Archived memo. Archived 2026-10-16: Overnight Finance wound down. DefiLlama marks the protocol dead from 2026-09-01 and reports zero TVL on every chain, and its docs now lead with instructions to withdraw funds and a deprecation page. The yield feed dropped it. No active record replaces this one; the class rejection stood until the protocol ended. This page keeps the last verdict Ketju issued, and Ketju does not count it in current coverage. Ketju quotes this memo exactly as it issued it on 2026-08-16, so it keeps words Ketju has since retired, such as Rejected, which Ketju now calls Not approved.

Trading-strategy yield

Overnight Finance

Not approved Below the size limit for a full review

Verdict

Not approved

Below the size limit for a full review

Who can freeze it

Mixed control

Withdrawals

Reviewed

2026-08-16 · next 2026-11-15

Below the size limit for a full review

Summary

Overnight Finance is an asset management protocol that sells passive stablecoin yield products backed by lending, stable-pool and delta-neutral strategies. At the 2026-08-16 survey it held about $9.97M across Blast, Base, Arbitrum and a negligible Linea balance, under ten percent of our size floor. One practice advising 100 households moves $1M to $8M into a venue on the same research, and at this size that book becomes the exit crush. We do not open an individual review until the protocol clears the size floor, whatever the strategy’s quality.

Review triggers

TVL sustained above the retired TVL threshold for 30 days
The delta-neutral strategy publishes position-level disclosure sufficient to underwrite the basis exposure

Ketju checks this memo every night and opens a review if its venues or files show a warning or a cited document changes. The first confirmation is due 2026-11-15.

Changes

2026-10-16

Overnight Finance wound down. DefiLlama marks the protocol dead from 2026-09-01 and reports zero TVL on every chain, and its docs now lead with instructions to withdraw funds and a deprecation page. The yield feed dropped it. No active record replaces this one; the class rejection stood until the protocol ended. The prior memo

Research

Mechanism applicability

Overnight issues rebasing USD+, USDT+ and related tokens against portfolios of DeFi strategies. The strategy charter includes lending deposits, stable-to-stable pools and delta-neutral exchange-traded strategies; ETS positions borrow a volatile asset against collateral and pair it with stablecoin liquidity, leaving gamma and rebalancing risk even when delta is hedged. The measured collateral remains below the shared version-1 size floor, so we do not open an individual review.

Current observation and perimeter

The DefiLlama protocol API read on 2026-08-16 classified Overnight Finance as CDP and reported approximately $9.97M: about $9.12M on Blast, $0.48M on Base, $0.37M on Arbitrum and a negligible Linea balance. Current Overnight contract documentation lists deployments across those and additional networks with zero measured balances. The registry corrects the stale Base-and-Arbitrum-only description to cover the current networks with nonzero balances in the survey.

Control and exit applicability

PortfolioManager-controlled strategies can stake, unstake and claim rewards within the published charter; holders depend on those controls, external lending and AMM venues, oracles, bots and collateral values. USD+ can experience a negative rebase when collateral value falls below supply. Mint and redeem calls pass through Exchange contracts, and actual redemption depends on liquidation value and available strategy liquidity rather than the displayed net asset value alone.

Why the class rule decides

The increase from roughly $1.1M to $9.97M and the Blast concentration are meaningful, but the system remains one tenth of the size floor. A $1M to $8M advised book would still be material to the entire portfolio before a Blast or strategy exit is stressed. We do not open an individual review until the protocol clears the size floor. Reopen after reconciled TVL remains above the size floor for 30 consecutive days, then review every strategy, position-level basis and gamma risk, governance and bot controls, incidents, legal access, proposed-size redemptions and named simpler alternatives.

Sources

Each claim above comes from one of these sources. Where Ketju could not verify a number, the memo states that.

Overnight — current protocol and token overview · primary · accessed 2026-08-16
Supports: USD+, yield tokens, neutral-risk strategies, collateral, current lifecycle
Overnight — strategy charter and controls · primary · accessed 2026-08-16
Supports: lending, stable pools, ETS, PortfolioManager, liquidation value, redemption notice
Overnight — ETS basis and gamma exposure · primary · accessed 2026-08-16
Supports: delta neutral, borrowed volatile asset, AMM liquidity, impermanent loss, gamma exposure, rebalancing
Overnight — contracts and chain deployments · primary · accessed 2026-08-16
Supports: Blast, Base, Arbitrum, Linea, Exchange, PortfolioManager
DefiLlama — Overnight Finance survey record · secondary · accessed 2026-08-16
Supports: current TVL, Blast, Base, Arbitrum, Linea, CDP category

The asset and the chain

This memo covers the protocol. A position also holds an asset and settles on a chain. Whichever of the three holds the most power over the position decides who can freeze it. These tables describe control and do not judge quality.

Chain	Verdict	Freeze	What it can do
Base	Approved with limits	Mixed control	Coinbase, one regulated US company, operates the only sequencer, and admin keys can upgrade bridge contracts within about 7 days.
Arbitrum One	Approved with limits	Mixed control	a single sequencer orders more than 99% of transactions, and admin keys can upgrade bridge contracts on a timelock of about 7 days.

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