Notional Finance
Notional is the first decentralized, Ethereum-based protocol for borrowing and lending at fixed rates and fixed terms. With variable rate lending, DeFi can only serve a small segment of the crypto lending market because variable interest rates don’t provide the certainty that lenders and borrowers require. Notional fixes this by creating a true market for lenders and borrowers that democratizes and empowers individual investors, business owners and institutional investors.
Right now, users can borrow or lend USDC & DAI for up to one year, and ETH & WBTC for up to six months from Notional's on-chain liquidity pools. With Notional's V2 upgrade, liquidity providers enjoy a low-touch experience, and no longer need to roll their debts to new maturities as it is done automatically through the use of nTokens, ERC20 tokens that represent a user's share of the liquidity pool.
After raising a $10 million Series A in May 2021 from some of the top VC firms, including Coinbase Ventures, Notional’s protocol relaunched on 11/1 with a host of new features as well as the NOTE governance token and a TVL of appx. 500M.
Integrations
Notional Launches Exponent Beta with 4 Leveraged Yield Strategies
Thu 2nd Oct 2025
**Notional Exponent Beta** is launching with a **6-week program** featuring innovative leveraged yield strategies.
**Key Features:**
- 4 new leveraged yield strategies
- 100,000 $NOTE token incentives for participants
- Beta testing phase for the world's first leveraged yield protocol
This represents the **next evolution** of Notional's fixed-rate lending protocol, expanding beyond traditional borrowing and lending into leveraged yield generation.
The beta program offers early access to test these new strategies while earning substantial NOTE rewards for participation.
Notional Exponent Introduces Smart Liquidation for Illiquid DeFi Collateral
Thu 21st Aug 2025
Notional Exponent addresses a critical DeFi challenge: managing illiquid collateral that requires days to redeem.
The protocol introduces **Smart Liquidation**, a solution designed to handle slow-moving collateral in DeFi lending markets.
Key features:
- Automated handling of illiquid assets
- Reduced risk for lenders
- Streamlined liquidation process
This development builds on Notional's existing fixed-rate lending infrastructure, which currently manages approximately $500M in TVL.
The solution aims to expand DeFi lending markets beyond instantly liquid assets, potentially opening new opportunities for real-world assets on-chain.
Notional Finance Announces Notional Exponent - First Leveraged Yield Protocol
Thu 3rd Jul 2025
Notional Finance has unveiled Notional Exponent, marking a significant evolution in DeFi lending. This new protocol introduces leveraged yield capabilities, a first in the space.
Key features of Notional's current offering:
- Fixed-rate lending for USDC & DAI (up to 1 year)
- ETH & WBTC lending (up to 6 months)
- Automated debt rolling via nTokens
- ~$500M Total Value Locked (TVL)
The protocol, backed by Coinbase Ventures among others, continues to build on its successful V2 upgrade and $10M Series A funding.
Learn more: [Notional Exponent Announcement](https://blog.notional.finance/notional-exponent-doubling-down-on-leveraged-yield/)
Notional Launches First Leveraged Yield Protocol - Notional Exponent
Thu 19th Jun 2025
Notional Finance has announced Notional Exponent, positioning it as the first leveraged yield protocol in the space. This follows their successful implementation of leveraged yield farming vaults on Arbitrum, which include:
- Smart contract risk protection via OpenCover
- Integration with Balancer v2 and Aura Finance
- Eligibility for Notional's ARB points program
The protocol combines fixed-rate lending with leveraged yield strategies, offering users enhanced yield opportunities while maintaining risk management features.
[View eligible vaults](https://notional.finance/points-dashboard/arbitrum)
[Protocol coverage details](https://drive.google.com/file/d/16GDT3it0H5C-QVTRejdNUg6zs_zBsODV/view)
Security Incident at Bybit Leads to Temporary Pause of USDe-Related Vaults
Mon 24th Feb 2025
**Key Updates:**
- Notional has temporarily suspended operations for March USDe PT, May sUSDe PT, and Curve USDe/USDC vaults following a security incident at Bybit
- Safe's security team is actively collaborating with Bybit officials on an ongoing investigation
- No evidence of compromise found in the official Safe frontend
- Safe{Wallet} has implemented temporary functionality restrictions as a precautionary measure
**Current Status:**
The situation is being actively monitored, with expectations of a benign resolution. User security remains the top priority, with further updates pending.
New UI Feature: Leveraged Vault Utilization Trackers
Wed 16th Oct 2024
Notional introduces a new UI feature for leveraged vault utilization tracking. This update allows users to:
- Quickly assess vault capacity without clicking
- View available space in vaults at a glance
This enhancement builds on previous UI improvements, including:
- Rewards charts for staked assets
- Easy tracking of earnings since inception
These features aim to improve user experience and provide clearer insights into vault performance and rewards.
tBTC Now Collateral on Mainnet and Arbitrum
Wed 16th Oct 2024
Notional Finance has expanded its offerings, now accepting tBTC as collateral on both Mainnet and Arbitrum networks. This development allows users to borrow against their tBTC holdings at a fixed rate, providing a more stable alternative to variable rate lending.
Key points:
- tBTC can be used as collateral on Mainnet and Arbitrum
- Fixed-rate borrowing available against tBTC
- Eliminates concerns about fluctuating borrow rates
This update aligns with Notional's mission to provide fixed-rate, fixed-term lending options in the DeFi space, offering more certainty for both lenders and borrowers.
For more information on how to utilize this new feature, visit Notional's official platform.
