# Notional V3

[Notional V3](https://docs.notional.finance/notional-v2/) introduces multiple key innovations in the DeFi Lending market space:

* **Prime Cash Variable Rate Borrowing & Lending markets** allowing users to borrow and lend at variable rates.
* **Fixed Rate Borrowing & Lending markets** allowing users to lock in a fixed rate for a given maturity at high capital efficiency.
* **Leveraged Interest Rate Trading** for users to borrow at a fixed rate and lend at a variable rate or vice versa with leverage while remaining delta neutral.
* **Leveraged Vault Trading** for users to borrow fixed or variable to enter whitelisted yield strategies (e.g. Convex or Aura) with leverage.

To enable these use cases while keeping the protocol secure, Notional enforces multiple risk management measures:

* **Collateral haircuts** to mitigate the risk of collateral assets declining in value.
* **Debt buffers** to mitigate the risk of debt assets rising in value.
* **Supply caps** to mitigate the protocol's exposure to more risky assets while allowing the selection of capital-efficient risk parameters.
* **Oracle price deviation limits** to validate the market value of leveraged vault strategy tokens align with oracle prices.
* **Oracle rate TWAPs** to value fCash for collateral purposes.

## Protocol Governance

[NOTE](https://etherscan.io/token/0xcfeaead4947f0705a14ec42ac3d44129e1ef3ed5) and [staked NOTE](https://etherscan.io/address/0x38DE42F4BA8a35056b33A746A6b45bE9B1c3B9d2) (sNOTE) token holders can participate in Notional’s governance by proposing or voting on parameter change proposals. Anyone can propose or vote on Notional Request for Comments (NRCs) or Notional Improvement Proposals (NIPs) through the [Notional Governance Forum](https://forum.notional.finance/). Official votes are currently held through [Notional's Snapshot](https://snapshot.org/#/notional.eth) but will become fully on-chain in the coming future.