Notional (NOTE)

Basics

• Based in:
• Aka Notional Finance
• Started in early 2020
• Mainnet release: 13-1-2021
• According to its website it is a fixed rate lending and borrowing protocol on Ethereum (30-10-2020).
• From The Defiant (13-1-2021):

"Notional Finance has come out of stealth with $3M in liquidity following a closed beta over the past quarter. Notional users can lend and borrow the stablecoins DAI and USDC at fixed rates using ETH or WBTC as collateral."

History

• From EthHub #138 (2-11-2020):

"Notional is a new protocol that lets users lend and borrow crypto at fixed rates. After 10 months in stealth, the platform launches in beta on Ethereum today."

Audits & Exploits

• Bug bounty program can be found here with no clear prize.
• It was in unaudited beta (30-10-2020).
• Received a full audit report from Open Zeppelin (13-1-2021).
• Scored a 79% on DeFi Safety (10-2-2021); "Notional has been audited by OpenZeppelin on December 22nd, 2020. Notional Finance was released October 7th, 2020" With the comment: Lets call it "Fixed" quality right across the board.  Way to go guys."

Bugs/Exploits

• From Blockthreat (4-2-2022):

"Notional patched a critical double counting bug after it was responsibly disclosed by 0x60511e57 using Immunefi."

• From Week in Ethereum (22-1-2022):

"Notional Finance post mortem, verification missed vulnerability due to logic error."

Governance

• From their docs (10-2020):

"Notional is currently governed by its founding team. The team holds admin keys to the contracts and hosts the user interface. The Notional team is committed to decentralization. We will pursue a strategy of progressive decentralization in which we will give up our admin keys, relinquish control of the protocol, and hand it off to the community."

Treasury

• From their Twitter (20-7-2021):

"Token holders will have full control over the on-chain treasury"

Token

Launch

• Announced on 20-7-2021.

Utility

• From their Twitter (20-7-2021):

"Token holders will have full control over the on-chain treasury, the protocol’s risk and collateralization parameters, and any smart contract upgrades."

Token Details

• From their docs (2-2021):

"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 are ERC1155 tokens.

Technology

• Whitepaper can be found here.
• Docs are here.
• Code can be viewed here.

Implementations

• Built on: Ethereum

How it works

• From The Defiant (4-11-2020):

"Lenders can provide capital with a guaranteed return at specific maturity dates, while borrowers can take out a loan knowing exactly what their interest payment will be. Notional is betting its custom AMM, designed to keep slippage low no matter how far away maturity is."

• From their docs (2-2021):

"Lenders trade cash for fCash and earn a fixed interest rate. Liquidity providers capitalize Notional’s liquidity pools and earn variable trading fees. Each time a lender lends or a borrower borrows, they pay a transaction fee to liquidity providers in that pool.

Notional liquidity pools are similar to Uniswap pools in that there are buyers, sellers, and liquidity providers that facilitate trading. In the case of Notional, buyers and sellers are lenders and borrowers. Liquidity providers facilitate that lending and borrowing and earn transaction fees as compensation."

Upgrades

• V2 went live on 1-11-2021.
• From Yield Farmer (10-7-2021):

"Notion presents the protocol’s V2 system, which among other things introduces longer-dated maturities."

Roadmap

• Can be found [Insert link here].

Usage

• From The Defiant (4-11-2020):

"Roughly 280k Dai was supplied to Notional’s first fixed-interest earning token, called fDai, according to this Tweet."

• Attracted over $3M of initial liquidity (13-1-2021).

Competition

• From The Defiant (4-11-2020):

"Projects including UMA, Yield Protocol and Mainframe are also testing the fixed lending market, all with different approaches to ensure tokens will trade at par upon maturity. Larger DeFi protocols like Aave offer fixed borrowing rates but are yet to support fixed lending rates, although this is likely to be a part of Aave V2 in the coming months."

Team, Funding, Partnerships, etc.

Team

• Full team can be found [here].

Funding

• From EthHub #138 (2-11-2020):

"The startup announced Monday a $1.3 million funding round from a total of eight investors, including Coinbase Ventures, 1confirmation and Polychain."

• From The Defiant (4-11-2020):

"[Got] support from investors including 1confirmation, IDEO, Parafi, Nascent, Coinbase and Polychain."

Partners 

• Participated in the DeFi Alliance’s accelerator program (18-9-2020).