# Overview This guide defines Notional's asset onboarding process. It defines how community members can propose the listing of new assets. It also defines the review process and the models used to select initial governance parameters. ### **Benefits of listing new assets** * **Scaling:** Adding new currencies allows users to borrow and lend against a broader range of assets. The onboarding of collateral and tradable assets also allows Notional to scale its product offering and broaden its user base. * **Portfolio diversification:** Additional collateral assets diversify Notional's collateral portfolio, diversifying the protocol's risk. New tradable assets also diversify the protocol's trading fees across multiple assets. ### Risks of onboarding new assets * **Economic risks**: Listing new collateral assets can increase the risk of bad debt for the protocol. If the price of collateral assets change rapidly, the protocol could accumulate bad debts as a result. This risk can be mitigated through Notional's governance parameters (Supply Caps, Exchange Rate Haircuts, and Exchange Rate Buffers). * **Centralization risks**: Some collateral assets bear more centralization risk (ex: asset-backed stablecoins) and could expose the protocol to blacklisting risks or single point of failure risks. * **Smart contract risks**: New assets, such as leveraged vault strategies, might introduce additional risk vectors to the Notional codebase. When adding new assets to Notional, controls must be put in place to ensure that the additional risks the protocol undertakes are worthwhile. This asset onboarding framework aims to maximize value creation for Notional users while minimizing risks. --- # Agent Instructions: Querying This Documentation If you need additional information that is not directly available in this page, you can query the documentation dynamically by asking a question. Perform an HTTP GET request on the current page URL with the `ask` query parameter: ``` GET https://docs.notional.finance/collateral-onboarding-framework/overview.md?ask= ``` The question should be specific, self-contained, and written in natural language. The response will contain a direct answer to the question and relevant excerpts and sources from the documentation. Use this mechanism when the answer is not explicitly present in the current page, you need clarification or additional context, or you want to retrieve related documentation sections.