Liquidity
A yield-bearing stablecoin is only as good as your ability to get it back. Noon structures redemption capacity in tiers. This absorbs exits in an orderly sequence. It avoids forced position sales. It also shows how much of the reserve is reachable and when.
The redemption waterfall
Redemption capacity is tiered by Total Value Locked (TVL), as below.
T+0 (same day)
20% of TVL
T+3 (within three days)
60% of TVL
T+5 (within five days)
100% of TVL
Everyday exits clear from the immediate tier. Larger waves settle within days. A full-reserve unwind completes inside a week. The tiers prevent forced position sales at a bad price.
What makes this possible
The waterfall comes from three deliberate reserve layers:
Liquid base assets. A meaningful share of reserves sits in T-bills and DeFi lending positions. These convert to dollars within hours.
Diversified duration. The basket mixes redemption profiles. No single strategy dictates the protocol's timeline. Short-duration positions cover the waterfall's front. Longer-duration strategies earn in the back.
Proprietary liquidity management system (PLMS). Noon's PLMS is a series of legal agrements with a vareity of counterparties which allow Noon to ensure that it meets its guarantee to allow 100% of TVL to be redeemed within T+5. Specifically, it allows Noon to exit its private credit positions, whch typically take over 3 months to unwind, within 5 days.
If required, Noon can provide an attestation from our private credit partner, confirming their review of Noon's PLMS, and their assessment that it allows all redemptions within T+5.
What this means for you
Selling $USN or $sUSN on a DEX is always available at market. It remains subject to pool liquidity at that moment.
Unstaking $sUSN back to $USN follows a 7-day cooldown. Redeeming through the protocol is the permissioned path. This waterfall backs that path; see Mint & Redeem.
For how liquidity fits the wider risk picture, see Disciplined Risk Management and Risks & Mitigants.
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