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Notional V3 Launches Revolutionary Prime Money Market for DeFi Lending

Notional V3 has announced the launch of its new prime money market, a native variable-rate lending and borrowing market that will take DeFi lending to new heights. This revolutionary new protocol is set to enhance the user experience and accessibility of the Notional platform while solidifying its position as a leading fixed-rate lending protocol.

The prime money market will integrate directly with Notional’s fixed rate markets to offer market-leading returns to variable-rate lenders and liquidity providers. Supply funds that aren’t utilized by borrowers on Notional will be lent out to earn yield on external money markets, providing high yields for variable-rate lenders and LPs.

One of the key benefits of the prime money market is that it will improve the user experience for fixed rate borrowers. On Notional V3, fixed rate debts will automatically convert into variable-rate debts at maturity via the prime money market. This means that they will no longer be forcibly rolled forward to the next fixed rate maturity at a penalty, giving borrowers more flexibility and control over their loans.

In addition to the prime money market, Notional V3 will also introduce multi-currency leveraged vaults that allow users to borrow in two or more currencies at once. There will also be an upgraded AMM, which will increase LP efficiency and decrease slippage for fixed rate lenders and borrowers. Furthermore, governance will have the flexibility to allocate underlying tokens to other money markets without interrupting protocol operations.

The prime money market is a significant step forward for Notional, driving the protocol’s growth and improving the utility and user experience for all Notional users. By increasing organic returns for LPs, the protocol will be able to sustainably decrease NOTE incentive emissions.

The prime lending premium is another key feature of the prime money market. Prime lenders will always receive a higher return than the return paid by external money markets on unutilized supply, thanks to the prime lending rate, which is calculated as a premium to the rate Notional’s funds are earning on external money markets.

Overall, the introduction of the prime money market represents a major milestone for Notional and for DeFi lending as a whole. By offering market-leading returns and greater flexibility for borrowers, the protocol is set to become a key player in the DeFi space, driving growth and innovation in the months and years to come.

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