Notional is a protocol on Ethereum that facilitates fixed-rate, fixed-term crypto asset lending and borrowing through a novel financial instrument called fCash.
Fixed-rate financing is how financial markets operate. Fixed interest rates provide certainty and minimize risk for market participants, and this is why the majority of U.S. debt is issued using fixed rates. Notional brings fixed interest rates to the decentralized financial system on Ethereum and gives crypto users the same access to stable financing.
fCash offers a simple and reliable mechanism for Notional users to commit to transfers of value at specific points in the future. Trading fCash allows users to efficiently move value back and forth through time. This flexibility opens a new dimension in the financial design space on Ethereum.
Notional was developed and launched in early 2020 by a team of stakeholders with expertise in technology, trading, security, and design.
Notional V2 is governed by NOTE token holders. The Notional Team will provide analysis and parameter recommendations for a short period of time following the launch of the protocol. As the protocol becomes increasingly decentralized, the Notional Team will step back from protocol governance.
Exploring the documentation found here will give you the full technical background of how Notional works. For a higher-level explanation, please read this blog post and check out the video below.