🗒 Summary Notes
-YEARN + Notional Integration
-Read: How to beat the recursive lending rate
-Notional at ETH Denver
-$NOTE Staking Module Update
📊 Monthly Protocol Stats
-TVL: $472,831,477 (+37%)
-Total Loan Volume: $67,617,187 (+660%)
-Protocol Revenue: $248,682 (+9%)
-Current Lend (USDC 6m) APY: 7.512%
-Current LP (USDC) APY: 6.04% (.47% variable + 5.57% NOTE)
Yearn + Notional = Leveled up Yield Strategies
If you've been following our Twitter, you may have noticed the uptick in our whale alerts and loan volume last week. In addition to onboarding a bunch of new lenders, Yearn has allocated 15,000,000 USDC and 15,000,000 DAI to fixed-rate lending strategies on Notional. Yearn is using Notional's fixed rates to boost and stabilize their returns while also making them less dependent on DeFi token prices.
If you're not familiar with how Yearn vaults work, here's the explanation from their website: "Vaults are a way to use technology to help manage your holdings. You choose the strategy that best suits you, deposit into that vault, and Yearn tech helps maximize yield through shifting capital, auto-compounding, and rebalancing. Custody, and responsibility, for your holdings remains yours. You can withdraw anytime."
Vaults can help minimize gas costs of using various protocols and enable individual users to take advantage of several yield strategies in one contract interaction. We can't wait to see what other ways the Yearn team comes up with to deepen the integration with our fixed rates. Read the full announcement.
Notional at EthDenver 2022
Notional was a proud sponsor of this year's wildly successful EthDenver conference. Members of the core team networked with other protocols to explore further integrations and future cooperation and we've been thrilled with the response to the core infrastructure Notional is building and by how many people approached us wanting to find ways to work together.
Our CEO Teddy also spoke on a panel about the evolution of institutional adoption of crypto - check it out below!
And finally, the rest of the team got together for the FIRST time IRL for 2 days of (mostly sunny) skiing and bonding near Denver at Winter Park.
$NOTE Staking Module Audit COMPLETE
We're happy to report that the audit for the staking module has wrapped up, and we are working on the final UX and a few other finishing touches. We are aiming for a release before the end of the month and will update with a date when we are a bit closer. We appreciate everyone's continued patience!
ICYMI, the staking module will enable NOTE holders to earn returns on their tokens while simultaneously providing liquidity for NOTE and insurance for funds on the protocol. Part of the protocol's revenue will be used to buy back NOTE and distribute it to the sNOTE holders as rewards.
Why Notional Beats Recursive Lending
We recently released a research report detailing the most common recursive lending strategies on Aave/Compound and took a look at how those rates stack up against simply lending fixed on Notional at a fixed rate. Spoiler alert: Notional wins.
We show that given current market conditions, there are simpler, and more rewarding alternatives for DeFi users that are uncorrelated to token prices. One of these alternatives is fixed rate lending on Notional Finance. The latter is even more compelling in the DAI pool, as Compound returns have been historically lower versus USDC. Lending on Notional Finance increases on average your lending returns by 4 to 5% based on current prices.
Read the full report here.
Memes of the Month
🗞️Notional in the News
A roundup of Notional media mentions and appearances by the core team.
About Notional Finance📈
Notional is the first decentralized, Ethereum-based protocol for borrowing and lending at fixed rates and fixed terms. With variable rate lending, DeFi can only serve a small segment of the crypto lending market because variable interest rates don’t provide the certainty that lenders and borrowers require. Notional fixes this by creating a true market for lenders and borrowers that empowers individual investors, business owners and institutional investors.
After raising a $10 million Series A in May 2021 from some of the top VC firms, including Coinbase Ventures, Notional’s protocol was relaunched on 11/1 with a host of new features as well as the NOTE governance token. Notional is now a top 10 DeFi lending protocol, with more than $450M in total value locked.
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