NotionalFinance fCash Collateral Launch
Starting today you can use Notional Finance’s fCash as collateral when borrowing on the Yield Protocol. You can use this to get leveraged exposure to fCash or to unlock liquidity of their fCash holdings by borrowing USDC or DAI. The initial Loan-to-Value ratio will be 90%. Get started today by visiting app.yieldprotocol.com
The first types of fCash being supported are FDAI2206, FDAI2209, FUSDC2206, FUSDC2209.
Background
Notional Finance is a collateralized fixed rate borrowing and lending protocol on Ethereum with about 500 million in TVL. They have support for four types of assets — USDC, DAI, WBTC, and ETH. The Notional Finance dApp is available at https://notional.finance/.
Since the launch of its governance token, $NOTE, liquidity has flowed into their system and increased yields across the board. As of writing, the lending interest rate on Notional for USDC and DAI is both over 8% for the December 2022 term. At Yield Protocol, we believe in liquid, fixed rate markets and we believe that by adding fCash as collateral, interest rates in the ecosystem can become more efficient.
To start, fCash will be available as collateral only for maturity dates matching their Yield counterparts. For example, the Sept 2022 fCash maturity can be used to borrow for the Sept 2022 Yield Protocol maturity. Users can increase their fCash yield by using it as collateral on Yield Protocol to borrow USDC and DAI at a fixed rate, and converting into more fCash.
Quickstart Guide
- To start, you will need to mint fCash with your desired maturity dates. You can do so at https://notional.finance/portfolio
2. To start borrowing against your fCash on Yield Protocol, go to app.yieldprotocol.com, and select Borrow. Select from the same maturity series and the same stablecoin (June or September maturity dates, DAI or USDC)
3. On the next screen, choose the appropriate fCash term as collateral option. For example, Yield Protocol’s DAI Jun 2022 series will correspond with FDAI2206.
4. On the next screen, confirm the parameters of your borrowing vault. Clicking confirm will launch a transaction with the Ethereum network to solidify your loan. After your transaction is confirmed, you can view the details of your loan via the Dashboard.
Additional Resources
Yield Docs — docs.yieldprotocol.com
Yield App — https://app.yieldprotocol.com/#/borrow
Yield Discord — discord.gg/JAFfDj5
