Current parameters
The tables below present a summary of Notional's governance parameters.
Liquidity pool parameters:
Liquidity pools governance parameters influence the number of active maturities per cash group and the shape of each pool's AMM curve:
Max market index parameters
Cash Group | Max Market Index Value |
Stablecoins | |
USDC | 3 (3 month, 6 month & 1 year tenors) |
DAI | 3 (3 month, 6 month & 1 year tenors) |
Crypto assets | |
ETH | 2 (3 month & 6 month tenors) |
WBTC | 2 (3 month & 6 month tenors) |
Anchor rates
Cash Group | Anchor rate (3 month) | Anchor rate (6 month) | Anchor rate (1 year) |
Stablecoins | |||
USDC | 0.035 | 0.035 | 0.035 |
DAI | 0.035 | 0.035 | 0.035 |
Crypto assets | |||
ETH | 0.03 | 0.03 | NA |
WBTC | 0.01 | 0.01 | NA |
Scalar rates
Cash Group | Scalar rate (3 month) | Scalar rate (6 month) | Scalar rate (1 year) |
Stablecoins | |||
USDC | 48 | 47 | 45 |
DAI | 48 | 47 | 45 |
Crypto assets | |||
ETH | 45 | 45 | NA |
WBTC | 66 | 66 | NA |
Initial proportions
Cash Group | Proportion (3 month) | Proportion (6 month) | Proportion (1 year) |
Stablecoins | |||
USDC | 0.60 | 0.60 | 0.60 |
DAI | 0.60 | 0.60 | 0.60 |
Crypto assets | |||
ETH | 0.63 | 0.29 | NA |
WBTC | 0.64 | 0.42 | NA |
Maximum market proportion
Cash Group | Maximum market proportion |
All | 99% |
Collateral assets & liquidations
Collateral assets & liquidation parameters influence the free collateral calculations and the liquidation incentives given to liquidators :
Default liquidation portion
Cash Group | Default liquidation portion |
All | 40% |
Oracle rate time window
Cash Group | Oracle rate time window (minute) |
All | 360 minutes |
Exchange rate haircuts
Cash Group | Exchange rate haircut |
Stablecoins | |
USDC | 0.92 |
DAI | 0.92 |
Crypto assets | |
ETH | 0.78 |
WBTC | 0.78 |
Exchange rate buffers
Cash Group | Exchange rate buffer |
Stablecoins | |
USDC | 1.09 |
DAI | 1.09 |
Crypto assets | |
ETH | 1.29 |
WBTC | 1.29 |
Exchange rate liquidation discounts
Cash Group | Liquidation discount |
Stablecoins | |
USDC | 4.00% |
DAI | 4.00% |
Crypto assets | |
ETH | 6.00% |
WBTC | 7.00% |
fCash haircuts (5 BPS)
Cash Group | fCash haircut |
Stablecoins | |
USDC | 110 (550 BPS) |
DAI | 110 (550 BPS) |
Crypto assets | |
ETH | 110 (550 BPS) |
WBTC | 110 (550 BPS) |
Debt buffers (5 BPS)
Cash Group | Debt buffer |
Stablecoins | |
USDC | 110 (550 BPS) |
DAI | 110 (550 BPS) |
Crypto assets | |
ETH | 110 (550 BPS) |
WBTC | 110 (550 BPS) |
fCash haircut liquidation discounts (5 BPS)
Cash Group | fCash haircut liquidation discount |
Stablecoins | |
USDC | 30 (150 BPS) |
DAI | 30 (150 BPS) |
Crypto assets | |
ETH | 30 (150 BPS) |
WBTC | 30 (150 BPS) |
fCash buffer liquidation discounts (5 BPS)
Cash Group | fCash buffer liquidation discount |
Stablecoins | |
USDC | 30 (150 BPS) |
DAI | 30 (150 BPS) |
Crypto assets | |
ETH | 30 (150 BPS) |
WBTC | 30 (150 BPS) |
Settlement penalty rate (5 BPS)
Cash Group | Settlement penalty rate |
Stablecoins | |
USDC | 40 (200 BPS) |
DAI | 40 (200 BPS) |
Crypto Assets | |
ETH | 40 (200 BPS) |
WBTC | 40 (200 BPS) |
Liquidity token haircuts
Cash Group | Liquidity token haircut (3 month) | Liquidity token haircut (6 month) | Liquidity token haircut (1 year) |
Stablecoins | |||
USDC | 0.95 | 0.90 | 0.88 |
DAI | 0.95 | 0.90 | 0.88 |
Crypto assets | |||
ETH | 0.95 | 0.90 | NA |
WBTC | 0.95 | 0.90 | NA |
Token repo incentive
Cash Group | Token repo incentive |
All | 30% |
nToken PV haircut percentages
Cash Group | nToken PV haircut percentage |
Stablecoins | |
USDC | 85% |
DAI | 85% |
Crypto assets | |
ETH | 90% |
WBTC | 90% |
nToken liquidation haircut percentages
Cash Group | nToken liquidation haircut percentage |
Stablecoins | |
USDC | 97% or 300 BPS discount |
DAI | 97% or 300 BPS discount |
Crypto assets | |
ETH | 98% or 200 BPS discount |
WBTC | 98% or 200 BPS discount |
nToken parameters
nToken governance parameters influence how nToken accounts allocate their incoming liquidity to different liquidity pools and how they handle fCash residuals upon quarterly rolls:
Deposit shares
Cash Group | Deposit shares (3 month) | Deposit shares (6 month) | Deposit shares (1 year) |
Stablecoins | |||
USDC | 0.45 (45%) | 0.40 (40%) | 0.15 (15%) |
DAI | 0.45 (45%) | 0.40 (40%) | 0.15 (15%) |
Crypto assets | |||
ETH | 0.55 (55%) | 0.45 (45%) | N.A. |
WBTC | 0.55 (55%) | 0.45 (45%) | N.A. |
Leverage thresholds
Cash Group | Leverage threshold (3 month) | Leverage threshold (6 month) | Leverage threshold (1 year) |
Stablecoins | |||
USDC | 0.84 (~7%) | 0.84 (~7%) | 0.84 (~7%) |
DAI | 0.84 (~7%) | 0.84 (~7%) | 0.84 (~7%) |
Crypto assets | |||
ETH | 0.86 (~7%) | 0.86 (~7%) | NA |
WBTC | 0.88 (~4%) | 0.88 (~4%) | NA |
Residual purchase incentives (10 BPS)
Cash Group | Residual purchase incentive |
Stablecoins | |
USDC | 20 (200 BPS) |
DAI | 20 (200 BPS) |
Crypto assets | |
ETH | 20 (200 BPS) |
WBTC | 20 (200 BPS) |
Cash withholding buffers (10 BPS)
Cash Group | Cash witholding buffer |
Stablecoins | |
USDC | 130 (1300 BPS) |
DAI | 130 (1300 BPS) |
Crypto assets | |
ETH | 90 (900 BPS) |
WBTC | 90 (900 BPS) |
Residual purchase time buffer (Hours)
Cash Group | Residual purchase time buffer |
Stablecoins | |
USDC | 24 hours |
DAI | 24 hours |
Crypto assets | |
ETH | 24 hours |
WBTC | 24 hours |
Fees & incentives
Notional fees and incentives governance parameters dictate the proportion of fees charged on every trade and how these fees are split between liquidity providers and the protocol reserves. Moreover these parameters influence the allocation of NOTE incentives to nToken accounts:
Total fee (BPS)
Cash Group | Annualized fee |
Stablecoins | |
USDC | 30 BPS |
DAI | 30 BPS |
Crypto assets | |
ETH | 30 BPS |
WBTC | 30 BPS |
Reserve fee shares
Cash Group | Reserve fee share |
Stablecoins | |
USDC | 80% |
DAI | 80% |
Crypto assets | |
ETH | 80% |
WBTC | 80% |
Maximum collateral balances
Cash Group | Maximum collateral balance |
---|---|
USDC | No maximum |
DAI | No maximum |
ETH | No maximum |
WBTC | No maximum |
Incentive emission rates
Stablecoins | |
USDC | 6,750,000 NOTE |
DAI | 4,250,000 NOTE |
Crypto assets | |
ETH | 2,000,000 NOTE |
WBTC | 0 NOTE |
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