How It Works
This page walks through the moving parts of Noon: the tokens, how yield is generated and distributed, and how the pieces fit together.
The tokens
Noon has four tokens. Two are about holding value and earning. Two are about governance.
$USN
The dollar-pegged stablecoin. Holds value, earns the most Noon Points
No
$sUSN
Staked $USN. Accrues the protocol's yield + (limited) Noon Points
No
$NOON
The governance token. Able to be earned (via Active Stake, Open Stake), and bought (on CEXes and DEXes)
No
$sNOON
Staked $NOON. Carries voting power, earns rewards via Noon Buyback Program
Yes
$USN is the foundation for the protocol at large. Stake $USN (via Active Stake or Open Stake) to get $sUSN, or buy $sUSN directly, and start earning yield.
$NOON is the foundation for the protocol's governance. Stake $NOON to get $sNOON. $sNOON grants you voting power, enabling you to participate in Noon’s Governance Forum and contribute to the future of the protocol, as well as access to more rewards.
Unstaking $sUSN to receive $USN is simple - only subject to a cooldown.
Unstaking $sNOON to receive $NOON may result in the loss of some or all of $NOON rewards, subject to the rules on Staking Framework.
More details on each: $USN and $sUSN and $NOON and $sNOON.
How yield is generated
The dollars backing $USN (and $sUSN) are deployed across a diversified set of income-generating strategies rather than sitting idle. These include U.S. Treasury Bills, CLOs, private credit, DeFi lending, and others, each chosen and weighted to balance return against risk.
Every strategy is named and explained in The Yield Engine.
How returns are distributed
The protocol's returns are split in three ways:
80% to $sUSN holders
10% to the Insurance Fund
10% to the Operations Fund
These three shares sum to 100% of the protocol's distributable returns. The portion distributed to $sUSN holders increases the value of $sUSN daily; the other two portions fund the protocol's safety buffer and its running costs.
Full detail on Return Distribution.
The Insurance Fund
The Insurance Fund is the protocol's safety buffer. Each month, 10% of raw protocol returns are sent to the Insurance Fund. These funds are used primarily to absorb daily volatility and cover insurance deductibles.
That capital is seasoned in the Insurance Fund for 12 months. After seasoning, the Insurance Fund uses the capital to buy back $NOON from the open market. The bought-back tokens are then distributed pro rata to $NOON holders.
The result is a direct yield stream for $sNOON holders, and added utility to our governance token.
The Operations Fund
The Noon Operations Fund receives 10% of protocol yield. It uses these funds to cover the costs of Noon's operations. After covering these costs, and building up a 12m operating reserve, the Noon Operations Fund will re-direct all excess funds to the Noon Insurance Fund on a monthly basis.
Token value propositions
Value proposition of $USN: $USN holders forgo rights to raw yield generated by deposited collateral. Instead, they receive a disproportionate governance token reward. Holders of $USN benefit if the Noon governance token appreciates, and from rewards that accrue to the staked governance tokrn.
Value proposition of $sUSN: $sUSN holders receive the majority of yield generated by deposited collateral. This yield is boosted by the yield foregone by $USN holders. $sUSN holders also receive governance tokens, so they can participate in Noon governance.
Value proposition of $NOON: $NOON holders will be able to stake their tokens to receive $sNOON.
Value proposition of $sNOON: $sNOON holders will be able to vote on all Noon governance proposals, like the addition of new delta neutral strategies to the protocol. $sNOON holders will receive rewards from Active Staking and Open Staking programs. $sNOON holders will also benefit from the $NOON buyback program.
Points and boosts
Points program: Noon now has a live points program, where holders of $USN and $sUSN are rewarded for their token balances and on-chain activity. Noon points accrue in real time and are displayed directly within the Noon App. These points are the primary mechanism for early community participation. When the Noon governance token TGE took place in Q2 2025, all participants became able to convert earned Noon points into Noon tokens.
Point boosts: Users will be able to "boost" the points they receive by participating in activities with our partners, like providing $USN and $sUSN liquidity on DEXes, or depositing $USN as collateral on lending protocols.
Token boosts: When converting points to tokens, users will be able to choose to stake their tokens for up to 12 months to receive significant additional token rewards.
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