Yield-bearing stablecoins and memecoins have dominated web3 narratives in the last year, seeing massive TVL inflows and user growth. Noon is the latest yield-bearing stablecoin, which aims to adopt the best of both of these phenomena, and launched its Public Beta on Jan 27th.
Promising precedents
Aiming to be the most intelligent and fair yield-generating stablecoin, Noon offers competitive stable returns to its users by intelligently allocating its collateral between different delta-neutral yield strategies. This allows users to deploy capital to Noon and forget about it— comfortable that their funds will continuously generate the highest stable yields in web3.
Today, this is hard to refute - when comparing the raw returns of comparable protocols, Noon’s 7-day APY of 17.51% is significantly above those of Ethena (sUSDe: 10%) and Resolv (USR: 6.6%, RLP: -4.2%) [as of Feb 4, 2025].
And taking a page from memecoins’ books, Noon aims to be the fairest stablecoin, with the largest user airdrop in the stablecoin space. 65-80% of the Noon governance token (NOON) will be distributed to users—this is made possible by Noon’s decision to not accept funds from angels, VCs, or any other investor and remain entirely self-funded.
Comparing Noon’s 65% community allocation, which can be increased to 80% if its Trust token allocation is entirely granted to users, to comparable protocols is not surprising. Ethena’s token allocation shows a 30% distribution to users - which is fairly standard for many other stablecoin protocols. Noon’s 65-80% user allocation does seem more similar to memecoin tokenomics, with the advantage of actual revenues being currently generated.
Following in the footsteps of the spectacular success of Hyperliquid, Noon seems to have adapted a similar playbook to a different segment of the web3 market—a successful, profitable, proven business model with a fair tokenomic model. Early signs look promising—over $30m in TVL in just a few weeks during a private beta, and consistent, above-market yields.
A fair, transparent design
“Our team has been obsessed with offering the most value and best experience to our users,” says founder and CEO Arpan Gautam. Beyond high returns and the largest user airdrop in the space, Noon points to its transparency, by being the first stablecoin to offer a live, independent Proof of Solvency. Noon is the first yield-generating stablecoin to partner with a third-party data analytics firm to publicly display on- and off-chain capital reserve data on a real-time basis—all directly from exchanges and asset custodians (not self-reported).
Gautam continues:
“While we know that yield-bearing stablecoins have seen a lot of TVL inflows in the last year, we know that some users remain skeptical. We wanted to make our protocol as transparent as possible—to give users maximum visibility and comfort with Noon.”
The logical next destination to assess transparency is Noon’s rewards programme. Protocols have, at times, been notoriously opaque regarding how points are allocated to users before their Token Generation Event (TGE). Noon’s rewards programme seems to be a pleasant surprise - both simple and clear with a small number of governing principles which users can easily understand.
What’s next
The launch of Noon’s Public Beta on Jan 27 saw Noon open the doors of its app to its community. With high-profile partnerships with the likes of ZKsync Era and Sophon, and inclusion into the selective Ignite programme, which promises large token rewards to users of participating protocols, Noon looks to be in a strong position. And Gautam assures us that more partnerships and announcements are to come in the coming weeks and months.
As the DeFi sector continues to expand, Noon’s approach to bridging stability and performance could set the tone for the next generation of financial tools. We look forward to seeing how Noon navigates this ever-evolving space.
How to get involved
Noon’s Public Beta is accessible to all users looking to explore its offerings and choose their own yield adventure. Participants can acquire USN for high governance token rewards and sUSN for market leading stable yields.
The team’s commitment to transparency and fairness ensures that this is just the beginning of an exciting journey for the Noon community and the wider DeFi ecosystem.
- Website: www.noon.capital
- Telegram: https://t.me/nooncapital
- X: https://x.com/noon_capital