Notional Fixed Rate Update πŸ—“οΈ November 2022

Teddy Woodward
Teddy Woodward

*Leveraged Vault Beta RESULTS* Welcome to the latest edition of the Notional Monthly Update! Β Follow the latest news on Twitter or join the Notional community on Discord. β€Œβ€Œβ€Œβ€Œβ€Œβ€Œ

β€ŒπŸ—’ Summary Notes β€Œβ€Œβ€Œβ€Œ

β€Œβ€Œ-Leveraged Vault Private and Public Beta Resultsβ€Œ
β€Œβ€Œβ€Œ-Playlist: Youtube videos from AMAβ€Œ
β€Œβ€Œ-Notional Blitz #7 Deadline: Dec 9β€Œ
β€Œ-Read: Backgrounder on Bal/Auraβ€Œ

β€Œβ€ŒπŸ“Š Monthly Protocol Statsβ€Œβ€Œβ€Œβ€Œβ€Œβ€Œ

β€Œβ€Œβ€Œβ€Œβ€Œβ€Œβ€Œβ€Œ-Dec 1. TVL: $64,742,000β€Œ
β€Œβ€Œ-Nov. Loan Volume: $25,519,000 (+226% vs Oct) β€Œ ~$3M of borrowing from leveraged vaults
β€Œβ€Œ-Protocol Revenue: $16,628 in trading fees (+197% vs Oct) and $29,194 in COMP incentives (-10.3% vs Oct). Total: $48,815β€Œ
β€Œβ€Œβ€Œβ€Œβ€Œβ€Œ-Current Lend (ETH 6m) APY: 6.3%β€Œβ€Œ
β€Œβ€Œβ€Œβ€Œβ€Œβ€Œ-Current LP (ETH) APY: 6.89% (1.92% variable +4.97% NOTE rewards)β€Œβ€Œ

β€Œβ€ŒLeveraged Vaults Beta Results

The rollout of leveraged vaults has been a resounding success, with great feedback from the community. With 2499 of 2500 ETH capacity used in about a week after the public beta launch, the impacts on the greater Notional ecosystem can be seen in a few (expected) places:β€Œ

β€ŒIncreased vault usage means that more users are borrowing $ETH, which drives up ETH interest rates. In fact, the 6M lending APY is now consistently above the average staking rates, making it an extremely attractive option for lenders to earn predictable yield. β€Œ

Additionally, ETH LPs on Notional are seeing the increased activity in the pools generate more variable returns, which has boosted the APY to around 7%.

Perhaps most importantly? Leveraged vault users are currently earning HIGH APYs:

Source: @sashimiboi

While these benefits were expected, it is still great to see them playing out in real time. As mentioned in our launch post:

"Leveraged vaults will change the dynamics of Notional’s lending markets and improve returns for all of Notional’s users, not just the users who directly use the vaults.

-Lenders will get access to higher interest rates due to the increased borrowing demand driven by leveraged vault users.
-Liquidity providers will earn more fees from the increased usage.
-The protocol will earn more revenue from transaction fees and reduce its dependency on liquidity incentives because organic profitability for LPs will increase."

Increased capacity for leveraged vaults is coming this week! Stay tuned on Twitter for all capacity announcements!β€Œ

β€Œβ€ŒLeveraged Vault AMA Recap

ICYMI: We've created a quick recap playlist with clips of the main questions for the leveraged vault AMA session held on November 22. You can also find the full 45mn video here. β€Œ

As always, if you have more questions, don't hesitate to reach out in our Discord!β€Œ

Notional Blitz #7 - Deadline Approaching!

The mission? Create an explainer in any format that helps answer any of these important questions: What are leveraged vaults, why are they special, who are they for and where can they find them (only on Notional of course!). All content should be factual, original and in your own voice.

Potential examples include:

  • Infographics, Twitter thread, Youtube video, Dune dashboard, Blog/Medium post, Meme, etc.

The reward?β€Œ
β€ŒTop prize: 2000 $NOTEβ€Œ
β€ŒLayer 3 top submission: 1500 $NOTEβ€Œ
β€ŒHonorable mention: 500 $NOTE

Find all the details and how to submit on our Notional Blitz Community Page!β€Œ

β€Œβ€ŒAbout Notional FinanceπŸ“ˆ

Notional is the #1 Ethereum-based protocol for borrowing and lending at fixed rates and fixed terms. With more than $650M in total fixed rate lending volume, Notional is now a top 10 lending protocol providing core DeFi infrastructure. β€Œβ€Œ
β€Œβ€ŒNotional’s latest product launch, leveraged vaults, is slated for Q3 2022. A new DeFi primitive built on fixed rate borrowing, leveraged vaults execute specific yield strategies while collateralizing the vault assets, allowing users to maximize capital efficiency by taking up to 10x leverage.

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 $675M in total lending volume.

To find out more, follow Notional on Twitter @NotionalFinance, subscribe to the newsletter, join the Discord, or check out the website to learn more.β€Œβ€Œβ€Œβ€Œβ€Œ


Teddy Woodward

Co-Founder and CEO