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