Noon Capital is a Web3 protocol focused on yield-generating stablecoins and diversified deployment strategies. It offers a range of investment options, including stablecoins, staked tokens, and structured credit, with an emphasis on transparency, risk management, and controlled returns. ^[1]

Overview

Noon is structured as a yield-generating stablecoin system focused on producing returns through delta-neutral strategies and allocating most of that value back to users. It operates through a dual-token setup: USN, a dollar-pegged stablecoin, and sUSN, which users receive when they stake USN and which appreciates as returns accumulate. A separate governance token, NOON, can be staked to obtain sNOON, which grants governance participation and access to specific protocol distributions. Users can mint or trade USN and sUSN, and eventually acquire and stake NOON once it becomes available.

Yield generated by Noon's strategies is distributed primarily to sUSN holders, while smaller portions support the protocol’s Insurance and Operations Funds; excess operational funds are later used to reinforce the Insurance Fund. Each token plays a separate role: USN holders receive more governance token incentives, sUSN holders receive most of the yield, and sNOON holders participate in governance and receive unused insurance allocations. Noon also maintains a points system in which balances and activity generate points that convert to NOON after the token launch, with optional staking periods offering boosted rewards. ^{[2] [3]}

Features

Deployment Strategies

Noon uses a set of deployment strategies designed to generate stable, market-neutral returns, beginning with two core approaches: funding-rate arbitrage and tokenized Treasury bills. The first involves taking offsetting long and short positions in liquid cryptocurrencies to earn funding-rate differentials. In contrast, the second allocates capital into on-chain representations of short-term U.S. Treasuries to capture traditional interest rates. Over time, the protocol has expanded this basket through governance, adding collateralized loan obligations via institutional credit products, private-credit funds focused on short-duration lending, allocations to established DeFi lending protocols, and fixed-return opportunities through principal tokens on Pendle.

Some strategies reviewed by the community have been rejected, such as business development companies, which were voted down due to higher volatility. The protocol continues to evaluate additional options through its governance process, where users can review assessments, discuss potential additions, and vote on future deployments. ^[2]

Collateralised Loan Obligations (CLOs)

Collateralized Loan Obligations (CLOs) are structured credit products made from diversified pools of corporate loans. They divide this loan exposure into tranches with different levels of risk and protection, with the highest-rated tranches—such as AAA CLOs—designed to absorb losses only under extreme default scenarios. These instruments have historically offered returns above Treasury bills while maintaining relatively low volatility, strong liquidity, and broad participation from institutional investors. Noon evaluates CLO exposure through established products like Janus Henderson’s JAAA and JBBB, focusing on high-quality, floating-rate, AAA-rated tranches known for their stability, low historical default rates, and resilience across market cycles. ^[9]

Private Credit Funds

Private credit funds provide capital directly to borrowers outside traditional banking channels, typically financing small businesses, consumer lending, receivables, and other niche sectors. They aim for high single

• to low double-digit annual returns with lower volatility than public markets by focusing on short-duration loans, rigorous underwriting, and diversified exposure. These funds benefit from credit and illiquidity premiums, making private credit a stable, income-generating asset class with limited correlation to broader markets.

Within this landscape, managers range from large institutional platforms to more agile firms that specialize in fintech or emerging-market lending. Noon’s focus is on the latter category due to its flexibility and alignment with the protocol’s operational needs. This includes funds like Fasanara’s Tactical Credit strategy (F-TAC), which invests across short-duration credit opportunities, including trade receivables, consumer loans, and real estate-backed debt. F-TAC offers a combination of consistent returns, low volatility, and diversification, reflecting the broader characteristics that make private credit funds appealing as a defensive yield strategy. ^[10]

DeFi Lending

DeFi lending involves depositing stablecoins, such as USDC or USDT, into on-chain lending protocols like Morpho and Euler, where borrowers post collateral that exceeds the loan value. Lenders earn variable interest based on pool utilization, while the principal remains stable, offering real-time transparency, programmable risk controls, and generally instant withdrawals. Noon applies this strategy under strict deployment limits, insurance coverage, and curated pool selection to ensure low volatility and controlled risk.

The protocol mitigates market, volatility, credit, liquidity, and counterparty risks by restricting deployment to blue-chip collateral and reputable curators, limiting exposure per pool, monitoring utilization and APY, and ensuring insurance coverage against smart contract exploits. Smart contract risk remains moderate, but is managed through audits, production testing, and the use of established protocols. Frameworks like Gauntlet and Steakhouse provide layered risk management, including governance safeguards, collateral standards, stress testing, and continuous monitoring to maximize yield while maintaining principal protection. ^[11]

Principle Tokens (PTs)

Principal Tokens (PTs) are financial instruments that represent the right to redeem an underlying asset 1:1 at maturity, separating yield from principal. By purchasing PTs at a discount, investors lock in a predictable, fixed yield, with the APY reflecting market expectations and converging to the underlying asset’s value over time. Noon focuses on PTs backed by highly liquid, reputable protocols to ensure deep secondary-market liquidity and low principal volatility, aligning with its stability-first mandate.

Deployment of PTs is managed under strict risk controls, including selection of longer-dated maturities, caps on per-pool exposure, minimum yield thresholds above T-bills, and automated monitoring of price, liquidity, and protocol risks. Noon does not purchase PTs from its own pools to avoid circular exposure, ensuring that all investments remain fully collateralized and externally sourced. This approach allows the protocol to secure fixed yields while maintaining controlled downside. ^[12]

Looping

Looping is a leveraged deployment strategy where borrowed funds are repeatedly used to purchase additional collateral, amplifying yields while increasing risk. For example, borrowing USDC at a lower rate to buy higher-yield Principal Tokens, then borrowing again against those PTs, allows Noon to scale returns to 15–30% APY. The strategy relies on liquid, reputable collateral and is designed to convert modest base yields into higher, more predictable returns, while operational and liquidation risks are carefully managed.

Risk is mitigated through strict asset selection, leverage caps, position limits, automated monitoring, and insurance coverage against depeg-induced liquidations. Noon only uses external assets for looping, avoiding self-dealing with its own tokens, ensuring collateral integrity. This approach allows the protocol to pursue enhanced, risk-managed yields while maintaining security and stability. ^[13]

NOON

NOON is the governance token of the Noon ecosystem and becomes sNOON when staked. Stakers gain voting rights and receive undeployed funds once the Insurance Fund is fully capitalized. After the token generation event, users earn NOON through monthly campaigns, and staking applies multipliers based on duration. These multipliers apply only to NOON earned through USN or sUSN participation, and the token remains non-transferable until late 2025.

Access to NOON is solely through engagement with the protocol, rather than through investor allocation, with USN and sUSN holdings serving as the primary path for accumulation. Staking NOON provides governance participation and access to ecosystem benefits, including influence over strategic decisions, eligibility to receive unused Insurance Fund capital, and exposure to the protocol’s buyback mechanism, which uses excess insurance reserves to purchase NOON. ^[14]

US Noon (USN)

USN is Noon's dollar-pegged stablecoin, backed 1:1 by assets such as USDT, USDC, or short-term U.S. Treasury Bills held in custodial wallets. It is available across multiple chains, with institutional users able to mint and redeem through the Noon application, and all other users accessing it through decentralized exchange pools. Holding USN does not provide raw yield; instead, it offers a larger share of governance-token rewards once NOON is live. This structure positions USN as the unstaked component of the protocol, serving users who prefer governance-token exposure rather than yield from underlying strategies.

The protocol promotes USN through a rewards approach that grants significantly higher points during the beta period and larger governance token allocations after launch. Its value model is designed to balance upside through token rewards with limited downside risk due to the stablecoin’s consistent dollar peg and redemption mechanisms. To support user confidence, the protocol plans to implement third-party, real-time solvency verification. Because a large share of governance tokens is allocated to users over multiple years, USN rewards are intended to remain more stable over time compared to similar systems, helping maintain participation and indirectly supporting stronger long-term returns for the staked side of the protocol. ^[8]

sUSN

sUSN is the staked version of USN and represents a claim on the USN held within Noon's staking pool. Users can obtain sUSN by staking USN through the Noon application or by purchasing it on decentralized exchanges, and they can exit by unstaking—subject to a cooldown period—or by selling it on the open market. sUSN holders receive 80% of the protocol’s raw returns, along with a smaller allocation of governance tokens. Its value increases as additional USN is minted into the staking pool, reflecting the portion of returns directed to stakers and ensuring sUSN remains fully backed and appreciates as the pool grows.

The purpose of sUSN is to provide access to returns generated through the protocol’s delta-neutral strategies. Its yield is composed of the protocol’s underlying returns and a boost from USN holders, who give up their share of raw yield in exchange for governance token rewards. Because Noon allocates a large share of its governance tokens to users over multiple years, this reward structure can be sustained longer than in comparable systems. As a result, the boosted yield for sUSN holders is intended to remain more consistent over time, supporting higher returns across different market conditions. ^[8]

Partnerships

• Spectra
• Beam
• ZeroLand
• zkSync
• Sophon
• Stork
• RFX
• Accountable
• SyncSwap
• Sinari
• Halborn
• Quantstamp
• Ceffu