Overnight FinanceMicro-cap

Overnight Finance receives a B- risk grade (28/100) from Hindenrank, where lower scores indicate lower risk. Moderate risk — straightforward yield aggregation with clean track record, balanced against multi-protocol dependency and rebasing composability challenges. Overnight Finance issues USD+, a yield-bearing stablecoin pegged 1:1 to USDC that generates returns by deploying collateral across DeFi lending protocols. With $18M TVL, its B grade reflects the straightforward yield aggregation model and clean track record, offset by dependency on multiple underlying DeFi protocols for yield generation.

The key risks identified for Overnight Finance are: (1) USD+ generates yield by deploying your USDC into multiple DeFi protocols. If any of these underlying protocols suffers a hack or exploit, the USDC backing your USD+ could be partially lost. (2) USD+ uses a rebasing mechanism where your token balance increases daily. Some DeFi protocols don't properly handle rebasing tokens, which could cause issues if you deposit USD+ into incompatible platforms. (3) USD+ is pegged to USDC. If USDC itself loses its peg (as briefly happened in March 2023), USD+ would be affected as well.

Overnight Finance scores 28/100 across eight risk dimensions: Mechanism Novelty: 3/15, Interaction Severity: 5/20, Oracle Surface: 2/10, Documentation Gaps: 4/10, Track Record: 3/15, Scale Exposure: 3/10, Regulatory Risk: 4/10, Vitality Risk: 4/10. The highest risk area is Documentation Gaps at 4/10.

Among 116 rated Yield protocols on Hindenrank, Overnight Finance ranks #19 by safety (lowest risk score = safest). Its 28/100 risk score and B- grade place it among the safer Yield protocols.

Overnight Finance scores 3/15 on the Track Record risk dimension, indicating some history of security incidents or exploits. Higher scores reflect more severe or frequent incidents. Review the full risk report for details.