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 fixed rate liquidity pools in a given currency 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 DAI fixed rate liquidity pools. Every currency on Notional which has fixed rate lending and borrowing enabled has an nToken.

nTokens are also 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/V3	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