[Serenity Premium] RWA Stablecoin Series: Noon Capital USN [Initial Review Jun 2025]

Noon Capital is a decentralized finance (DeFi) protocol that has developed USN, a yield-bearing stablecoin pegged 1:1 to the US dollar. USN is backed by a diversified reserve consisting of USDT, USDC, and short-term U.S. Treasury bills, all held in secure custodial wallets. The protocol employs delta-neutral strategies, such as interest rate arbitrage and tokenized Treasury bill investments, to generate yield without exposing users to significant risk. Users can stake USN to receive sUSN, which entitles them to 80% of the protocol's raw returns. In addition to yield, USN holders earn governance points that may be converted into $NOON tokens upon the upcoming token generation event (TGE) scheduled for Q2 2025. Notably, Noon Capital distinguishes itself by offering real-time, independent proof of solvency through a partnership with Accountable, ensuring transparency and trustworthiness in its operations.

The Basics of USN and sUSN

Noon Capital's USN is a RWA stablecoin, backed by a hybrid strategy that can contain T-bills, funding rate arbitrage strategies, etc., similar to Ethena's concept. At the moment, it's mainly T-bills (see next section for details).

The current market cap of USN is $27m, half of which is staked in sUSN, who receives 80% of the revenue of the protocol. On the other hand, holding USN does not have yield but accumulates more points for its future airdrop of governance token $NOON.

Noon Capital allocates between 2 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

The revenue is then distributed in the following manner:

Proof of Reserve System