Notional Finance Announces Notional Exponent - First Leveraged Yield Protocol

Notional Exponent has launched a new leveraged vault featuring **$liUSD-4w** from Infinifi, now live on the platform. **Key Details:** - Vault exclusively available on Notional Exponent - Offers leveraged yield opportunities - Users can earn Infinifi points alongside yields - Represents expansion of Notional's vault offerings beyond traditional fixed-rate lending This launch follows Notional's evolution from its core fixed-rate lending protocol to include more sophisticated DeFi products through the Exponent platform.

Notional's market now uses an **exchange rate oracle from the Infinifi protocol**, fundamentally changing liquidation mechanics for $liUSD-4w positions. **Key changes:** - No liquidation risk from temporary market price swings or flash crashes - Liquidations only occur from actual investment losses that reduce $liUSD-4w value - Oracle reports exchange rates rather than spot prices This follows similar implementations for mHYPER and mAPOLLO markets, which use Midas-reported exchange rate oracles. The approach allows users to maintain leveraged positions without fear of short-term volatility triggering forced liquidations. Liquidation risk remains possible, but only when underlying asset performance genuinely deteriorates - not from market noise.

Notional is distributing **100,000 $NOTE tokens** to early users of its Exponent vaults over the first six weeks. **How it works:** - Deposit funds into a Notional Exponent vault - Earn $NOTE tokens proportional to your deposit size - Larger deposits = more $NOTE earned The incentive program aims to bootstrap liquidity for Notional's new Exponent product, which builds on the protocol's existing fixed-rate lending and borrowing infrastructure. [Learn more about Notional Exponent](https://notional.finance)

Notional has launched **Smart Withdrawal**, a new feature that enables users to exit leveraged positions instantly without costs, even when underlying collateral has redemption delays. **Key benefits:** - Zero-cost leverage unwinds on illiquid collateral - Eliminates need to sell collateral at a discount - Reduces redemption time from 6+ cycles to just 1 cycle - No waiting weeks to fully exit positions The innovation addresses a critical pain point in DeFi lending, where users previously faced either selling assets below market value or enduring lengthy withdrawal periods.

Notional has launched its first **Exponent vault** featuring **$mAPOLLO**, developed in partnership with Midas RWA and Apollo Crypto. **Key Details:** - First vault in the Notional Exponent series - Collaboration between Midas RWA and Apollo Crypto - Part of a broader expansion with more vaults planned **What's Next:** Notional indicates this is just the beginning, with plans to introduce: - Additional vaults (including $mHYPER) - More curators - Increased liquidity options - Enhanced yield opportunities The Exponent platform aims to improve leveraged yield strategies for DeFi users. The vault is now available for users to try.