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
