# Notional Finance Quarterly Review: Q1 2022

Notional accomplished a lot in Q1 2022. The protocol won the majority share of the fixed rate lending market, laid the foundations for continued success through protocol integrations, and increased the utility of the NOTE token with the NOTE staking module.

Notional accomplished a lot in Q1 2022. The protocol won the majority share of the fixed rate lending market, laid the foundations for continued success through protocol integrations, and increased the utility of the NOTE token with the NOTE staking module. Notional’s loan volumes were orders of magnitude larger than our competitors and established our position as the leading fixed rate protocol in DeFi.

The success of the business in this quarter also helped us establish integrations with some of the leading protocols in DeFi like Yearn and Index Coop. These integrations, among others, provide access to scalable and sticky demand for fixed rate lending on Notional. With these integrations in place, Notional will be able to smoothly scale up as quickly as we can grow the borrowing side of the business. Driving borrowing demand will be a key focus area for Q2 as Notional begins to onboard new collateral types and stablecoins.

In addition to capturing the majority of DeFi’s fixed rate lending market, Q1 saw Notional launch the NOTE staking module. This module allows NOTE holders to earn rewards tied to the performance of the protocol while simultaneously contributing to NOTE liquidity and to the security of users’ funds on the protocol.

The NOTE staking module is a major step toward delivering value to NOTE holders, increasing the utility of NOTE within the Notional ecosystem, and providing insurance to user funds on the platform. We look forward to building on our success in Q1 and delivering more strong quarters to come.

## Total Value Locked (TVL)

Notional’s TVL started the quarter at $526M and slowly decreased as crypto markets turned bearish and as the NOTE price decreased from$1.86 to $1.13. As of March 31st, Notional’s TVL sits at roughly$380M allowing borrowers and lenders to trade large amounts of fCash (Notional’s zero coupon bond instrument) at low interest rate slippage.

Importantly, changes made to Notional AMM curves now allow borrowers and lenders to trade with 4X better slippage than with previous curves, thus requiring less liquidity from Notional LPs.

In Q1, Notional facilitated $190.4M in total trading volume. Trading volume increased each month with Notional facilitating$10M of volume in January, $67M in February, and$112M in March.