How we stack up

This section discusses how we fit into the wide world of stablecoins

The stablecoin market is competitive. We’ve been carefully studying this space for months, and vowed that we would only enter this space if we could truly build something unique, which would add significant value to users. We’ve designed both our stablecoin and governance token deliberately to create the most compelling value proposition for users in the stablecoin space. Here is how both stablecoin and our governance tokens, USN and NOON, stack up, and stand out.

USN (and sUSN)

USN and sUSN are the heart of Noon, and are uniquely differentiated from other stablecoins:

1. Superior Returns: USN and sUSN are designed to have superior through cycle returns, compared to all other stablecoins.

2. Only Delta-Neutral Deployment: The collateral used to mint USN will only be deployed in delta-neutral strategies, giving our users peace of mind and stability.

3. Maximum Scalability: By expanding our mandate over time to include the most high-capacity deployment strategies in web3 (and beyond), our users don’t have to worry about diminishing marginal returns at scale.

Additional details on USN and sUSN's differentiators can be found in the "About our Stablecoin" section below.

NOON (and sNOON)

While we have yet to detail our governance (NOON) and staked governance token (sNOON), their unique advantages play a key role in differentiating the Noon protocol from other stablecoins.

1. Optimised for Users: We are tired of protocol users being treated as exit liquidity for early investors and the team. So we decided to avoid investors entirely - so the only way to get tokens is to build Noon (~20% of tokens) or use Noon (65% to 80% of tokens). And all of our our team tokens vest linearly over a web3 leading 7 years, ensuring that we’re building together for the long term

2. Insurance Fund: We believe that we have built a protocol which is safer than any other. But we know things can still go wrong. That’s why we’ve created a insurance fund, capitalised by a portion of our raw protocol return. After the Insurance Fund is sufficiently capitalised, excess liquidity will be distributed to staked NOON (sNOON) token holders.

3. Sustainable Buy-Back Mechanism: Although we have 65% to 80% of tokens allocated to user distributions, we know that even this will run out in time. But we want to ensure that our users, especially our governance token holders, always receive some additional governance tokens on a regular, ongoing basis. So we’ve designed a unique governance token buy-back mechanism which will ensure that users are receiving boosted yield in the form of governance tokens in perpetuity.

Additional details on NOON and sNOON's differentiators can be found in the "Our governance token: At a glance" section below.

These differentiators collectively create a compelling competitive position for Noon as a protocol - by ensuring both our stablecoin and our governance token are well-positioned in this crowded landscape.