Notional is a decentralized protocol on Ethereum that facilitates fixed-rate, fixed-term lending and borrowing of crypto assets using a unique fCash mechanism, allowing users to trade cash for fCash at predetermined interest rates. This addresses the volatility of interest rates in the crypto market by providing predictable borrowing costs and stable returns for lenders over terms of up to six months.
Funding
$13.4M raised to dateRaised to date based on public sources. This may differ from the amount the company actually raised and is based only on what is publicly available on the internet.
Founders
Product
Problem
The volatility of interest rates in decentralized finance (DeFi) makes it difficult for lenders and borrowers to predict costs and returns, hindering effective financial planning and risk management. Existing variable rate protocols expose users to fluctuating rates, creating uncertainty and limiting the appeal of DeFi for more risk-averse participants.
Solution
Notional is a decentralized protocol that enables fixed-rate, fixed-term lending and borrowing of crypto assets on Ethereum and Arbitrum. It utilizes a unique fCash mechanism, allowing users to trade cash for fCash at predetermined interest rates, providing predictable borrowing costs and stable returns for lenders. Notional offers a range of products, including fixed-rate lending, leveraged vaults, and opportunities for liquidity providers to earn interest, fees, and incentives. By offering fixed rates, Notional allows users to lock in borrowing costs or lending yields for a specific period, mitigating the risks associated with fluctuating interest rates in the DeFi market.
Target Audience
Notional targets DeFi users seeking predictable interest rates for lending and borrowing, including individual investors, liquidity providers, and those interested in leveraged yield strategies.
Features
- Fixed-rate lending and borrowing of crypto assets with terms up to six months
- fCash mechanism for trading cash at predetermined interest rates
- Leveraged vaults for maximizing yield using leveraged strategies
- Opportunities for liquidity providers to earn interest, fees, and incentives
- Support for multiple networks, including Ethereum Mainnet and Arbitrum
- Open-source smart contracts that are thoroughly tested and audited
- Integration with DeFi analytics dashboards like Dune Analytics and DeFi Llama