Thread by @defipulse

1/🍇 DeFi Pulse Drop: @NotionalFinance 🍇

Notional V2 is bringing fixed-rate borrowing & lending to the fore of DeFi.

A key innovation behind this rise? nTokens!

Here’s what nTokens are & how you can use them to level up in DeFi 👇

notional.finance/provide

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!

4/ Accordingly, nTokens are:

📈 yield-bearing
🌀 redeemable whenever
💰 a new DeFi collateral type
💪 persistent

Persistent = you can LP-and-forget, you don’t have to exit/re-enter when Notional maturities begin & end. Your liquidity rolls across maturities as they come and go.

5/ Best of all? The flexibility & efficiency!

Let’s say you want to borrow against nDAI. In just 1 tx, Notional V2 lets you:

✅ LP by minting nDAI
✅ borrow against your new nDAI
✅ start earning pool fees + $NOTE rewards + Compound supply rate simultaneously

Boom 💥

6/ Powerful stuff, right? We think so!

If you want to dive deeper into Notional Finance V2 & nTokens, learn more in our latest write-up on the promising protocol:

defipulse.com/blog/notional-…

7/ This is a paid promotion as part of our DeFi Pulse Drops series where DeFi Pulse works with projects to launch their new features and builds. If you want us to work with you, please get in touch!