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Jeff Wu & Teddy Woodward: Notional Finance – The Fixed-Rate Lending Protocol

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Notional is a protocol on Ethereum that facilitates fixed-rate, fixed-term crypto asset lending and borrowing. The core concept of Notional is fCash, a zero-compound bond defined by a currency type and maturity date. Notional’s liquidity pools are built by liquidity providers who contribute cTokens and fCash and act as counterparty to the lenders and borrowers that are active on the protocol.

We were joined by co-founders Teddy Woodward and Jeff Wu to chat about the benefits and tradeoffs of fixed rate interest borrowing, how Notional operates, and comparisons to other lending protocols in the space.

Topics covered in this episode:

  • Teddy and Jeff's backgrounds and how they got into crypto
  • The benefits of a fixed rate over a variable interest rate loan
  • The product from a user perspective
  • The role of liquidity providers in the protocol
  • Tradeoffs of using Notional as opposed to other lending platforms
  • Lender and borrower obligations
  • How Notional maintain security
  • The ERC1155 token standard which is implemented on fCash
  • The maturity parameter and how it's determined
  • The Notional governance model

Episode links:

Sponsors:

  • ParaSwap: ParaSwap aggregates all major DEXs and makes sure you beat the market price at every single swap and with the lowest slippage - paraswap.io/epicenter
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This episode is hosted by Sebastien Couture & Friederike Ernst. Show notes and listening options: epicenter.tv/413

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