# Should you hold USN or sUSN? We know our users will come in all shapes, sizes, and risk appetites. And we wanted to ensure that **Noon** has a solution, a deployment strategy, for all. ## 1. USN: The “Moonshot” deployment strategy **USN** is the core of **Noon**. It is our unstaked stablecoin and pegged 1:1 to USD. Its holders do not receive any of the [raw protocol yield](https://mirror.xyz/nooncapital.eth/K5IStjRrJHIQ_Zx3DK1b64JnhqbyASVV_LVUnQqAKY4). Instead, we reward holders of **USN** with our **$NOON** governance tokens. * Permissioned users can mint (and redeem) **USN** via our dApp, using (to) USDT or USDC, with more currencies to come. * Everyone else can buy (and sell) **USN** on decentralised exchanges, which can be accessed via our app. Permissioned or otherwise, holding **USN** will appeal to users who are looking for a chance for high rewards - those looking to shoot for the moon. ### The Moonshot For **USN** holders: you’ll get several times the points (during the Public Beta) / governance token rewards (after the Public Beta) that **sUSN** holders receive. The **$NOON** governance token will be launched in late Q2 2025, and be an integral part of the protocol. We have developed a novel tokenomic approach for the **$NOON** token to ensure users have an excellent experience - holders of the **$NOON** governance token will have access to unique reward opportunities that will be made public in due course. ### Downside protection Not only will **USN** holders have the opportunity to earn disproportionately high rewards but, unlike most high-reward opportunities, deploying to **USN** will not come with a commensurately high risk. Since **USN** will be pegged 1:1 to USD, the downside for **USN** is limited. Users will be able to sell or redeem their **USN** for an equivalent USD value at all times - protecting their downside. We have all seen several protocols that make a similar promise - both in the distant and recent past - with “problematic” follow through. This is why we’ve been planning, from early in our Public Beta, to have a third party providing real-time Proof of Solvency publicly. We think this will be critical to users being comfortable with **Noon** - and will be the only way to show how truly safe our operations are. ### Sustainable strategy Typically, when comparable protocols have adopted a similar reward mechanism for their unstaked stablecoin, they have boosted rewards in the first year alone - rewards in subsequent years have tapered dramatically. This is typically because, while they want to make a big bang out of the gate with large token rewards, they do not have enough tokens allocated to users to continue this much beyond a year. Since we are able to allocate 65-80% of our governance tokens to users, we’re able to maintain significant **$NOON** rewards to **USN** users for several years. So we do not expect to see a dramatic drop-off in **USN** holders from Y1 to Y2, as you may have seen in other similar protocols - which allows **sUSN** returns to remain higher for longer. For details on why rewarding **USN** for longer allows **sUSN** returns to remain high, please see the “Sustainable return boost” section below. ## 2. sUSN: the “Stable” deployment strategy **sUSN** is the way that users can get access to the returns generated by our delta neutral strategies. Users can stake **USN** into a staking pool. They receive **sUSN**, which represents a share of the **USN** in the staking pool. As our strategies generate return, additional **USN** are minted directly into the staking pool to ensure **Noon** is 100% collateralised. Every time this happens, the value of each **sUSN** increases, as each **sUSN** holds the same share of a larger number of **USN**. ### Highest through-cycle raw returns When we say “raw returns”, we refer to the base returns our collateral receives from our collateral deployment strategies. We are confident that these returns will be among the highest through-cycle raw returns of any stablecoin project. More information can be found in our Mirror post [here](https://mirror.xyz/nooncapital.eth/mhwDSbaE4-rfmaWGWsdAq5YieocnR7L4vO3grvYjb_g), where we talk about the intelligence of our return strategies and why it matters (spoiler: in part because it leads to highest through cycle-raw returns). ### Sustainable return boost To get to the APY of **sUSN**, our raw returns receive a boost. This boost comes from our **USN** holders, who forgo their share of raw returns in favour of additional governance tokens. Simply put, in exchange for governance tokens, **USN** holders cede their raw returns to **sUSN** holders. In similar protocols, staked stablecoin returns have been boosted by 1.5x to 2.0x (compared to raw returns) in the first year, when these protocols have rewarded their unstaked token holders heavily. Most similar protocols cannot offer heavy governance token incentives to users for longer than 1 year. Since **Noon** has been able to avoid selling tokens to VCs and other investors, we have been able to reserve 65-80% of our total token supply for distribution to users. That’s why we can offer significant token rewards to our **USN** holders for a longer period of time, which in turn boosts **sUSN** returns for that duration.