About
sUSN is a yield-bearing stablecoin launched by Noon Capital. sUSN generates yield by deploying capital in delta-neutral strategies and RWA-backed assets.
Categories
Risks
Historical Data
FAQ on Mechanisms and Risks
Can I incur a loss?
Yes, outside of the smart contract risk, the protocol custodies the assets with external parties.
How can I withdraw?
Unstaking to USN (7 day withdraw cooldown).
How can I verify the backing?
The reserve custody venues are displayed on the transparency dashboard and the data is verified using the Accountable platform.
What exactly is the strategy?
The protocol's algorithm decides on whether to allocate the funds into the fixed-rated RWA assets or into delta-neutral strategies, where both a long and a short position are taken in a given asset in order to extract a funding rate difference.
How does the protocol cover for other exposures like gamma (caused by hedging mismatches)?
The documentation does not specify how gamma exposures are managed. It mentions a Noon Insurance Fund (10% of revenue) to protect users, but there’s no clear mechanism for addressing gamma risks or hedging mismatches, leaving this as an unaddressed vulnerability.
Can the yield decrease in the long term?
Yes, if the delta neutral strategies' yield basis decrease, the fund may still allocate the funds into the RWA assets. However, should the global rates decrease (as was the case during the 2010s, where central banks employed a zero interest rate policy), the RWA-based returns may drop as well.
Proof Of Reserves
Data on the reserve balance from onchain, asset custodians, and exchanges is retrieved directly and displayed on the transparency dashboard using cryptographic proofs powered by the Accountable platform.