Notional
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  • About Notional
  • FAQ
  • Notional Basics
    • fCash
    • Liquidity Pools
    • Lending
    • Borrowing
    • Providing Liquidity
  • Risk and Collateralization
    • Account Structure
    • Collateralization
    • Free Collateral Calculation
    • Liquidation
    • Settlement
  • Technical Topics
    • Notional AMM
    • Liquidity Provider Returns
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  • Maturities
  • User Types

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  1. Notional Basics

Liquidity Pools

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Last updated 4 years ago

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Notional makes fCash available to trade within its built-in AMM-enabled liquidity pools. A Notional liquidity pool holds fCash alongside its currency type (Dai and fDai, for example). A liquidity pool refers to a maturity: a Dec 1 2020 liquidity pool holds Dec 1 2020 fCash.

Maturities

Liquidity pools mature at a set cadence depending on the governance parameter settings. One example would be quarterly pools that mature every 3 months.

User Types

Three user types interact with Notional liquidity pools: lenders, borrowers, and liquidity providers. Lenders deposit Dai into the pool and receive fDai (a promise to receive a fixed amount of Dai at a future date). Borrowers take Dai from the pool and deposit fDai (a promise to pay a fixed amount of Dai at a future date). The liquidity provider adds Dai and Dec 1 2020 fDai into the pool which can be lent or borrowed by either party.

Dec 1 2020 DAI Liquidity Pool
Quarterly Dai Liquidity Pools