1/ 🧵Some rational thoughts about the merge and how to play the maximize your ETH game🎲 👇
2/The consensus opinion is the merge is a free money event, and you want to maximize the ETH you’re holding. Obvious play is to borrow it: if you borrow the ETH for a very short period of time you pay a small amount in interest but you get the entire ETH PoW airdrop. 🔌 💰
3/ But this creates systemic risks: crypto lenders anticipate full utilization of ETH markets. If ETH lending markets are fully utilized, they aren’t redeemable for ETH, and can’t reliably be liquidated even as borrowers are able to use loaned ETH as collateral.
💸Total loan volume: $5,000,000
🏦Protocol revenue: $5,987 in trading fees and $27,996 in COMP incentives
🥩Staking APY: 69% w/ ~43% of circulating $NOTE staked
🏦Leveraged Vaults 🔜
Full🧵 & link 👇
Leveraged Vaults 😱
✅Allow users to borrow cash at a fixed rate from Notional, then deposit it into a whitelisted smart contract executing a specific yield strategy.
✅Code is already open sourced
✅@sherlockxyz audit contest soon
✅Capped launch targeting early q4
Website Relaunch💅
The site is getting a refresh, and should go live around leveraged vault launch. Sneak peak👇
V2 launch also marks the beginning of our liquidity mining program for the $NOTE governance token - 50% of the total supply is earmarked for LPs, with 20% of the total supply for year 1. blog.notional.finance/introducing-th…
Biggest upgrades from V1?
-Auto-rolling nTokens for LPs (can also be used as collateral for borrowing against).
-Lend AND borrow up to 1yr at launch (2, 5, 10 & 20 yr coming).
-LP w/ your borrow collateral in the same transaction (100% capital efficiency).