We’re excited to announce the next step in Notional’s journey: Notional Exponent - the world’s first leveraged yield protocol.

Notional Exponent does two things: ⚡️It tokenizes new strategies designed for leveraged yield users 💧It builds on top of lending protocols like @MorphoLabs to access deep borrow liquidity

What will Notional Exponent mean for you? - New leveraged strategies that weren’t possible before - Deep borrow liquidity on high APY strategies - The most advanced leveraged yield UX in DeFi

Core innovation #1: smart redemption Smart redemption makes it possible to redeem a staked token for its underlying (ex sUSDe -> USDe) in a Notional vault without taking the vault share off the lending protocol. This enables: 1. Costless exits. You can now unwind a leveraged position by redeeming your collateral instead of market selling it and paying fees and slippage. 2. New leveraged yield strategies. Smart redemption makes it possible to liquidate yield tokens that have redemption delays and don’t have tradable liquidity. This makes it possible to list these yield tokens as collateral!

Core innovation #2: cross-protocol leverage optimization Users can migrate their leverage position between supported lending protocols in one click with no disruptions. Could switching from Morpho to Euler improve your total APY? Just do it - all it costs is gas.

Core innovation #3: Leveraged staked LP token strategies Get leverage on LP tokens that are staked in yield boosters like Convex. Notional Exponent makes it possible for the first time ever on the largest lending protocols in DeFi.

Launch timeline: July 2: Audit contest with @sherlockdefi July 23: Audit with @MixBytes Go-live target: Fall 2025

What about Notional V3? Notional V3 will continue running indefinitely. However - UI support, new vault listings, and incentives will gradually phase out over 2025.

What about fixed rates? We’re not leaving fixed rates behind. We know how important they are for leveraged yield users. Fixed rate borrowing options for our strategies are currently in development 👀

What’s happening to $NOTE? NOTE is still Notional’s value accrual token. ➡ V3 revenues keep supporting NOTE ➡ Exponent will drive NOTE value accrual too (more details to come) When Notional wins, NOTE wins.

Notional Exponent will let us focus on what we do best: leveraged yield strategies. New strategies, deep liquidity, high APYs. Get ready for the best leveraged yield product in DeFi!