How it works

This section outlines how Noon works.

Our building blocks

Noon features a familiar dual token structure:

• $USN (USN) is Noon’s stablecoin. It is pegged 1:1 to the US dollar.

  • Staking USN allows users to access $sUSN (sUSN), a token which appreciates as the protocol generates return

• $NOON (NOON)is Noon’s governance token (available after $NOON in Q2 2025).

  • Staking NOON allows users to access $sNOON (sNOON), a staked Governance token

Mechanics

This is a very quick summary of the mechanics of the Noon protocol.

Acquiring and divesting tokens

Acquire: Users can use collateral (like USDT or USDC) to mint or buy USN. Users can stake USN to get sUSN - or buy it on the open market. Only users and team members will be granted NOON - everyone else will need to buy it on the open market. Users will be able to stake NOON to receive sNOON.

Divest: Users can sell USN and sUSN on the open market. Alternatively, users can unstake sUSN to receive USN, and then redeem USN for USDC or USDT. Users will be able to unstake sNOON to recieve NOON, and sell NOON on the open market.

Yield generation and distribution

Yield generation: Collateral received by Noon is used to generate yield via our delta-neutral strategies.

Return distribution: 80% of the protocol's raw returns are directed to sUSN holders. 10% are directed to the Noon Insurance Fund. 10% are directed to the Noon Operations Fund.

Insurance and operations funds

Noon Insurance Fund: The Noon Insurance Fund receives 10% of protocol yield. It uses its funds to address any security incidents that impact Noon users. After 3 months, if unused, funds are distributed to sNOON holders.

Noon Operations Fund: The Noon Operations Fund receives 10% of protocol yield. It uses these funds to cover the costs of Noon's operations. After covering these costs, and building up a operating reserve, the Noon Operations Fund will re-direct all excess funds to the Noon Insurance Fund.

Token value propositions

Value proposition of USN: USN holders forgo rights to the raw yield generated by the deposited collateral. Instead, USN holders are rewarded with a disproportionate governance token reward. Holders of USN will be rewarded if and when the value of the Noon governance token appreciates.

Value proposition of sUSN: sUSN holders receive the majority of the yields generated by the deposited collateral. This yield is boosted by the yield foregone by USN holders. sUSN holders also receive a small amount of governance tokens to ensure they can participate in Noon governance.

Value proposition of NOON: NOON holders will be able to stake their tokens to receive sNOON.

Value proposition of sNOON: sNOON holders will be able to vote on all Noon governance proposals, like the addition of new delta neutral strategies to the protocol. sNOON holders will also receive any unused funds from the Noon Insurance Fund.

Points and boosts

Points program: Noon will have a points programme, where holders of USN and sUSN will be rewarded for their token holdings and activities. These points will be awarded on a real time basis, and will be updated on the Noon dApp. In Q2 2025, when the Noon governance token's TGE occurs, all point holders will have the ability to convert their points to $NOON tokens.

Point boosts: Users will be able to "boost" the points they receive by participating in activities with our partners, like providing USN and sUSN liquidity on DEXes, or depositing USN as collateral on lending protocols.

Token boosts: When converting points to tokens, users will be able to choose to stake their tokens for up to 12 months to receive significant additional token rewards.