Managing Risk in Leveraged Vaults
Notional’s leveraged vaults allow users to get highly leveraged exposure to DeFi yield strategies. While leverage helps make great products, it also exposes Notional to risk. In this blog post I will demystify the risk management and parameter setting process behind leveraged vaults to show how we keep Notional
Why We're Choosing Arbitrum
With the launch of Notional V3, the Notional protocol will make a long-awaited debut on Layer 2. Launching on L2 has the potential to broaden the scope of who can use Notional, expand Notional’s leveraged strategy offering, and catalyze the protocol’s growth. In an ideal world where the
Forecasting rETH Yields
The ETH staking rate is the most important interest rate in crypto. It is the baseline for ETH returns that all other investments and yield opportunities are judged against. Given this importance, it’s helpful to understand what drives this yield and forecast what ETH staking rates might be in
LP Token Valuation Risks
Today, the vast majority of collateral held in DeFi lending protocols is in the form of vanilla tokens like ETH, stETH, wBTC and UNI. There aren’t many protocols that lend against LP tokens in addition to simpler collateral types. As a result, the risk management challenges of taking LP
Fixed vs. Variable Rate Leverage - Which is Better?
Leveraged yield strategies are relatively new products in DeFi that allow users to potentially earn higher yields by taking on leverage that have proven to be popular with DeFi power users. Notional’s leveraged vaults, leveraged staking strategies on Aave, and money markets like Gearbox and Sentiment that are specifically
DeFi Has a Yield Problem
DeFi has a yield problem. DeFi lending protocols can’t offer sustainable yields that are high enough to attract external capital and grow the space beyond its current niche. That’s because today’s major lending protocols provide limited utility for borrowers which results in low interest rates for lenders.
Notional V3 Leveraged Strategies
Notional V3 is the fixed rate lending protocol for power users. To better serve these users we are doubling down on leveraged yield strategies. We aim to be the best place for power users to maximize their yields with leverage by focusing on three things: * High leverage and high returns.
Vulnerability report - March 2023
On Monday March 21st, 2023, The Notional Team was alerted to a vulnerability in Notional V2 that would allow a well-capitalized hacker to drain protocol funds. We patched the vulnerability immediately, and all funds are safe. The whitehat will receive 250k USDC + 250k NOTE as a bounty. Patching this vulnerability
