Notional Finance
Notional Finance is a protocol on Ethereum that facilitates fixed-rate, fixed-term crypto asset lending and borrowing through a novel financial instrument called fCash
What is fCash ?
- fCash tokens are the building blocks of the Notional system. fCash are transferable tokens that represent a claim on a positive or negative cash flow at a specific point in the future.
- fCash tokens are always generated in pairs: assets and liabilities. Assets and liabilities always net to zero across the Notional system..
NOTE Token
NOTE is an ERC-20 token that governs the Notional protocol. NOTE holders can propose, vote on, and implement changes to Notional system parameters and smart contracts. Each NOTE holder gets one vote per NOTE that they hold.
NOTE Holders can:
- Setting liquidity fees
- Setting collateral haircuts
- Onboarding new collateral types
- Activating new maturities for lending and borrowing different assets
- Determining liquidity incentive emission rates for different currencies
- Proposing and evaluating upgrades to the protocol
Who created Notional?
Notional was developed and launched in early 2020 by a team of stakeholders with expertise in technology, trading, security, and design.
Why does Notional matter?
Fixed-rate financing is how financial markets operate. Fixed interest rates provide certainty and minimize risk for market participants, and this is why the majority of U.S. debt is issued using fixed rates. Notional brings fixed interest rates to the decentralized financial system on Ethereum and gives crypto users the same access to stable financing.