Noon (Noon Capital)

Noon is a yield-bearing stablecoin protocol featuring USN (a USD-pegged stablecoin) and sUSN (its yield-bearing staked version). It targets users seeking a stable store of value that also generates returns via institutional-grade, delta-neutral trading strategies managed by the protocol and governed by the community.

How Noon generates yield

When people mint the stablecoin USN, they deposit collateral (crypto assets). Noon takes that collateral and spreads it across a mix of strategies that aim to earn steady returns while staying "delta-neutral" (meaning the strategy tries to avoid betting on whether prices go up or down).

The initial set of strategies included:

• Cash-and-carry arbitrage — buying an asset like Bitcoin while simultaneously selling it in the futures market. This lets the protocol earn the fees that perpetual futures traders pay each other (called funding rates).
• Tokenised US Treasury Bills — short-term US government debt, accessed through on-chain protocols.

Later, through community voting on the Noon forum, more strategies were added:

• Collateralised Loan Obligations (a packaged pool of business loans, via Janus Henderson's JAAA fund)
• Private Credit Funds (lending to fintech companies, via Fasanara's fund)
• DeFi lending on well-known lending platforms like Euler and Morpho, using low-risk lending pools
• Principal Tokens on Pendle (a way to lock in a fixed return)
• Looping strategies (borrowing against yield-bearing assets to increase exposure)

Every quarter, the protocol rebalances — it moves money between these strategies based on past returns, how jumpy the markets are, current conditions, and technical signals.

How returns are shared

Returns are calculated and split every day:

• 80% of the daily gross returns go to sUSN holders (the staked version of USN). The yield is collected in USDT or USDC, then used to mint fresh USN directly into the staking contract. This makes each sUSN token grow more valuable compared to USN over time.
• 10% goes to the Noon Insurance Fund. After a 6-month waiting period, this fund buys back $NOON tokens and gives them to sNOON holders.
• 10% goes to the Noon Operations Fund to cover running costs. If there's anything left over, it flows into the Insurance Fund.

The sUSN APY (annual percentage yield) is calculated by taking the net daily return, dividing it by the total USN supply from the day before, compounding that daily, then adjusting upward based on the ratio of total USN to staked USN.

Fees and token holder trade-offs

Noon charges zero protocol fees on any dapp activity — users only pay standard gas fees.

• USN holders (unstaked) do not earn the raw yield. Instead, they get a bigger share of governance token ($NOON) rewards.
• sUSN holders (staked) get most of the raw yield plus a smaller amount of governance rewards.

According to Noon's official documentation (Tokenomics page), the project currently has no external investors or backers. The token allocation explicitly states "0 $NOON tokens allocated" to investors and early LPs. The documentation further states: "Noon is self-funded, and has no plans to take on external investment at this time." The protocol grew its TVL organically without preferential deals with early LPs.