Today we are extremely excited to announce that Notional V2 is live! Check out what we’ve built on our website. Ten months after we launched Notional V1 on Ethereum mainnet we are proud to put Notional V2 in the hands of our users and take a big step toward bringing the $100 Trillion fixed income market to DeFi.
We believe that Notional V2 will be the gold standard for lending and borrowing at fixed rates in DeFi because we have prioritized security, liquidity, and capital-efficiency.
- Security: Notional V2 underwent extensive internal testing and received three independent audits from ABDK Consulting, Certora, and Code Arena. We believe that our focus on security gives our users the confidence they need to place their capital in Notional.
- Liquidity: Notional V2 is launching with an aggressive liquidity mining program to incentivize LPs. 50% of the total NOTE token supply is allocated to liquidity incentives with 20% to be distributed in the first year.
- 100% Capital-efficiency: Notional V2 puts your collateral to work. Users can earn attractive returns on their capital by lending fixed or providing liquidity, and then use that as collateral to borrow against without giving up their returns.
This means that you can be confident that your funds are secure, that you can execute loans in large size at low slippage, and that you will get the most out of your capital. We believe that these qualities make Notional the best place in DeFi for users who want fixed rates.
How to use Notional V2 today:
- Fix your interest rate. Users can lend and borrow USDC and DAI at a fixed rate for up to one year, or lend and borrow ETH and wBTC at a fixed rate for up to six months.
- Provide liquidity and earn incentives. Liquidity providers can deposit DAI, USDC, ETH, and wBTC to earn interest, liquidity fees and NOTE incentives. LPs earn these returns by minting nTokens - Notional’s high-yielding, incentivized, freely redeemable ERC20 liquidity tokens.
- Do both at the same time. nTokens automatically qualify as collateral on Notional, so a user can provide liquidity with their collateral and then borrow against it without giving up any of their returns. For example, a user who wanted to borrow USDC against their ETH could mint nETH to earn interest, liquidity fees, and NOTE incentives, and borrow USDC at a fixed rate against it - all in one transaction. This gives users 100% capital-efficiency.
Notional’s functionality is simple, but powerful. We are proud to deliver this product to the DeFi community and look forward to what secure, liquid, and efficient fixed-rate lending will unlock.
The NOTE plays a critical role in the Notional system. NOTE holders can propose and vote on changes to Notional’s system parameters and the Notional smart contracts. If you want to contribute to the conversation around Notional governance and help shape the future course of the protocol, join us in discord.
The NOTE also helps to coordinate the Notional community through incentives. 50% of the total NOTE supply (100,000,000) will be used to incentivize liquidity providers. We recognize that the earliest liquidity providers will take the most risk and so we are front-loading the NOTE incentive distribution. Here is a tentative schedule for NOTE liquidity incentive distribution with a per-currency breakout for the first year:
- Year 1: 20,000,000 NOTE incentives
- USDC: 9,000,000 NOTE incentives
- DAI: 9,000,000 NOTE incentives
- ETH: 1,000,000 NOTE incentives
- wBTC: 1,000,000 NOTE incentives
- Year 2: 15,000,000 NOTE incentives
- Year 3: 10,000,000 NOTE incentives
- Year 4: 5,000,000 NOTE incentives
NOTE Airdrop Logistics
The Path Forward
The launch of Notional V2 is only the beginning. We have big plans for the future, and the Notional community will be working hard to deliver them in the coming months and years. Our plans cover future development work, protocol integrations, and collateral onboarding. If you want to contribute to Notional’s growth, jump in our discord and keep an eye out for the Notional grants program launch in a few weeks.
- Layer 2. Lots of people who want to use Notional are priced out of Ethereum. A layer 2 implementation that is secure and reinforces Notional’s liquidity is a high priority for us.
- Attractive and liquid fixed rate lending and borrowing opportunities add an important new primitive to DeFi. We are excited to partner with other protocols and businesses to offer fixed rate lending and borrowing to a wide range of users.
- nTokens are specifically designed to integrate well throughout the DeFi ecosystem. They offer users a high-yielding asset that is also very attractive collateral. We believe that nTokens are a very interesting asset for lending protocols and protocols that leverage DeFi-native yield-generating assets.
- Notional V2 is one of the only protocols that enable DeFi users to borrow at a fixed rate against their assets, and we want to take full advantage of the flexible collateralization framework that we have built. We plan to onboard a variety of different collateral types after launch.
Notional V2 marks a big step forward for DeFi. It’s taken years of hard work to get here, and we want to thank everyone in the Notional community for their support. We couldn’t have delivered Notional V2 without our early users. We look forward to the growth of Notional V2 and expanding our community. If you want to join us on this journey, follow us on twitter @NotionalFinance or hop in our discord. Let’s shape the future of DeFi together.
The Notional Team
Notional Finance Newsletter
Join the newsletter to receive the latest updates in your inbox.