At Noon, as part of our mission to be the most intelligent stablecoin in the world, we are continuing to evolve. From a narrow set of yield strategies to a broader, more resilient portfolio - this evolution is designed to tap into every stable, scalable source of yield across both traditional and decentralised finance. Over the last few months, we’ve focused on tapping into the best TradFi strategies, from treasuries to CLOs to private credit - even exploring (and turning down) BDCs. Over the next few months, we’re going to start looking at DeFi yield strategies. DeFi yield worried us, due to risks like smart contract risk which were very difficult to hedge. However, after a lot of work, we’ve been able to lock down a number of strategies we are very excited about, and risk mitigation tactics which make these strategies very compelling.
To illustrate how we assess new DeFi strategies, we’re continuing our series of “open evaluations” with another live example. This time, we’re evaluating DeFi Lending—a crypto-native strategy offering over-collateralised, on-chain lending opportunities with instant liquidity and real-time transparency.
We invite all users to head to our governance forum where we’ve summarised our research into DeFi lending and opened the floor to discussion. Whether you’re curious, skeptical, or excited—we welcome your questions and perspectives. After 2 weeks of community feedback, we’ll move to a formal vote shortly to determine whether DeFi lending should be added to Noon’s list of permitted deployment strategies.
In Noon’s case, we would only lend stablecoins (USDC and USDT) into carefully selected pools, aiming to earn competitive, variable yields while avoiding price volatility on principal.
Why it’s attractive:
Yields: Stablecoin lending APYs in high-quality pools often range between 5–15%, depending on market demand.
Liquidity: In most pools, funds can be withdrawn instantly—subject to utilisation.
Transparency: Positions, collateral, and rates are visible in real time on-chain.
Some of the most prominent DeFi lending venues include Aave, Euler and Morpho.Our preliminary screening points to Euler and Morpho’s large-cap stablecoin pools as the most compelling fits—offering strong liquidity and competitive APYs within our stability-first mandate.
As with all potential deployment strategies, DeFi lending is being evaluated through Noon’s four-phase pipeline, which ensures every new asset is vetted through a rigorous and transparent lens.
1. Strategy and Asset Class SelectionWe begin by screening for assets that:
Offer stable and attractive risk-adjusted returns
Are liquid relative to our withdrawal needs
Can be monitored programmatically
Align with a crypto-native future
DeFi lending meets these criteria when focused on stablecoin supply into large, liquid pools. By constraining deployments to a percentage of “safe utilisation” below each pool’s kink rate (the utilisation amount at which point the interest rate drastically increases), we can protect instant liquidity.
2. Risk Assessment Framework ← You are here
This blog post marks the start of our second phase—open evaluation. We’ve published a summary of our risk assessment in the forum, covering market correlation, liquidity risk, credit (liquidation) risk, and smart contract considerations. We will continue this phase with a community discussion followed by a vote.
Key takeaway so far: Low market volatility risk due to stablecoin lending, but smart contract and liquidity dynamics require rules around position sizing. We encourage users to challenge or expand on this conclusion.
3. Execution Planning
If community feedback and further analysis suggest DeFi lending fits within our stability-first mandate, we will define:
Which pools are eligible
Deployment caps per pool and per protocol
APY thresholds — lending will only proceed if net returns exceed the T-bill rate after factoring in insurance costs, and the insurance cover meets our standards for payout reliability and coverage scope
Exit triggers based on utilisation, APY drop, collateral volatility, or changes in insurance availability
This ensures that any yield earned is not only attractive, but also protected against potential protocol failures or bad debt scenarios. Without appropriate insurance, this strategy will not move forward.
4. Testing & Scaling
We will begin with small-scale deployments into select pools with large liquidity. The position will be monitored actively, with real-time alerts on utilisation, APY and collateral health.
After a prolonged period of stable yield, scaling will follow. Again, without appropriate insurance against smart contract failures, this strategy will not move forward.
As Noon Capital grows, so does our commitment to community-led strategy selection.
As our governance token is now live, token holders can go beyond giving feedback—you have the power to vote (with sNOON) on whether we proceed with new strategies and asset classes, such as DeFi lending.
That means every new yield strategy, from private credit to on-chain primitives, will be surfaced transparently and decided collectively.
Your voice isn’t just heard—it’s counted.
Over time, this transition will move Noon from centralised intelligence to a decentralised, community-driven yield engine. Whether it’s lending on Morpho, tokenised T-bills, or new structured products, our direction is yours to shape.
We’re very excited to be dipping our toes into the DeFi Yield space, starting with DeFi Lending. While there are many more DeFi Yield strategies our team is researching, we feel DeFi Lending to be the perfect jumping off point.
DeFi Lending offers a compelling mix of yield, liquidity, and transparency—but like all strategies, it carries risks that must be carefully managed. With smart guardrails, insurance, and community oversight, it could become a valuable addition to Noon’s toolkit.
For the next 2 weeks, 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 DeFi lending becomes one of Noon’s permitted deployment strategies.
If you see a stronger pool, a smarter cap, or a hidden risk—we want to hear it. At Noon, the best ideas rise to the top.
Let’s build this yield engine together.
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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, as part of our mission to be the most intelligent stablecoin in the world, we are continuing to evolve. From a narrow set of yield strategies to a broader, more resilient portfolio - this evolution is designed to tap into every stable, scalable source of yield across both traditional and decentralised finance. Over the last few months, we’ve focused on tapping into the best TradFi strategies, from treasuries to CLOs to private credit - even exploring (and turning down) BDCs. Over the next few months, we’re going to start looking at DeFi yield strategies. DeFi yield worried us, due to risks like smart contract risk which were very difficult to hedge. However, after a lot of work, we’ve been able to lock down a number of strategies we are very excited about, and risk mitigation tactics which make these strategies very compelling.
To illustrate how we assess new DeFi strategies, we’re continuing our series of “open evaluations” with another live example. This time, we’re evaluating DeFi Lending—a crypto-native strategy offering over-collateralised, on-chain lending opportunities with instant liquidity and real-time transparency.
We invite all users to head to our governance forum where we’ve summarised our research into DeFi lending and opened the floor to discussion. Whether you’re curious, skeptical, or excited—we welcome your questions and perspectives. After 2 weeks of community feedback, we’ll move to a formal vote shortly to determine whether DeFi lending should be added to Noon’s list of permitted deployment strategies.
In Noon’s case, we would only lend stablecoins (USDC and USDT) into carefully selected pools, aiming to earn competitive, variable yields while avoiding price volatility on principal.
Why it’s attractive:
Yields: Stablecoin lending APYs in high-quality pools often range between 5–15%, depending on market demand.
Liquidity: In most pools, funds can be withdrawn instantly—subject to utilisation.
Transparency: Positions, collateral, and rates are visible in real time on-chain.
Some of the most prominent DeFi lending venues include Aave, Euler and Morpho.Our preliminary screening points to Euler and Morpho’s large-cap stablecoin pools as the most compelling fits—offering strong liquidity and competitive APYs within our stability-first mandate.
As with all potential deployment strategies, DeFi lending is being evaluated through Noon’s four-phase pipeline, which ensures every new asset is vetted through a rigorous and transparent lens.
1. Strategy and Asset Class SelectionWe begin by screening for assets that:
Offer stable and attractive risk-adjusted returns
Are liquid relative to our withdrawal needs
Can be monitored programmatically
Align with a crypto-native future
DeFi lending meets these criteria when focused on stablecoin supply into large, liquid pools. By constraining deployments to a percentage of “safe utilisation” below each pool’s kink rate (the utilisation amount at which point the interest rate drastically increases), we can protect instant liquidity.
2. Risk Assessment Framework ← You are here
This blog post marks the start of our second phase—open evaluation. We’ve published a summary of our risk assessment in the forum, covering market correlation, liquidity risk, credit (liquidation) risk, and smart contract considerations. We will continue this phase with a community discussion followed by a vote.
Key takeaway so far: Low market volatility risk due to stablecoin lending, but smart contract and liquidity dynamics require rules around position sizing. We encourage users to challenge or expand on this conclusion.
3. Execution Planning
If community feedback and further analysis suggest DeFi lending fits within our stability-first mandate, we will define:
Which pools are eligible
Deployment caps per pool and per protocol
APY thresholds — lending will only proceed if net returns exceed the T-bill rate after factoring in insurance costs, and the insurance cover meets our standards for payout reliability and coverage scope
Exit triggers based on utilisation, APY drop, collateral volatility, or changes in insurance availability
This ensures that any yield earned is not only attractive, but also protected against potential protocol failures or bad debt scenarios. Without appropriate insurance, this strategy will not move forward.
4. Testing & Scaling
We will begin with small-scale deployments into select pools with large liquidity. The position will be monitored actively, with real-time alerts on utilisation, APY and collateral health.
After a prolonged period of stable yield, scaling will follow. Again, without appropriate insurance against smart contract failures, this strategy will not move forward.
As Noon Capital grows, so does our commitment to community-led strategy selection.
As our governance token is now live, token holders can go beyond giving feedback—you have the power to vote (with sNOON) on whether we proceed with new strategies and asset classes, such as DeFi lending.
That means every new yield strategy, from private credit to on-chain primitives, will be surfaced transparently and decided collectively.
Your voice isn’t just heard—it’s counted.
Over time, this transition will move Noon from centralised intelligence to a decentralised, community-driven yield engine. Whether it’s lending on Morpho, tokenised T-bills, or new structured products, our direction is yours to shape.
We’re very excited to be dipping our toes into the DeFi Yield space, starting with DeFi Lending. While there are many more DeFi Yield strategies our team is researching, we feel DeFi Lending to be the perfect jumping off point.
DeFi Lending offers a compelling mix of yield, liquidity, and transparency—but like all strategies, it carries risks that must be carefully managed. With smart guardrails, insurance, and community oversight, it could become a valuable addition to Noon’s toolkit.
For the next 2 weeks, 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 DeFi lending becomes one of Noon’s permitted deployment strategies.
If you see a stronger pool, a smarter cap, or a hidden risk—we want to hear it. At Noon, the best ideas rise to the top.
Let’s build this yield engine together.
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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