Fixed Rate Lending Agreement Notional launches a new product "Leveraged Vaults," allowing users to gain high leverage risk exposure

Chain Catcher news, the fixed-rate lending protocol Notional has launched a new product "Leveraged Vaults," allowing users to borrow cash from Notional at a fixed rate and deposit it into whitelisted smart contracts to execute specific yield strategies. All assets in the smart contract serve as liquidatable collateral for their debt, enabling users to gain high-leverage risk exposure. If the strategy returns exceed the borrowing rate, using leveraged vaults will be highly profitable.

Leveraged vaults enhance users' capital efficiency without forcing lenders to assume any form of credit or unsecured risk. Lenders are protected by the same time-tested principles of over-collateralization and liquidation. If the value of the assets in the smart contract falls below the minimum threshold, users can be liquidated and repay their debts. (Source link)