Notes.Finance is NOW LIVE!
After several months of hard work, we are now proudly announcing the official launch of Notes.Finance, a decentralized exchange for interest earning stablecoins.
Earn and farm now: Notes.Finance
Notes.Finance is built on top of the smart contract developed by the Curve Finance team under the Yearn Finance ecosystem. It offers 3 types of liquidity pools and the liquidity providers (LP) of any of these pools are able to earn multiple yields up to 500% APY altogether (explained below).
3 types of Liquidity Pools:
1) noteUSD + 3Pool (USDC+USDT+DAI)
2) flexUSD + 3Pool (USDC+USDT+DAI)
3) Note Tokens + 3Pool (USDC+USDT+DAI)
Here is a diagram explaining the logics and relationships between noteUSD, flexUSD, Note Tokens and FLEX Coin:
What sources of yield can be earned by Liquidity Providers? Here’s the breakdown:
For a more detailed breakdown, click here.
- FLEX Rewards are the daily payouts of FLEX Coin to the pools. As the TVL (total value locked) in notes in notes.finance goes up, this return will go down as it is spread out over a larger supply of notes.
- Fixed Yield is the daily fixed interest rate the trading firm pays to token buyers as a rebase, automatically increasing the pool’s balance of Note Tokens.
- 3Pool Returns are paid to 3Pool liquidity providers in CRV, the native token of Curve Finance.
- 30% Trading Fee is the 30% of each trading firm’s fees that goes to token holders. In the early days we started with a 1X Daily Volume: Loan requirement and will ratchet that up to 5X and then 10X over time. This yield scales with the number of borrowers, as more trading firms = more liquidity and more opportunities for firms to trade against each other.
- DEX Trading Fees are the fees collected by the DEX from slippage on each Note Token purchase and sale that DeFi users make. Investors may want to buy Note Tokens on the DEX in order to AMM them, hold exposure to them or cash out of them. All of these transactions will result in yield for the AMM.
Because of these 5 mechanisms, the returns will be much higher than the returns from simply holding the Note Tokens themselves. We believe this will help kickstart the Note Tokens market and spur lots of adoption on both the buying side and also the issuance/borrowing side.
Anyone can buy Note Tokens, noteUSD and flexUSD, take them off CoinFLEX and then become an AMM on the liquidity pools on Notes.Finance. For a guide on how, click here.
About CoinFLEX
CoinFLEX is the platform behind flexUSD, the only stablecoin to pay interest on-chain.
