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Overview

Noble Dollar (USDN) is a yield-bearing stablecoin, fully backed by short-term U.S. Treasury Bills. Unlike traditional stablecoins, USDN holders earn Treasury yield by holding the token in their wallet and manually claiming the accrued rewards.

USDN is an extension of $M of the M0 protocol. M0 is a permissionless platform built on Ethereum for the purpose of issuing application-specific stablecoins. Each $M token is backed by overcollateralized U.S. Treasury Bill reserves. Because USDN is an extension of $M, the collateral backing $M extends to USDN as well.

What sets USDN apart from other yield-bearing stablecoins is its feature of Composable Yield, which allows the integrators of USDN (and not the issuer) to decide who gets the rewards and how they're used.

How USDN Works​

By locking $M on Ethereum through M0's Portal bridge (powered by Wormhole's Native Token Transfer), Noble can mint USDN on-chain and programmatically direct the underlying rewards to its holders on Noble and other integrators.

USDN uses a rebasing mechanism whereby a global index increases as Treasury rewards accrue. When the index updates, new tokens are minted and made available for users to claim. Users must manually claim their accumulated rewards to see their balance increase.

Key Features​

  • Native Rewards: Earn yield from short-term U.S. Treasury Bills.
  • Composable Rewards for Integrators: Stream cross-chain rewards from Noble to your network via IBC or Hyperlane.
  • Treasury-Backed Collateral: 102% overcollateralized by short-term U.S. Treasury Bills (collateralization ratio is a governance controlled parameter).
  • Developer Sovereignty: Full programmatic control over rewards allocation on your network.

Use Cases​

Integrators​

Integrators can be blockchain networks, DeFi protocols, or applications that incorporate USDN into their ecosystems to provide yield-bearing functionality to their users. Use cases include:

  • Automatically distribute Treasury rewards to validator sets.
  • Stream rewards to DAO treasuries.
  • Pass rewards directly to users.

Holders​

USDN holders include end-users, institutions, and protocols that hold the token for yield generation. They can:

  • Earn risk-free rewards from U.S. T-Bills.
  • Deposit USDN into the Points Vault to accrue points while foregoing rewards. Points are redeemable for the $NOBLE token once Noble AppLayer launches. Read here to learn more.
  • Deposit USDN into the Hyperliquid Managed Vault [Coming Soon!].