What are nTokens

nTokens automate the liquidity provision process for LPs and remove the need for LPs to deposit into individual liquidity pools. nTokens are a simple and easy way to earn returns across all active maturities passively.

nTokens are ERC20 assets that represent a share of Notional's total liquidity in a particular currency across all active maturities. For example, if you have nDAI, it means you have a share of Notional's total liquidity in DAI across all active maturities. Every currency on Notional which has fixed rate lending and borrowing enabled has an nToken.

nTokens are also incredibly versatile. You can redeem or transfer them at any time without restrictions. Additionally, you can use nTokens as collateral on Notional. This means you can earn yield via nTokens in one currency and borrow against your nTokens in a different currency.

Attributes
V1
V2
Remarks

Currency Selection

Manual

Manual

USDC, DAI, ETH etc

Pool Maturity Selection

Manual

Auto

3 Months, 6 Months, 1 Year

Auto Rolling of Liquidity

No

Yes

nTokens don't mature

Participation

Active

Passive

nTokens are fully passive

Additional Incentives

No

Yes

nTokens earn NOTE incentives

Risk Diversification

No

Yes

nTokens provide liquidity on all maturities