V3 Risk Parameters
  • Notional V3
  • Risks
    • Economic Risks
    • Technological Risks
  • Prime Cash Markets
    • Prime Cash Interest Rate Model
  • fCash Markets
    • fCash Markets
    • fCash Maturities
    • fCash Interest Rate Model
  • nTokens (LP)
    • nTokens
    • Deposit Shares
    • Leverage Thresholds
    • nToken ifCash Residuals
    • Incentives
  • Collateral Framework & Liquidations
    • Overcollateralization structure
    • Exchange Rate Risk
    • Prime Cash risk adjustments
    • fCash risk adjustments
    • nToken risk adjustments
  • Asset Liquidity Risk
    • Prime Cash Supply Caps
  • Leveraged Vaults
    • Collateral structure & leverage
    • Vault Shares Valuation
    • Liquidations
    • Maximum Pool Share
    • Fees
  • Notional's Backstop
    • Treasury
    • sNOTE
  • Notional Finance
  • Notional V3 Docs
  • Technical Docs
  • Collateral Onboarding Docs
  • Notional Dune Dashboard
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  1. nTokens (LP)

Deposit Shares

Deposit shares are percentage figures that tell the nToken account how much of a user's total liquidity to deposit into each individual market. Deposit shares are represented as percentages and add up to 100%.

For example, if a currency's max market index is 3 meaning there are 3 active markets (3 month, 6 month, and 1 year) the deposit shares will allocate Prime Cash liquidity amongst those 3 active fCash markets.

Deposit shares allow Notional governance to direct liquidity to the maturities where there is the greatest end-user demand for borrowing and lending. For example, governance may decide on a set of deposit shares that would direct more liquidity to long-dated maturities and less liquidity to short-dated maturities, or vice versa, depending on relative demand.

Parameter Selection Considerations

Deposit shares should be selected to allocate sufficient liquidity to listed markets based on current and historical demand.

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Last updated 1 year ago