Overnight USDC+
Crypto Overview
Overview
Overnight USDC+ is a yield-generating token built on the Optimism network that aims to provide users with exposure to real-world yield through overnight secured lending. The protocol converts USDC deposits into USDC+ tokens which automatically accrue yield from secured lending operations.
Purpose and Utility
The primary purpose of USDC+ is to generate yield through overnight secured lending to institutional borrowers. The protocol claims to facilitate secured lending operations where loans are overcollateralized with traditional financial assets.
Business Model Evaluation
The core business model revolves around lending, which in Islamic finance is only permissible when done as an act of charity rather than for profit. The protocol explicitly operates to generate yield through lending activities, which constitutes riba (interest).
Platform Activity
The protocol has attracted significant deposits and maintains active lending operations with institutional borrowers. The development team regularly updates the protocol and maintains transparency about lending activities and yield generation.
Token Distribution
USDC+ tokens are minted when users deposit USDC and burned when they withdraw. There is no pre-mine or team allocation, as tokens represent 1:1 backed deposits plus accrued yield.
Crypto Impact
To assign a comfort level investing in Overnight USDC+ from a halal perspective we need to determine whether it has a net positive or negative impact.
Towards this end, the table below is used to tally all the positive and negative considerations our members can think of related to Overnight USDC+.
If you don’t see something that should be listed, positive or negative, feel free to submit your own contribution using the button “Contribute”.
We will review your contribution for accuracy before publication.
Importantly, you can review listed contributions and vote on which one you think has the greatest impact, positive or negative.
You only have one vote per asset so use it wisely.
You can change your vote if you change your mind.