> For the complete documentation index, see [llms.txt](https://docs.noon.capital/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://docs.noon.capital/3.-the-yield-engine/overview.md).

# 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.

<mark style="color:blue;">**Noon**</mark>'s answer is to show the engine. Reserves backing <mark style="color:violet;">**$USN**</mark>  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**](/3.-the-yield-engine/return-generation.md) and [**Return Distribution**](/3.-the-yield-engine/return-distribution.md) 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**](/1.-noon-the-basics/risks-and-mitigants.md).

## <mark style="color:$primary;">Strategies in the deployment basket</mark>

<table><thead><tr><th>Strategy</th><th width="274">What it is</th><th>Detail</th></tr></thead><tbody><tr><td>Tokenised Treasury Bills</td><td>Short-term US government debt, the low-risk base of the basket</td><td><a href="/3.-the-yield-engine/yield-strategies/u.s.-treasury-bills.md">U.S. Treasury Bills</a></td></tr><tr><td>Collateralised Loan Obligations</td><td>AAA-rated tranches of pooled corporate loans</td><td><a href="/3.-the-yield-engine/yield-strategies/clos.md">CLOs</a></td></tr><tr><td>Private credit</td><td>Non-bank direct lending via established funds</td><td><a href="/3.-the-yield-engine/yield-strategies/private-credit.md">Private credit</a></td></tr><tr><td>DeFi lending</td><td>Lending stablecoins on audited, battle-tested protocols</td><td><a href="/3.-the-yield-engine/yield-strategies/defi-lending.md">DeFi lending</a></td></tr><tr><td>Principal tokens</td><td>Fixed-rate positions via yield-trading protocols, with the rate locked at maturity</td><td><a href="/3.-the-yield-engine/yield-strategies/principal-tokens.md">Principal tokens</a></td></tr><tr><td>Looping</td><td>A leveraged strategy amplifying base yields, carrying liquidation risk</td><td><a href="/3.-the-yield-engine/yield-strategies/looping.md">Looping</a></td></tr><tr><td>Funding Rate Arbitrage (Perps)</td><td>Delta-neutral strategy - long the spot and short the perp of the same asset, and collect the funding rate</td><td><a href="/3.-the-yield-engine/yield-strategies/funding-rate-arbitrage-perps.md">Funding Rate Arbitrage (Perps)</a></td></tr></tbody></table>

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.

## <mark style="color:$primary;">Strategies the community voted against</mark>

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

* Business Development Companies (BDCs) ([**Analysis**](/3.-the-yield-engine/yield-strategies/bdcs.md))

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

## <mark style="color:$primary;">How strategies get added</mark>

Every candidate strategy moves through <mark style="color:blue;">**Noon**</mark>'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.** <mark style="color:purple;">**Noon**</mark>’s [**Governance Forum**](https://forum.noon.capital/) 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 <mark style="color:violet;">**$sNOON**</mark> holders. <mark style="color:purple;">**Noon**</mark>'s [**Governance**](/robust-governance-and-operational-integrity.md) didcates the process.

## <mark style="color:$primary;">More about returns</mark>

* How yield is measured and APY calculated → [**Return Generation**](http:///yield/return-generation)
* The **80/10/10** split and the Insurance Fund → [**Return Distribution**](http:///yield/return-distribution)
* The <mark style="color:green;">**Noon points**</mark> programme → [**Rewards**](/5.-rewards/rewards.md)