Asset Class: Principal Tokens (PTs) Platforms Reviewed: Pendle (preferred), Spectra (optional) Underlying Assets: USDe, sUSDe (initially). Optional expansion into other high-quality, liquid protocols.

Resources Forum Discussion Proposal PT Primer

What Is PT Buying?

Pendle splits yield-bearing assets into two tradable components: Principal Tokens (PTs): Redeemable 1:1 for the underlying asset at maturity. Yield Tokens (YTs): Capture variable yield streams until maturity. By purchasing PTs at a discount, investors lock in a fixed yield. The PT APY reflects market expectations for future yields and gradually converges to 1.0 as maturity approaches.

For Noon, PTs are attractive because they combine predictable, fixed yield with deep liquidity. Deployment will be limited to PTs backed by highly liquid, trustworthy protocols with sufficient secondary market depth.

For more background, see our PT Primer.

Analyst Recommendation: ✅ Proceed with Conditional Deployment

Our analysts recommend adding PT buying to Noon’s permitted strategies, under strict safeguards:

• Maturity selection: Favor longer-dated PTs to reduce rollover costs and improve predictability.
• Position caps: Limit per-pool exposure to mitigate slippage and liquidity concentration risk.
• Hurdle rate: Deploy only where implied yield meaningfully exceeds T-bills.
• Monitoring: Automated alerts for PT price deviations, liquidity changes, and protocol-level risks.

Together, these controls deliver attractive fixed yields while preserving Noon’s mandate for low principal volatility.

Internal PT Exposure

Noon operates Pendle and Spectra pools for USN and sUSN, but will not buy PTs from its own pools. Doing so would create a circular loop that undermines collateral integrity. PT exposure will be restricted to external protocols and assets only.

Community Input

However, this decision is not ours alone. It is yours too. Hence, the vote to integrate PT buying or not will be open for 1 week to gather everyone’s opinion. Once the vote is concluded, we will take action per the results.

PT buying remains a compelling opportunity for stable, yield-generating deployment. With the proper safeguards, it can complement Noon’s broader strategy.

Time to cast your vote with $sNOON.