The growth of decentralized finance (DeFi) is fueled by secure, reliable infrastructure such as Chainlink’s industry-standard oracle network and its suite of decentralized services. Onboarding new users to DeFi requires building bridges to centralized finance (CeFi) and developing protocols that combine the functionality of traditional financial products with DeFi’s superior yield, transparency, and user control.
While lending protocols with variable rates constitute much of the current DeFi industry, fixed interest rates are most common in traditional finance because they offer higher degrees of certainty and simplicity. Notional Finance is an Ethereum-based DeFi platform that’s bringing fixed-rate lending to DeFi, in order to empower more traditional individual and institutional investors.
Today, Notional Finance announced its V2.1 release is fully integrating Chainlink Price Feeds to accurately calculate collateralization ratios that trigger liquidations and help ensure protocol solvency. Notional Finance’s Head of Marketing, Kyle Long, told Chainlink Today that Chainlink oracles offer “top-notch core infrastructure” necessary for DeFi’s broader adoption.
“The DeFi ecosystem succeeds when an increasing slice of the traditional finance market sees DeFi as a relatively safe place to invest,” he said. “Chainlink provides the core infrastructure that enables so much of DeFi to safely build on with its accurate price feeds. Notional Finance provides the same certainty and stability with fixed rates that also enables composability in the borrowing and lending ecosystem.”
According to Long, Notional leads fixed-rate borrowing and lending on Ethereum with $400M in TVL and almost $500M in total fixed-rate loan volume since its V2 launch in November of last year. “Trading volume has increased each month in Q1 with Notional facilitating $10M of volume in January, $67M in February, and $112M in March,” he said.
Chainlink oracles power the vast majority of DeFi, securing over $75 billion in smart contracts by the end of 2021. Long said integrating Chainlink Price Feeds is integral to Notional Finance’s growing TVL.
“We are proud to be part of the Chainlink ecosystem,” he said. “Chainlink has consistently proven to be the gold standard in oracle feed accuracy and security – something that Notional and its users depend on with every passing block.”