# Notional Monthly Update 🗓️ June 2022

Welcome to the latest edition of the Notional Monthly Update! You can also follow the latest news on Twitter or join the Notional community on Discord. ‌‌‌

🗒 Summary Notes ‌‌‌
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‌‌‌-$500M in loan volume milestone hit in May - now up to ~$550M end of June
-New NRC: Reduce LP incentives by 15%
-Market notes from Teddy
-New product audits update
-Historical data exporter tool now live

‌📊 Monthly Protocol Stats‌‌‌
‌‌‌‌‌‌
‌‌-TVL: $86,304,930 (-58% vs May) ‌-Total Loan Volume:$61,200,000 (+360% vs May)
‌-Protocol Revenue: $56,343 in trading fees (+58% vs May) and$68,090 in COMP incentives (+82% vs May)
‌‌‌-Current Lend (DAI 12m) APY: 5.15%
‌‌-Current LP (USDC) APY: 7.88% (-.07% variable + 7.95% NOTE)‌‌‌

## A Note From Teddy on Market Volatility

Peak fear has passed. Just a few weeks ago it felt like every new day brought fresh and shocking revelations of some insolvency, or some overlooked systemic risk that was in the process of imploding, or some other thing that was going to send it all to zero. We've been through a lot.

But my guess is that the tide has turned. Yes, further CeFi lender insolvencies could crop up. And yes, there could be additional forced liquidations from these guys. But I think that's more or less been priced in. I wouldn't expect more of these kinds of headlines to produce further waves of panic. My guess is that what we've got ahead of us here from a market's perspective is just a protracted period of time that's going to feel like stagnation.

So what does this all mean for DeFi rates? For the foreseeable future, more of the same I'm afraid. I wouldn't expect rates to move much from here. DeFi might just be about to get *gasp* boring for a while.

Ultimately I think the question that remains to be seen is, are users willing to lend their money into the crypto ecosystem, either via DeFi or CeFi, at unsubsidized interest rates? Because the reality is that the unsubsidized rate of return in crypto might actually be far lower than users have come to expect. The capital is still in the system for now, but as this CeFi lending drama plays out and we extend further into a bear market, we'll see how much of it sticks around.

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And now, for a little hopium:

## fCash Wrapper out of Audit -> Levered Vaults Under Audit

Bear markets are for building, but truth be told our pace hasn't changed. We are continuing to ship, and we're excited for our latest tool to be out of the Code Arena audit process: the fCash wrapper. The wrapper bridges the fCash ERC1155 standard to ERC20 and ERC4626 tokens. This is a key tool that will allow integrations to happen at a much quicker pace. For a refresher on the importance of fCash in the Notional system, read up here.

Among many others, here are a few potential use cases on the (near) horizon:

• Integration with Set Token infrastructure to build the FIXED product suite.
• ERC4626 allows dead simple lending for DAOs and yield aggregators to get exposure to high yielding fixed income.
• Trading fCash on Uniswap v3 or Balancer (Balancer fCash boosted pool anyone?)

Separately, our levered vaults collateralized yield strategies product just went under audit on July 4 - we'll have more news in the next update when we have a clearer timeline for release!

## New Historical Data Exporter Tool

Notional has a new feature on the info dashboard. To celebrate and help get the word out, we launched a Notional Blitz bounty to encourage web3 data analysts to check it out and explore interesting data, trends, & correlations in the fixed rate market. We'll be sharing those on social media over the next few weeks, so keep your eyes out for them.

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Check out an example of how to use the tool below!