Our deployment strategies

This section details Noon's deployment strategies, expanding to more strategies over time.

TL;DR

We started Noon with two deployment strategies:

1. Cash and carry trade, or Funding rate arbitrage: Our algorithms will buy the spot (long) and sell the perpetual future (short) of highly liquid crypto currencies (e.g., BTC) to build delta-neutral positions that earn us the perpetual future funding rate

2. Tokenised Treasury Bills: We use on-chain protocols that tokenise US treasury bills to buy short term US Treasury Bills and collect the interest rate

3. Collateralised Loan Obligations (CLOs): Following a thorough analysis of various assets and funds within the CLO asset class, we chose to allocate capital to Janus Henderson’s JAAA. CLOs are structured credit instruments backed by diversified pools of corporate loans. Historically, they have delivered returns above Treasury bills while maintaining relatively low volatility, strong liquidity, and robust institutional participation.

4. Private Credit Funds: After evaluating the Private Credit asset class, we decided to allocate capital to Fasanara’s Fintech Tactical Credit Fund (F-TAC), which invests in short-duration, fintech-originated private credit assets such as SME loans, consumer credit, and trade receivables. The strategy leverages data-driven underwriting and diversified exposure across loan originators to generate consistent yield with low correlation to traditional markets and limited duration risk.

We are continuously evaluating new strategies to bring the best yields to our users. In this vein, we have ongoing discussions on our governance forum to allow our users to join the discussion on new deployment strategies, and participate in the future of the protocol with us.

The strategies we are currently evaluating are:

1. Business Development Companies

We have also summarised our risk analysis, and added useful links, in a subsection for each, below.