around with, offering you APR as well as APY rewards for depositing liquidity into their protocols. To get straight to the point, the most important asset here is USD Plus. USD Plus is fully collateralized by USDC. As long as their collateral value is over 100%, you will be earning rewards in USD Plus through a rebase mechanism. For example, if you hold 1,000 USD Plus on Arbitrum, you're going to be getting 2.72% APY daily through a rebase mechanism. But that is only if the collateral value is higher than the asset itself. The most important dashboard you need to look at is here. This shows you where all the collaterals are held that are backing USD Plus. It's very important that you have this to see what's going on.
How you participate in the airdrop for Overnight is just by minting USD Plus on Arbitrum. This is their recent referral program that they're doing. They want to push Overnight Finance more out to users. The only way that you can participate in this airdrop, should you choose to participate, is to have USD Plus on Arbitrum. I've asked around. 'Will you still be able to earn points by depositing your USD Plus on liquidity pools?' They said yes. As long as your USD Plus is on Arbitrum, you'll be getting points. I'll put the referral link down in the description if you want to participate in this, but you don't need to participate in the airdrop to benefit from Overnight Finance because there's a lot of different pools that you can choose from. Here, there's many different chains. Base is their biggest market right now. But yeah, if you go to the pools, okay, there's a lot to talk about. And you can scroll down, you can see open hidden pools. The rewards that you're earning if you're going to be LPing on Overnight Finance is the DeFi token of that platform. So if you've chosen this one, you're going to earn Aerodrome tokens. If you LP here on Linea, you're earning Linez tokens. Curve, you're earning Curve tokens.
In terms of UI, if you chose V3, you can look at your position here, 'My position.' So anything that is not V3, so V2 basically, you won't see it here, you'll need to redirect to the DeFi platform itself. So for people who don't know what V3 is, it's just the version for the liquidity pool. So it's based on the Uniswap V3-V2 model, basically. So V2, you'll need to go to Curve, or whatever DeFi platform it is. So this is the one I chose. I need to go to Curve in order to see my position. The TLDR to earn money in Overnight Finance is: you need to hold USD Plus on any chain of your choosing. But if you want to get the OVN airdrop, you go for minting USD Plus on Arbitrum and activate your account here on the referral program. Then, if you want to take it a step further, apart from just holding USD Plus, you'll need to use it in DeFi, which is the liquidity pools here. So please do your own research before choosing a liquidity pool because there's not just impermanent risk, but there's also smart contract risk. Do not invest more than what you can afford to lose.
Q: How can I position myself for the airdrop in Overnight Finance?
A: To position yourself for the airdrop in Overnight Finance, you can participate by minting USD Plus on Arbitrum. This will enable you to be eligible for the airdrop.
Q: What is the most important asset in USD Plus and how is it collateralized?
A: The most important asset in USD Plus is fully collateralized by USDC. As long as the collateral value is over 100%, users can earn rewards in USD Plus through a rebase mechanism.
Q: How can I participate in the Overnight Airdrop and Referral Program?
A: To participate in the airdrop for Overnight, you need to mint USD Plus on Arbitrum. Additionally, Overnight is running a referral program where users can earn points by depositing USD Plus in liquidity pools on Arbitrum.
Q: What are some investment strategies and user interface options in Overnight Finance?
A: To earn money in Overnight Finance, you need to hold USD Plus on any chain of your choosing. However, to be eligible for the OVN airdrop, mint USD Plus on Arbitrum and activate your account in the referral program. It is advisable to also use USD Plus in DeFi liquidity pools. Remember to do thorough research before investing.
