Asset onboarding process

Notional asset listings are a three-step process.

1) Asset onboarding proposal

Community members can initiate asset listings by publishing a Notional Request for Comment (NRC) on the Notional governance forum. The application should cover all items mentioned in the asset listing template.

More precisely the NRC should include a security assessment, technical implementation assessment, and economic risk assessment.

Security review

• High-level smart contract review

• Review of past audits and past hacks/bugs

• Maturity of the project and usage

Implementation review

• Assessment of potential Oracle risks

• Is the asset a rebasing token?

• Does the asset has transfer fees?

Economic risk review

• Overview of historical returns, volatility, and on-chain liquidity profile

• Review of the asset's distribution and token holder base

• Assessment of qualitative risks (ex: centralization, blacklisting)

Listing parameter selection

• Selection of collateral asset governance parameters (if applicable):

  • Supply cap

  • Exchange rate haircut and buffer

  • Exchange rate liquidation discount

• Selection of tradable asset governance parameters (if applicable):

  • Interest rate curve parameters for Prime Cash and fCash markets (Kinks, Kink rates, max rates, initial proportions, fees)

  • nToken parameters (deposit shares, leverage thresholds)

  • Asset haircuts and buffers (fCash haircut and buffer, nToken haircut percentage, max )

  • Incentive rates

Before publishing an asset listing NRC, community members should validate that the asset meets the minimum listing requirements:

• The asset is an ERC-20 token;

• It has been traded for at least 3 months;

• A sufficiently robust oracle exists (ex: Chainlink);

• At least one high-quality audit of the asset's underlying project has been conducted;

• More than 1,000 unique wallets hold the asset;

• The current float (circulating supply/max supply) is above 25%;

• The token has more than $2m of on-chain DEX TVL (Mainnet) or more than $500K of on-chain DEX liquidity on a Layer 2 chain where a Notional deployment exists.

2) Temperature check

Following a community member asset listing proposal, the community will be able to show their support by voting on a temperature check poll accompanying the asset onboarding NRC. For an NRC to pass the temperature check, it has to get at least 80% support from at least 5 community members.

Community members can and should express feedback regarding the proposed governance parameters on the forum.

If the NRC passes the temperature check, it will be formalized as a Notional Improvement Proposal (NIP) and will move to an official Snapshot vote.

3) Community snapshot vote

If the community response to the NIP is positive, a snapshot vote will be held over a five day period. The snapshot vote allows community members to signal their support or opposition.

If the snapshot poll outcome is positive, the asset will be listed on Notional.