Overview

Every stablecoin yield comes from somewhere. When a protocol will not tell you where, the answer may be token emissions, or something more dangerous (like the next depositor, or hidden risk). Yield looks free right up until it is not.

Noon's answer is to show the engine. Reserves backing $USN are deployed across income-generating strategies. Each is named, publicly analysed, and governance-approved before a single dollar moves. CLOs, private credit, DeFi lending, principal tokens, looping, and treasuries all have a page below. This is the standard for the section

This page gives you the map. Each strategy links to its own analysis, and the pages on Return Generation and Return Distribution cover how the resulting yield is measured and where it flows.

Any return figure is indicative and subject to market conditions. See Risks and Mitigants.

Strategies in the deployment basket

Strategy	What it is	Detail
Tokenised Treasury Bills	Short-term US government debt, the low-risk base of the basket	U.S. Treasury Bills
Collateralised Loan Obligations	AAA-rated tranches of pooled corporate loans	CLOs
Private credit	Non-bank direct lending via established funds	Private credit
DeFi lending	Lending stablecoins on audited, battle-tested protocols	DeFi lending
Principal tokens	Fixed-rate positions via yield-trading protocols, with the rate locked at maturity	Principal tokens
Looping	A leveraged strategy amplifying base yields, carrying liquidation risk	Looping
Funding Rate Arbitrage (Perps)	Delta-neutral strategy - long the spot and short the perp of the same asset, and collect the funding rate	Funding Rate Arbitrage (Perps)

The basket is dynamic. Allocations shift as market conditions change. The aim is durable returns across rate and funding environments, not a headline number that holds in one regime.

Strategies the community voted against

Not every analysed strategy enters the basket. The following were analysed in full, then voted down by the community.

• Business Development Companies (BDCs) (Analysis)

The risk analysis remains published so our reasoning stays on the record.

How strategies get added

Every candidate strategy moves through Noon's four-phase pipeline:

1. Strategy and asset class selection. Screening for stable risk-adjusted returns, liquidity proportionate to capital needs, programmatic monitorability, and fit with a tokenised future.

2. Risk assessment. Noon’s Governance Forum for community evaluation. Each time a discussion takes place, we announce it in all our socials, so that you don’t miss it. The voting process typically lasts 2 weeks.

3. Execution planning. If the strategy clears discussion and the vote, the team defines deployment sizing, entry and exit triggers, and rebalancing logic.

4. Testing and scaling. Deployment begins constrained and scales with performance.

The binding vote between phases 2 and 3 is open to $sNOON holders. Noon's Governance didcates the process.

More about returns

• How yield is measured and APY calculated → Return Generation

• The 80/10/10 split and the Insurance Fund → Return Distribution

• The Noon points programme → Rewards