Notional Finance is a startup focused on fixed-rate crypto loans launched in 2021. Since announcing a $10 million Series A round on April 30 of the same year, it was led by Pantera Capital, with participation from venture capital firms such as Parafi, 1Confirmation, Spartan Group, Nascent, and Nima Capital. Notional Finance used this financing to actively build its team and promote the continuous optimization of its products and services.
As of now, Notional Finance's total deposits have reached $40.62 million, total outstanding debt is $18.2 million, and the number of active accounts is 1,259. These data fully demonstrate its influence in the DeFi field and its rapidly growing user base.
In the latest development, Notional Finance announced that its V3 version has been launched on Arbitrum on November 6, 2023. Notional V3 supports lending of 12 assets and plans to launch more new features, including the addition of 3 new Aura leveraged vault strategies, as well as LINK, UNI and LDO as new collateral. This move will further enhance Notional Finance's product diversity and market competitiveness.
The latest data shows that Notional V3 has shown significant growth in reserve and cumulative user numbers on various dates. Especially in early July 2024, its reserve reached a new peak, and the number of accumulated users also rose sharply in a short period of time, exceeding 10,000. These data not only reflect Notional Financeâs steady development, but also reflect the marketâs high recognition of its products.
So, how does Notional Finance continue to thrive in the competitive DeFi market?
Notionalâs user base began to surge at the beginning of this month, heralding a better start?
As one of the oldest tracks in the crypto space, the DeFi track has not performed well in this bull market. According to data, the overall increase of the DeFi sector in the past year was only 41.3%, far behind the market average of 91%, and even behind Ethereum's 75.8%. Data from 2024 also showed that the DeFi sector as a whole fell by 11.2%, and its performance was still poor. However, against the backdrop of a sharp drop in the price of altcoins, the DeFi sector, especially the leading projects, may have ushered in the best layout moment since its birth.
In such a market environment, Notional Finance, a fixed-rate crypto loan protocol, has demonstrated its unique advantages and market appeal. On November 6, 2023, Notional Finance announced that its V3 version has been launched on Arbitrum. Notional V3 supports lending of 12 assets and will soon launch more new features, including the addition of 3 new Aura leveraged vault strategies, as well as LINK, UNI and LDO as new collateral. This series of innovative measures not only enriches its product line, but also further enhances its competitiveness in the DeFi market.
The latest data shows that Notional V3 has shown significant growth in its reserves and cumulative users on various dates. Especially in early July 2024, its reserve reached a new peak, and the number of accumulated users also rose sharply in a short period of time, exceeding 10,000. These data not only reflect Notional Financeâs steady development, but also reflect the marketâs high recognition of its products.
In addition, Notional Finance's market performance is also impressive. Its pCash market utilization rate reached 65.39%, the borrowing rate was 12.17%, and the supply rate was 6.63%. In general, the total supply of Notional V3 is $2,032,874.44, while the total debt is $1,329,371.63. The protocol fee in the past day was $333.57, and the cumulative protocol fee reached $214,052.33. These data show that Notional Finance has achieved remarkable results in optimizing user experience and increasing market participation.
Concerns about market fluctuations enable them to better plan and manage their finances. User John said: "Notional Finance's fixed-rate loan helped me maintain the stability of my assets during market turmoil. I no longer worry about the risks caused by sudden interest rate changes." In addition, after the launch of Notional Finance's V3 version, the user experience has improved significantly improved. Newly added asset-backed and leveraged vault strategies provide users with more choices and flexibility. Sarah, a long-term user, commented: "The launch of the V3 version and the introduction of new features have made my operations on Notional Finance more convenient and efficient. I am very much looking forward to more innovative features in the future."
Overall, Notional Finance has performed well in terms of user demand and market feedback, and its position and influence in the DeFi market are also increasing. In the future, Notional Finance is expected to continue to lead the development of the DeFi fixed-rate lending market and provide users with more secure, efficient and diversified financial services.
Notional adopts a fixed-rate lending model and has more innovative functions, making it a standout in DeFi
Notional Finance has taken a place in the DeFi market mainly due to its unique advantages and advanced technical framework. As an innovative platform focusing on fixed-rate crypto loans, Notional Finance provides a stable and reliable lending environment, enabling users to maintain financial stability amid market fluctuations.
First of all, the biggest advantage of Notional Finance lies in its fixed-rate lending model. Unlike the variable-rate lending offered by most DeFi platforms, Notional implements fixed-rate lending through the fCash token mechanism. The fCash token is defined by the associated cryptocurrency and the expiration date, allowing users to determine the interest rate in advance when borrowing, avoiding interest rate uncertainty caused by market fluctuations. This mechanism greatly reduces the risk of borrowing and attracts a large number of risk-averse users.
Secondly, Notional Financeâs technical framework also brings significant advantages to it. Its V3 version introduces several innovative features to further enhance the platformâs flexibility and user experience. For example, the V3 version supports lending and borrowing of 12 assets and adds 3 new Aura leveraged vault strategies, allowing users to utilize capital more efficiently. In addition, Notional also includes tokens such as LINK, UNI and LDO as collateral, enriching users' choices.
Notional's technical architecture uses an advanced automated market maker (AMM) model to ensure the platform's liquidity and interest rate stability. By deploying multiple liquidity pools between fCash and supported assets, Notional achieves efficient fund management and risk control. Its customized AMM function can dynamically adjust curve sensitivity, reduce slippage, and ensure that deposits and withdrawals have minimal impact on the actual interest rate.
In addition, the security of Notional Finance is also fully guaranteed. The platform conducts rigorous audits and verifications during the code writing and testing phases to ensure the reliability and security of the protocol. Notional cooperates with leading security auditing companies such as APT and Certora to further enhance the security of the system and user trust through means such as invariance verification and code arena.
Overall, Notional Finance has established a good reputation in the DeFi market with its unique fixed-rate lending model, advanced technical framework and strong security. In the future, Notional will continue to innovate and continuously optimize its products and services to provide users with more secure, efficient and diversified financial solutions.
Multiple incentive plans are launched simultaneously, and users can profit by grabbing Notional wool
In order to further enhance user experience and market participation, Notional Finance has launched a number of incentive programs. These programs are designed to attract more users to use Notional's products and reward users who provide liquidity, borrow, and use leverage strategies on the platform.
ARB Incentive Program Overview:
Starting from June 12, 2024, Notional launched a 12-week ARB incentive program on Arbitrum, distributing a total of 250,000 ARB. The program is mainly aimed at the following categories of users:
1. Liquidity Providers (LPs): Provide liquidity in Notionalâs fixed-rate market and earn interest and transaction fees. Supported assets include USDC, ETH, USDT, rETH, and wstETH.
2. Lenders: Earn variable or fixed interest rates by depositing tokens and can use these tokens as collateral for borrowing. Supported assets include USDC, ETH, USDT, DAI, FRAX, and wstETH.
3. Borrowers: Borrow funds at variable or fixed interest rates. Supported assets include USDC, USDT, DAI, and FRAX.
4. Leveraged Vault Users: Obtain leveraged returns through Notionalâs unique leveraged vault strategy.
Points plan and distribution method:
ARB incentives will be distributed monthly through a points program divided into three four-week seasons:
Season 1: 55,000 ARB distributed, starting on June 12, 2024
Season 2 and 3: 60,000 ARB each
Users earn points based on each dollar of assets held and the product's Boost factor. For example, if a user deposits $200 in a 2x Boost product, he will earn 400 points per day. Points are converted into ARB allocations at the end of the season, and the amount of ARB a user earns is directly related to the proportion of points he earned during the season.
way of participation:
1. Visit the Notional platform: Visit Notional Finance.
2. Deposit assets or borrow: Choose to deposit supported assets on the platform, provide liquidity, or borrow.
3. Participate in the points program: View the multiplication factors and details of each product on the points program page.
4. Receive rewards: After each season, players can receive corresponding ARB incentives based on their points.
Through these incentive programs, Notional Finance provides users with additional income opportunities, enhancing the platform's activity and user stickiness. In the future, Notional will continue to introduce more innovative measures to promote the development of the DeFi ecosystem.
