Copy of Notional V2
  • About Notional
  • Product Guides
    • Fixed Rate Lending
    • Providing Liquidity
    • Leveraged Vaults
    • Fixed Rate Borrowing
  • FAQs
  • Risk Framework
  • Developer Docs
  • 💸fCash
    • What is fCash
    • Using fCash
    • fCash Maturity
  • 💹Trading fCash
    • Transaction Fees
    • Exiting Early
    • Interest Rate Risk
  • 💰Borrower Resources
    • Loan to Value (LTV)
      • Local-Currency Risk Factors
      • Single-Currency Portfolios
    • Health Factor
    • Liquidation
  • 🚰Liquidity Pools
    • What are Liquidity Pools
    • Liquidity Pool Mechanics
    • Liquidity Pool Examples
      • Providing Liquidity
      • Lending
      • Borrowing
  • 🪙nTokens
    • What are nTokens
    • nToken Mechanics
      • nToken Portfolio
      • Minting nTokens
      • Redeeming nTokens
    • nToken Returns
    • nToken Risks
  • ⚡Leveraged Vaults
    • What are Leveraged Vaults
    • Entering and Exiting a Vault
    • Liquidation
    • Settlement
    • Vault Returns
    • Vault Risks
    • Vault FAQs
  • ⚖️Governance
    • NOTE
    • NOTE Staking
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  1. nTokens
  2. nToken Mechanics

Minting nTokens

PreviousnToken PortfolioNextRedeeming nTokens

When a user mints nTokens, they deposit cTokens into the nToken account and the nToken distributes their liquidity to the individual liquidity pools.

Here is a step-by-step flow of minting nTokens.

  1. A user deposits cash (in this example, DAI) into the nToken account.

  1. To provide liquidity, the nToken account needs to mint fCash for each liquidity pool and deposit it in the proper proportion. The second step is for the nToken to fetch the proportion data from the liquidity pools

  1. The nToken allocates the cash and fCash to the different liquidity pools based on the deposit shares.

  1. The nToken receives liquidity tokens in exchange for the liquidity provided to the pools.

  1. Lastly, Notional mints nTokens and gives them to the user.

Based on the proportion data fetched from the liquidity pools, the nToken mints the fCash pair for each maturity. Find background on how this process works .

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