Noon

Noon receives a C risk grade (45/100) from Hindenrank, where lower scores indicate lower risk. Moderate-high risk — Ethena-style delta-neutral yield stablecoin with proof-of-reserves transparency, but carries inherent CEX counterparty risk and vulnerability to prolonged negative funding rate environments Noon is a yield-bearing stablecoin protocol that lets users deposit USDT or USDC to mint USN, a stablecoin backed 1:1 by the deposited assets. The protocol deploys collateral into delta-neutral trading strategies (buying spot crypto while shorting the same amount in perpetual futures) to generate yield, with 80% of returns distributed to sUSN stakers. With approximately $31M in TVL, Noon follows a similar model to Ethena's USDe but with added transparency through live proof-of-reserves via Accountable. While the delta-neutral approach can generate attractive yields during normal markets, it carries significant counterparty risk from centralized exchanges and can become unprofitable during bear markets.

The key risks identified for Noon are: (1) Noon's yield comes from trading positions held on centralized exchanges. If an exchange fails (like FTX did in 2022), the collateral backing USN could be lost, causing USN to depeg from $1. (2) During bear markets, the delta-neutral strategy can lose money instead of generating yield. In that scenario, sUSN holders earn nothing and may face a rush to exit that strains protocol liquidity. (3) The protocol has no governance token yet and operates with centralized strategy management. Users trust the Noon team to manage trading positions and maintain USN backing responsibly.

Noon scores 45/100 across eight risk dimensions: Mechanism Novelty: 6/15, Interaction Severity: 10/20, Oracle Surface: 4/10, Documentation Gaps: 3/10, Track Record: 10/15, Scale Exposure: 3/10, Regulatory Risk: 4/10, Vitality Risk: 5/10. The highest risk area is Track Record at 10/15.

Among 116 rated Yield protocols on Hindenrank, Noon ranks #104 by safety (lowest risk score = safest). Its 45/100 risk score and C grade place it among the riskier Yield protocols.

Noon scores 10/15 on the Track Record risk dimension, indicating some history of security incidents or exploits. Higher scores reflect more severe or frequent incidents. Review the full risk report for details.