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$DAI is not controlled by any centralized entity. The stablecoin is maintained by the Maker Protocol trough @oasisdotapp, with collaboration of the @MakerDAO governance.
Want to see a real-world use case for #crypto fixed rates?
Imagine a fintech app like Wealthfront hooking up their vast user bases to fixed rate products, with notional.finance fixed rates providing the yields under the hood...
2/ This is the future of fixed rates!
Whether you want fixed rates for your own portfolio, these stable rates move #DeFi forward, which benefits EVERYONE.
The ability to plan future cash flows / calculate capital costs for the long-term = new use cases, new users.
3/ What comes next then?
Maybe protocols & #DAOs use fixed rates to borrow against their treasuries to fund operations & expansion!
This is but a taste of what’s to come, & soon enough Notional’s fixed rate pools with deep liquidity may become base infra for fueling DeFi.
2/ Notional’s users borrow & lend via the protocol’s native liquidity pools.
As such, liquidity providers (LPs) are central to Notional. Yet the project’s V1 system required LPs to *actively* manage their positions.
Here’s where Notional V2 nTokens come in!
3/ nTokens are high-yield, low-touch ERC20 LP tokens.
✅ They optimize for interest via underlying deposits of Compound cTokens, e.g. nDAI via cDAI.
✅ They offer LPs a fully passive experience. No active management required!
1/🍇DeFi Pulse Drop: @NotionalFinance🍇
Why is 90% of debt in TradFi issued at fixed rates, but 90%+ of DeFi is still working with volatile, variable rates?
Fixed rates haven’t taken off yet in DeFi, but that’s likely to change with Notional v2. 🧵⬇️
2/ Unlike many other fixed rate protocols, Notional serves both lenders *and* borrowers.
Because borrowers are often willing to pay a premium for stable, consistent rates, lenders on the platform receive a better rate for their deposits!
3/ Fixed rates for everyone is not easy to achieve - that’s why offerings for institutions like Compound Treasury, are arbitrarily set at 4% and even “stable” rates on Aave that users pay a high premium for can swing wildly.
1/ ICYMI we’re doing scaling week at DeFi Pulse and today we’ll be talking about BRIDGES!
Do you know about the different approaches to bridging assets?
Join us for an informational thread!
🌉🌉🌉🌉🌉🌉
2/ Let’s start with some basics:
When you transfer assets to a scaling solution, you’re interacting with a minimum of three protocols:
📫The base chain
🎯The target chain
🌉The bridge
In this txn, your assets are only as safe as the weakest link!
3/ In other words, if you’re bridging from Protocol A with 1000 nodes to Protocol B with 300 nodes, but the bridge is controlled by 3 people - you might as well be reading CeFi Pulse!