Overnight Finance

Rejected venues wait the longest for re-review; a rejection has to earn another look before the scheduled date.

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 $100M materiality floor. One practice advising 100 households moves $1M to $8M into a venue on the same research, and below $100M TVL that book becomes the exit crush. The file is rejected on size, whatever the strategy’s quality.

Kill criteria: the events that revoke this verdict
• TVL sustained above $100M for 30 days
• The delta-neutral strategy publishes position-level disclosure sufficient to underwrite the basis exposure

The research file

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 exposure even when delta is hedged. The measured collateral remains below the shared version-1 materiality threshold.

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 the current nonzero survey perimeter.

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 valuation. USD+ can experience a negative rebase when collateral value falls below supply. Mint and redeem calls route through Exchange contracts, and realized 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 $100M floor. A $1M to $8M advised book would still be material to the entire portfolio before a Blast or strategy exit is stressed. Reopen after reconciled TVL remains above $100M for 30 consecutive days, then underwrite every strategy, position-level basis and gamma exposure, governance and bot controls, incidents, legal access, proposed-size redemptions and named simpler alternatives.

Sources

The claims above trace to these. Where a number could not be independently verified, the thesis says so.

• 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

Inherited controls

The verdict above grades the protocol layer. Every position also inherits the asset it holds and the chain it settles on. The least safe layer sets the position’s grade, and the position table names which one that is.