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Noon$NOON: A Governance token with real returns
At Noon, we believe governance shouldn’t just be a responsibility—it should be rewarded. Protocols are complex systems that need constant tuning, and those who participate in shaping them deserve to see value in return. That’s why we’ve designed $NOON and $sNOON not just as tokens of participation, but as vessels of long-term value creation. While most governance tokens offer a say in decision-making—and, implicitly, the chance to benefit from token appreciation—we wanted to go further. At No...
NoonHow Noon Keeps Your Yield Safe: Three Layers of Insurance
At Noon, we don’t just care about returns. We care about your capital, and keeping it safe.In a world where DeFi promises high yields but can sometimes deliver high drama, we set out to make something different: a platform where your assets are secure, and your returns are safe, transparent, and reliable.Noon’s Safety Starts with Our StrategiesBefore we talk about insurance, let’s start with the foundation: our strategies. Every deployment at Noon is designed to minimize daily volatility whil...
Noon7 ways Noon is building the safest and most transparent stablecoin
Over the past two weeks, the stablecoin space has seen some controversy. According to recent reports, the TVL of some prominent stablecoin protocols appear to have been artificially inflated through recursive lending between themselves, a cycle where each protocol lends to the other using their own tokens as collateral. On the surface, that can make numbers look impressive. Underneath, it creates fragile, circular exposure, the very kind of hidden leverage that has caused collapses before. Th...
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Noon$NOON: A Governance token with real returns
At Noon, we believe governance shouldn’t just be a responsibility—it should be rewarded. Protocols are complex systems that need constant tuning, and those who participate in shaping them deserve to see value in return. That’s why we’ve designed $NOON and $sNOON not just as tokens of participation, but as vessels of long-term value creation. While most governance tokens offer a say in decision-making—and, implicitly, the chance to benefit from token appreciation—we wanted to go further. At No...
NoonHow Noon Keeps Your Yield Safe: Three Layers of Insurance
At Noon, we don’t just care about returns. We care about your capital, and keeping it safe.In a world where DeFi promises high yields but can sometimes deliver high drama, we set out to make something different: a platform where your assets are secure, and your returns are safe, transparent, and reliable.Noon’s Safety Starts with Our StrategiesBefore we talk about insurance, let’s start with the foundation: our strategies. Every deployment at Noon is designed to minimize daily volatility whil...
Noon7 ways Noon is building the safest and most transparent stablecoin
Over the past two weeks, the stablecoin space has seen some controversy. According to recent reports, the TVL of some prominent stablecoin protocols appear to have been artificially inflated through recursive lending between themselves, a cycle where each protocol lends to the other using their own tokens as collateral. On the surface, that can make numbers look impressive. Underneath, it creates fragile, circular exposure, the very kind of hidden leverage that has caused collapses before. Th...
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At Noon, our mission to build the world’s most intelligent stablecoin means we are constantly expanding the range of yield opportunities we evaluate. What began with core CeFi (basis trading) and TradFi (CLOs, private credit, treasury bills) strategies has since broadened into DeFi, where we can execute strategies like Lending and buying Principal Tokens (PTs).
Today, we’re opening the books on another DeFi-native strategy: Looping.
Looping strategies involve borrowing against collateral and reusing those borrowed funds to purchase more of the same collateral, repeating this cycle multiple times. The result is a leveraged position that amplifies both yield and risk. For Noon, looping is interesting because it can transform modest base yields into scalable returns in the 10–30% APY range, while still relying on liquid, trusted collateral.
To illustrate how we evaluate new strategies, we’re continuing our “open evaluations” series with this live example. This time, we’re assessing looping strategies on Aave using PTs as collateral.
We invite all users to head to our governance forum where we’ve summarised our research into looping and opened the floor to discussion. Whether you’re curious, skeptical, or excited—we welcome your perspectives. After 10 days of community feedback, we’ll move to a formal vote to determine whether looping should be added to Noon’s permitted deployment strategies.
Yield — Looping can realistically deliver 10 - 30% APY. Which is significantly higher than simple lending or PT exposure.
Flexibility — Can be extended to other types of collateral in the future.
Liquidity — Can often be unwound instantly if secondary markets are functioning normally.
Scalability — Strategies can be sized meaningfully, provided liquidity is sufficient.
Our initial focus would be on Aave, because of its high trustworthiness, liquidity and low interest rates.
We would only work with assets with billions in TVL, with significant instant liquidity available. To start with, we will only use PT-USDe and PT-sUSDe as collateral. Position caps and leverage limits would ensure exposure remains well within Noon’s risk framework.
Furthermore, Noon will always insure itself wherever it can. For example, when executing this PT-looping strategy, Noon will cover itself against depeg-induced liquidations through Nexus.
As with all potential deployments, looping is being evaluated through Noon’s four-phase pipeline:
We screen for strategies that:
Deliver stable and attractive risk-adjusted returns
Are liquid relative to withdrawal needs
Can be monitored programmatically
Align with Noon’s stability-first mandate
Looping meets these criteria when executed with trusted collateral and capped leverage.
This blog marks the start of our second phase — open evaluation. We’ve published a summary of our looping risk assessment in the forum, covering market risk, volatility/liquidation dynamics, counterparty risk, and smart contract considerations.
Key takeaway so far: Looping offers scalable yield but requires careful guardrails around leverage, collateral selection, liquidity management and depeg coverage.
If community feedback and further analysis suggest looping fits within our mandate, we will define:
Maximum leverage ratios to reduce liquidation risk
Eligible collateral types and platforms
Position caps to avoid concentration and liquidity issues
Exit triggers based on changes in collateral yield, borrowing costs, or liquidity depth
We will begin with small-scale looping deployments on Aave, monitored in real time with automated alerts for borrowing costs, health factors, and protocol-level changes. If successful, the strategy could be gradually scaled across additional platforms. Noon will buy insurance coverage to insure as many parts of the strategy as possible (e.g. insurance against depeg-induced liquidations,smart contract exploits of the relevant lending platforms, etc.).
Noon will never loop using its own tokens (USN/sUSN) as collateral. Doing so would effectively amount to “self-dealing”, which undermines collateral integrity. Our looping strategy will focus exclusively on external assets.
Looping is one of the most powerful strategies in DeFi—able to turn modest yields into high, scalable returns. But it comes with material risks: liquidation, volatility, and operational complexity. With proper leverage caps, position sizing, risk mitigation (via insurance) and continuous monitoring, looping can complement Noon’s broader yield strategy and become a valuable part of our portfolio.
For the next 10 days, we invite you to join the conversation in our governance forum:
👉 [Read the full risk assessment and share your view]
After the discussion window closes, an official vote will determine whether looping strategies should become one of Noon’s permitted deployments.
At Noon, the best ideas rise to the top. Let’s evaluate looping together and decide if it belongs in the yield engine we’re building.
At Noon, our mission to build the world’s most intelligent stablecoin means we are constantly expanding the range of yield opportunities we evaluate. What began with core CeFi (basis trading) and TradFi (CLOs, private credit, treasury bills) strategies has since broadened into DeFi, where we can execute strategies like Lending and buying Principal Tokens (PTs).
Today, we’re opening the books on another DeFi-native strategy: Looping.
Looping strategies involve borrowing against collateral and reusing those borrowed funds to purchase more of the same collateral, repeating this cycle multiple times. The result is a leveraged position that amplifies both yield and risk. For Noon, looping is interesting because it can transform modest base yields into scalable returns in the 10–30% APY range, while still relying on liquid, trusted collateral.
To illustrate how we evaluate new strategies, we’re continuing our “open evaluations” series with this live example. This time, we’re assessing looping strategies on Aave using PTs as collateral.
We invite all users to head to our governance forum where we’ve summarised our research into looping and opened the floor to discussion. Whether you’re curious, skeptical, or excited—we welcome your perspectives. After 10 days of community feedback, we’ll move to a formal vote to determine whether looping should be added to Noon’s permitted deployment strategies.
Yield — Looping can realistically deliver 10 - 30% APY. Which is significantly higher than simple lending or PT exposure.
Flexibility — Can be extended to other types of collateral in the future.
Liquidity — Can often be unwound instantly if secondary markets are functioning normally.
Scalability — Strategies can be sized meaningfully, provided liquidity is sufficient.
Our initial focus would be on Aave, because of its high trustworthiness, liquidity and low interest rates.
We would only work with assets with billions in TVL, with significant instant liquidity available. To start with, we will only use PT-USDe and PT-sUSDe as collateral. Position caps and leverage limits would ensure exposure remains well within Noon’s risk framework.
Furthermore, Noon will always insure itself wherever it can. For example, when executing this PT-looping strategy, Noon will cover itself against depeg-induced liquidations through Nexus.
As with all potential deployments, looping is being evaluated through Noon’s four-phase pipeline:
We screen for strategies that:
Deliver stable and attractive risk-adjusted returns
Are liquid relative to withdrawal needs
Can be monitored programmatically
Align with Noon’s stability-first mandate
Looping meets these criteria when executed with trusted collateral and capped leverage.
This blog marks the start of our second phase — open evaluation. We’ve published a summary of our looping risk assessment in the forum, covering market risk, volatility/liquidation dynamics, counterparty risk, and smart contract considerations.
Key takeaway so far: Looping offers scalable yield but requires careful guardrails around leverage, collateral selection, liquidity management and depeg coverage.
If community feedback and further analysis suggest looping fits within our mandate, we will define:
Maximum leverage ratios to reduce liquidation risk
Eligible collateral types and platforms
Position caps to avoid concentration and liquidity issues
Exit triggers based on changes in collateral yield, borrowing costs, or liquidity depth
We will begin with small-scale looping deployments on Aave, monitored in real time with automated alerts for borrowing costs, health factors, and protocol-level changes. If successful, the strategy could be gradually scaled across additional platforms. Noon will buy insurance coverage to insure as many parts of the strategy as possible (e.g. insurance against depeg-induced liquidations,smart contract exploits of the relevant lending platforms, etc.).
Noon will never loop using its own tokens (USN/sUSN) as collateral. Doing so would effectively amount to “self-dealing”, which undermines collateral integrity. Our looping strategy will focus exclusively on external assets.
Looping is one of the most powerful strategies in DeFi—able to turn modest yields into high, scalable returns. But it comes with material risks: liquidation, volatility, and operational complexity. With proper leverage caps, position sizing, risk mitigation (via insurance) and continuous monitoring, looping can complement Noon’s broader yield strategy and become a valuable part of our portfolio.
For the next 10 days, we invite you to join the conversation in our governance forum:
👉 [Read the full risk assessment and share your view]
After the discussion window closes, an official vote will determine whether looping strategies should become one of Noon’s permitted deployments.
At Noon, the best ideas rise to the top. Let’s evaluate looping together and decide if it belongs in the yield engine we’re building.
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