Why Overlayer?

Most stablecoins are excellent settlement assets, but they are not designed to be natively productive on-chain for users. Overlayer does not try to replace stablecoins; it upgrades them.

Instead of embedding yield directly into the transferable asset, Overlayer separates the system into two layers:

1. Non-rebasing overlaid asset for settlement and composability.
2. Staked representation for yield participation.

This matters for three reasons:

• Settlement stays clean. The base overlaid asset does not rebase and behaves like a normal transferable token.
• Yield stays explicit. Users opt into yield by staking, meaning yield is not hidden inside every wallet balance.
• Risk boundaries are easier to reason about. The protocol isolates optional modules and external integrations from core accounting and redemption invariants.