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Description
https://forum.makerdao.com/t/collateral-onboarding-call-39-d3m-for-notional-finance-signal-request-discussion/13828
- Presentation by Notional Finance’s Teddy Woodward @twoodward.
- Community Q&A.
A
Hi
everyone
welcome
to
another
collateral,
onboarding
call.
This
is
number
39
and
we're
actually
exploring
another
type
of
of
collateral
to
mean
die
in
this
case
is
part
of
the
d3m
which
was
initially
launched
with
the
with
ava.
For
those
I
have
any
questions
about
that.
You
can
check
the
forum
at
form.maker.com
yeah.
A
B
Sure
thing
thanks
thanks
juan
so
I'm
teddy
woodward,
I'm
the
co-founder
of
notional,
and
I
I
have
a
very
short
presentation
for
you
guys.
I
you
know,
I
think
most
of
you
are
probably
you
know
relatively
familiar
with
with
the
way
notion
works.
So
so
I'm
going
to
keep
this
short,
but
I'm
I'm
really
glad
to
be
here
and
and
thanks
everyone
for
the
opportunity
and
taking
the
time
to
come
to
this
and
learn
more
about
notional
and
and
ask
questions.
B
I
think
that
this
would
be
an
awesome
integration.
You
know
obviously
notional
would
love
to
to
work
with
maker,
but
I
think
this
this
provides
you
guys
a
good
opportunity
as
well
to
you
know
to
earn
some
more
revenue.
You
know
in
a
format
that
you're
familiar
with,
and
also
to
provide
some
sort
of
strategic
influence
to
the
long-term
borrowing
rates
that
are
available
to
d5
users
for
for
dye.
B
So
just
as
as
a
quick
background,
notional
is
a
decentralized
protocol
on
ethereum
that
enables
fixed
rate
lending
and
borrowing
of
crypto
assets.
So
we
launched
we
started
the
company
roughly
two
years
ago
and
and
have
launched
our
our
pre,
our
most
current
version,
our
notional
vv2
about
four
months
ago
and
I'll.
Take
you
to
the
website
now,
so
you
can
give
you
and
since
our
launch,
we
have
attracted
about
500
million
dollars
in
tbl
and
we've
processed
about
375
million
dollars
in
in
total
loan
volume.
B
So
you
know
we
have
kind
of
quickly
become
the
leading
fixed
rate
protocol
in
d5
by
a
wide
margin
and
and
I'll
kind
of
give
you
a
quick
overview
of
how
it
works.
So
notional
is
a
if
you're
familiar
with
some
of
the
different
ways
that
people
are
trying
to
achieve
fixed
rates.
Notional
is
a
using
the
zero
coupon
bond
method.
So
the
way
that
you
know
I
describe
what
notional
is
is
it's
a
lot
like
it's
a
lot
like
compound
with
fixed
rates?
B
B
B
So,
for
example,
june
1st
2022
usdc,
that's
an
f
cash
token
and
it
is
transferable
and
tradable,
and
on
june
1st
it
can
be
redeemed
for
one
usdc
on
notion
and
and
the
way
we
you
know,
use
this
concept.
So
you
know.
Basically,
this
concept
allows
us
to
define
cash
flows
at
specific
dates
in
the
future
and
the
way
we
use
that
to
enable
fixed
rate,
borrowing
and
lending
is
by
allowing
users
to
trade
between
cash
today
and
cash
in
the
future.
B
So
these
are
the
only
collateral
types
currently
on
offer.
Okay,
so
when
people
are
borrowing
any
of
these
currencies
that
you
know,
the
acceptable
forms
of
collateral
are
restricted
to
this
currency
set.
Now,
let's,
let's
look
at
dye
so
yeah.
So
this
is
diet
and-
and
these
are
the
rates
that
are
available
for
the
different
maturity
days.
So
we
currently
are
offering
march
28th
june
26th
and
december
23rd.
C
B
B
B
A
B
I
got
it
all
right,
sorry
about
that
everybody.
Maybe
you
can
edit
that
out.
I
don't
know
but
okay,
so
so
this
was
the
lens
screen
that
I
was
I
was
talking
over
here.
So
we
have
die
ether,
usdc
and
wrapped
bitcoin,
and
these
are
sort
of
the
rates
that
are
available
for
each
of
these
currencies
and
if
you
go
to
die,
you
can
see
that
we
have
three
different
maturities,
that
you
can
lend
or
borrow
too
right,
and
these
are
currently
the
sort
of
the
rates
that
are
available
right.
B
So
you
know,
as
you
can
see
like
the
yields
curve
is
strangely
shaped,
and
it's
it's.
It's
not
exactly
clear
why
it's
shaped
like
that,
but
this
is
something
that
that
you
know
this.
D3M
integration
would
allow
you
guys
to
sort
of
have
influence
over.
You
know.
How
do
you
want
this?
You
know
what
do
you
think
makes
sense
for
this
yields
curve
like
like?
How
do
you
think
it
should
be
shaped
right
and
now?
B
The
interest
rates
for
die
borrowers
and
just
in
general,
sort
of
influencing
the
shape
of
this
yield
curve
right,
and
I
just
want
to
demonstrate
a
little
bit
the
the
sort
of
the
available
liquidity
here.
So
you
can
see
we
have
this.
We
have
a
little
chart
here
which
shows
you
the
slippage
for
different
sizes.
B
Okay,
so
if
you
want
to
lend
10k,
you
can
lend
it
688
100k
687.,
1
million
676
10
million
568.
right.
So
you
know
what
I
want
to
demonstrate
here
is
just
that
notional
is
is,
is
quite
liquid.
Now
it's
it's
certainly
smaller
than
something
like
compound
or
ave,
but
it's
it's
very
liquid.
Still
so
there's
you
could,
you
know,
deploy
a
material
amount
of
capital
and
you
know
have
have
attractive
returns
on
on
that
capital.
B
A
B
C
C
D
D
B
Yeah,
so
actually
that
the
the
exposure
is
the
other
way
around,
so
so
the
urine
vaults,
the
why
the
usdc
and
yv
dive
vaults
are
depositing
into
notional
so
they're
sort
of
taking
notional
risk
as
opposed
to
the
other
way
around,
so
that
that's
the
first
thing
but
but
sort
of
a
more
general
answer.
You
know
something
something
that's
an
important
part
of
notions.
Construction
is
that
it
is
integrated
with
compound.
B
So
basically,
and
the
reason
we
do
this
is
so
that
liquidity
providers,
so
people
who
put
capital
into
into
these
liquidity
pools,
can
earn
additional
yield.
Okay
because
they
they
provide
capital
in
the
form
of
c
tokens
like
c
die
instead
of
actual
die,
and
so
you
know
as
an
as
a
notional
user.
That
is
a
that
is
a
dependency
of
the
notional
system
and
we
chose
compound
because
we
felt
it
was
the
lowest
risk
and
most
secure
integration
of
that
type.
B
So
we
we
chose
compounded
instead
of
something
like
urine,
for
example,
but
yeah.
Just
to
you
know,
just
give
you
a
little
bit
more
color
on
on
how
notional
works
and
sort
of
the
the
smart
contract
risk
that
a
notional
user
or
like
notional
positive,
would
take.
There's
also
the
the
additional
smart
contract
risk
of
of
compound.
D
B
B
Well,
there's
they're
not
taking
any
they're,
not
borrowing
so
there's
no
like
they
wouldn't
be
liquidated.
It's
just
this.
This
scenario
would
happen.
If
you
know,
if
everybody
wanted
to
pull
their
money
out
of
the
urine
vault
right,
then
they
would
have
to
go
like
you
know.
They
would
have
to
go
raise
that
cash
and
the
way
they
would
do
that
is.
They
would
sell
their
loan
position
on
notional.
A
B
Yeah,
so
I
think
for
scalability,
okay,
so
there's
there's
kind
of
I
think,
there's
two
ways
to
look
at
that
question.
So
I
think
actually,
the
comment
on
the
forum
referred
to
sort
of
technical
scalability
in
the
sense
that
I
believe
the
poster
was
worried
that
you
would
need
to
deploy
a
new
contract
to
handle
every
single
maturity,
every
new
maturity
that
you
wanted
to
lend
to,
and
that
is
not
true.
B
B
E
No,
that's,
okay.
I
think
it
like
blends
into
my
wall,
probably
hi
teddy
thanks
for
being
here.
I
wondered
if
you
could
share
your
regulatory
risk
assessment
for
your
firm
and
the
product
and
if
you've
been
contacted
or
had
any
inquiries
from
scc
or
you
know,
there's
been
a
lot
of
heat
around
the
lending
products.
You
know
block
fi
and
coinbase
lend
products
so
just
wondered
what
your
assessment
is
for
for
your
firm
and
if
you've
had
any
inquiries
from
authorities
regarding
the
products.
B
Yeah,
so
so
we
have,
we
have
not
had
any
inquiries
at
all
and-
and
you
know
what
I
would
say
is
that
you
know
I
think
notional
is
a
on
a
path
to
sort
of
decentralization,
and
I
think
that,
like
you
know,
so
I
think
that
we
are
kind
of
you
know.
We
are
we're,
leaning
on
that
in
terms
of
our
sort
of
like
thinking
about
the
legal
strategy.
I
think
that
you
know
what
we're.
E
So,
just
just
to
follow
up
on
that,
I
mean
separate
apart
from
good
faith
and
I
guess
future
future
centralization.
Have
you
been
advised
by
council?
I
mean,
do
you
have
a
view
as
to
you
know
the
current
assessment
of
your
firm
and
product
and
in
terms
of
the
regulatory
landscape
and
licenses
that
you
may
or
may
not?
E
Otherwise,
you
know
be
required
just
sort
of
an
assessment
of
where
you
currently
fit.
You
know.
Good
faith
is,
I
think,
not
not
so
much
the
question
as
much
as
you
know,
just
an
assessment
of
kind
of
in
this
environment
where,
where
you
fit
today,
and
how
you,
how
you
kind
of
see
the
risks
in
that
regard
to
your
to
your
business
and
products.
B
I
think
you
know
we
would
try
and
influence
the
dao
and
the
community
to
sort
of
comply
with
those
regulations.
But
for
now
it's
it's
it's
quite
you
know
there.
There
is
no.
There
is
no
clarity.
So
it's
not
you
know
I.
We
have
no
sort
of
it's
not
clear
what
we
should
and
what
we
shouldn't
be
doing
yeah.
So
I
I
imagine
that
this
is
kind
of
an
issue
that
that
maker
has,
you
know,
encountered
itself
yeah.
A
C
Yeah
I
mean
I
wasn't
gonna
mention
the
governance
process.
I
think
you
guys
have
been
stewards
of
bringing
this
thing
through
and
I
think
it's
highlighted
some
things
that
are
are
gaps
that
are
sort
of
orthogonal
to
the
thing,
but
I
was
more
going
to
ask
about
the
term
blending
module,
which
is
like
a
little
bit
more
decentralized,
a
little
bit
more
user
focused.
Why
d3m?
Why?
Why
not
the
term
lending
module?
I
don't
think
we
answered
that
question.
B
I
I
yeah
I
I'm
not
I'm
not
super
familiar
with
the
term
lending
module.
You
know
basically
kind
of
with
our
discussions
with
with
gfx
who
sort
of
helped.
You
know
obviously
propose
this.
They
felt
that
d3m
was
the
best
fit
here.
So
you
know
I'm
not
super
familiar
with
how
notional
and
maker
could
sort
of
integrate
in
the
context
of
the
term
lending
module.
C
A
C
C
B
Okay,
yeah
and
I
think,
from
a
from
a
practical
perspective
like
I,
I'm
not
sure
how
much
of
a
difference
there
really
is.
You
know
if
maker
is
just
going
to
be
lending
fixed
and
depositing
into
international,
how
you,
what
the
name
that
you
call
it,
whether
it's
d3m
or
or
term
lending
module
from
a
practical
perspective,
I'm
not.
C
Sure
what
the
difference
is
yeah.
I
can't
speak
to
like
the
practical,
smart
contract
difference.
I
think
it
would
be
quite
nuanced,
but
as
far
as
I
can
understand,
the
the
tlm
is
much
more
user
focused
in
that
they
would
deposit
the
order.
They
end
tokens
f
tokens
notional
tokens
themselves
rather
than
the
d3m,
which
is
controlled
by
governance.
That's
all,
but
as
seb
says
in
the
chat
branding
matters
so.
F
F
F
I
know
I
know
I
know
I
understand,
but
from
an
user
perspective,
I
understand
that
there
are
different
solutions,
but
you
are
getting
stable
coins
liquidity
from
compound
and
then
you
work
on
a
fixed
rate.
That's
like
your
added
value,
but
if
you
are
getting
a
die
from
compound
the
at
a
with
the
through
the
d3m,
so
it
will
be
almost
like
the
same
as
if
you
integrate
it.
No.