Notional Finance

What is Notional?

Notional is a decentralized finance (DeFi) protocol built on Ethereum that enables fixed-rate, fixed-term crypto asset lending and borrowing. The protocol is powered by fCash, a financial instrument that facilitates predictable yields and obligations.

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Recent Video Interview

Main points of the interview:

• Notional Finance is a fixed-rate lending protocol on Ethereum.
• Notional enables fixed-rate borrowing and lending through fCash tokens, simplifying the process.
• New feature: nTokens streamline liquidity provision for users.
• Challenges include low borrowing demand, mitigated by the upcoming leveraged vault product.
• Partnerships, like with Balancer and Aura, drive growth and liquidity.

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Prime Money Market

The prime money market allows variable-rate lending and borrowing with a unique interest rate model.

• Optimizes capital efficiency
• Offers liquidity for over-collateralized borrowers
• Interest rates based on pool utilization

fCash Tokens

fCash tokens represent future obligations or assets and are key to Notional's fixed-rate offerings.

• Transferable and tradable before maturity
• Similar to zero-coupon bonds
• Powers fixed-rate borrowing and lending

nTokens and Governance

nTokens provide passive liquidity provision across all pools.

• Redeemable at any time
• Used as collateral for borrowing
• NOTE token governs protocol changes and treasury management

Some Other Coins in the Fixed Interest Category

• Saffron.finance: a peer-to-peer protocol allowing users to customize risk and return profiles.
• 88mph: a fixed interest rate lending protocol offering fixed yield and MPH tokens.
• Pendle: a decentralized protocol for trading future yields from yield-bearing assets.

Meet the Team

The Notional team consists of experts in finance, blockchain, and design, including:

• Teddy Woodward, Co-Founder & CEO
• Jeff Wu, Co-Founder & CTO
• Pierre-Yves Gendron, Risk Analyst
• Isaac Petsch, UX/UI Designer
• And more...

Interest Rate Model

Notional employs a two-kink interest rate model to determine borrow rates:

• Rates are based on market utilization
• Kink1 and Kink2 parameters adjust the curve
• Optimized for capital efficiency and predictability in borrowing costs

Project Development

Notional has launched leveraged Pendle PTs, providing new opportunities for yield generation.

• Up to 70% yield on USDC and 30% on ETH
• Leverage strategies enhance returns
• Automated process for depositing, borrowing, and purchasing PTs
• Potential for high APY based on PT yield and borrow rate

Notional Finance Price Analysis

As of November 24 2024 Notional Finance has a marketcap of $2.1M. This is {{percentagefromath}} from its all time high of $23.42. In terms of its tokenomics, there's a total supply of 99M with 48% currently outstanding. Keep in mind Notional Finance has a fully diluted value of $4.4M which many investors might interpret as overvalued.

Of course, don’t trust price predictions alone, always check the Coinrotator token screener to follow the trending market.