Lending

Overview

• Lenders on Notional deposit their assets into a pool and earn interest paid by borrowers.

• The lending rate is determined by the utilization in the pool.

• Lending provides up-only yield and is freely redeemable at no cost at any time.

Creating a position

To lend your assets, follow these steps:

1. Go to the lending page.

2. Pick a network.

3. Pick the asset you want to lend.

4. Input the amount you want to lend.

5. Click Continue to Review.

6. Click Submit.

Viewing your position

To find your position, go to the holdings tab on the portfolio page.

This page shows you detailed info about your position. You can see:

1. Your APY.

2. How much you deposited.

3. The current value of your position.

4. Your earnings.

Managing your position

To manage your position, follow these steps:

1. Go to the portfolio holdings tab.

2. Expand the row of the asset you want to manage.

3. Click the manage button.

This gives you two options. You can:

1. Convert your loan into a fixed rate.

2. Convert your loan into providing liquidity.

Converting to fixed

To convert your variable rate loan into a fixed rate loan follow these steps:

1. Select which maturity and rate you want. Your APY will be fixed at the rate shown until the maturity date.

   
2. Click submit.

3. Review details and click submit again.

When you convert your variable lend to a fixed rate, you will pay a fee. You can find the size of this fee on the trade summary.

Converting to liquidity

To convert your variable rate loan into providing liquidity follow these steps:

1. Select the liquidity option on the manage menu.

2. Click submit.

3. Review details and click submit again.

You may see a fee or rebate when you provide liquidity. The fee or rebate will show up on the trade summary.

Withdrawing your assets

To withdraw your assets, follow these steps:

1. Go to the portfolio holdings tab.

2. Expand the row of the asset you want to withdraw.

3. Click the withdraw button.

4. Enter the amount you want to withdraw.

5. Click submit.

6. Review details and click submit again.

Fees

Variable rate lending has no fees on entry or exit.

The only time you will pay a fee is if you convert a variable rate loan to a fixed rate loan or a liquidity position.

Interest rates

The interest rate you earn depends on the interest rate curve and the utilization of the lending pool.

You can see what the interest rate has been in the past and the utilization of the pool using the UI.

Historical interest rates

To see the historical interest rate, go to the transaction page of the asset you want to lend.

On this page, you can see where the rate has been each day for the last 90 days by hovering your mouse over the chart:

Utilization

The utilization is the total amount borrowed from the pool / total amount lent to the pool. The more people borrow, the higher the utilization goes.

You can see what the lending rate will be at different utilization levels by hovering your mouse over the chart: