> 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/return-distribution.md).

# Return Distribution

<mark style="color:purple;">**Noon**</mark> generates returns across a diversified basket of strategies, and this page covers what happens to them next. The short version: the large majority goes to the people holding <mark style="color:violet;">**$sUSN**</mark>, and the rest funds the protection and operation of the protocol.

## <mark style="color:$primary;">The split</mark>

Every day, the protocol's raw returns are divided three ways:

<figure><img src="https://3816918787-files.gitbook.io/~/files/v0/b/gitbook-x-prod.appspot.com/o/spaces%2FL26rQzcNmiUZrCXkxkjS%2Fuploads%2FFZyEh3E7AJfOau4aVNgs%2FYieldAllocation.png?alt=media&amp;token=8f6d09e2-a68c-4136-95bf-d44789aea5fc" alt=""><figcaption></figcaption></figure>

## <mark style="color:$primary;">How sUSN holders returns</mark>

The 80% flows to <mark style="color:violet;">**$sUSN**</mark> automatically. There is nothing to claim, no rewards to harvest, and no transaction to sign: your <mark style="color:violet;">**$sUSN**</mark> simply becomes worth more <mark style="color:violet;">**$USN**</mark> as the protocol earns, every day, whether you check the app or forget it exists for a year.

That yield is also boosted by design. <mark style="color:violet;">**$sUSN**</mark> holders forgo their share of the returns in exchange for earning <mark style="color:green;">**Noon points**</mark> at a much higher rate, and the yield they give up flows to <mark style="color:violet;">**$sUSN**</mark> holders instead. The more of the supply that sits in <mark style="color:violet;">**$USN**</mark> chasing points, the more concentrated the yield becomes for everyone in <mark style="color:violet;">**$sUSN**</mark>.

<mark style="color:violet;">**$sUSN**</mark> holders also receive a small allocation of governance tokens, so the people whose capital powers the protocol have a say in how it runs. [See <mark style="color:violet;">**$NOON**</mark> and <mark style="color:violet;">**$sNOON**</mark>.](/4.-usdnoon/overview.md)

## <mark style="color:$primary;">Where the other 20% goes</mark>

**The Insurance Fund (10%)** is the protocol's buffer. It absorbs strategy-level volatility so temporary drawdowns don't reach your yield, covers the deductible when an insurance claim pays out, and covers slippage when positions need to unwind quickly. Contributions season before release, and surplus is used to buy back $NOON and distribute it to stakers, so the fund either protects the protocol or returns value to the community. Full mechanics available on the [**Layered Insurance**](/5.-the-security-framework/layered-insurance.md) page.

**The Operations Fund (10%)** covers the cost of running <mark style="color:blue;">**Noon**</mark> infrastructure, audits, custody, and the team that maintains all of it. Excess operating funds flow onward into the Insurance Fund rather than accumulating.

For where the returns come from in the first place, see [**Return Generation**](/3.-the-yield-engine/return-generation.md) and our [**Deployment Strategies**.](/3.-the-yield-engine/yield-strategies.md)