Timeswap (TIME)

"Timeswap is a fixed time preference protocol for users to manage their ERC20 tokens over discrete time. It works as a zero liquidation money market and options market in one." (From DeFi Llama (15-5-2023))

Basics

• Based in:
• Started in / Announced on:
• Testnet release:
• Mainnet release:

Audits & Exploits

• Bug bounty program can be found [insert here].
• V2 got audited by Peckshield, which had 1 critical bug 8 other bugs, all of which got fixed (13-3-2023) and Code4rena (10-3-2023) which had 3 critical bugs, all of which got fixed. The website also mentions Trail of Bits and Quantstamp, but does not provide links.

Technology

• Whitepaper V1 is here (2-2021), V2 is here but seems not be finished, due to their last remark about a whitepaper telling about the full details.
• Code can be viewed here.
• Deployed on Ethereum, Polygon and Arbitrum (15-5-2023)

How it works

• From their docs (3-2023):

"Timeswap is a fixed time preference protocol for users to manage their ERC20 tokens over discrete time. It works as a zero liquidation money market and options market in one. Users can lend tokens into the pool to earn fixed yields. They can also borrow or leverage tokens against other tokens, without the fear of liquidation. Liquidity providers (different from lenders) create markets for any pair of tokens, adding liquidity, and being the counterparty to all lenders and borrowers of the protocol. In return, they earn transaction fees from both sides of the market. Timeswap utilizes a unique constant sum options specification and an ingenious duration weighted constant product automated market maker (AMM) similar to Uniswap AMM. It is designed to not utilize oracles.

Timeswap V2 has implemented an ingenious feature where the collateral factor is always over-collateralized i.e. it stays above one hundred percent no matter how large the lending transactions are. Under-collateralized loan by definition is a guaranteed arbitrage. By limiting the price range to where it is always over-collateralized, increases the price efficiency and lower slippage costs for both lenders and borrowers.

Timeswap V2 has a sound AMM having a perfect symmetry for lending and borrowing. This leads to efficient pricing for the market. Lenders can withdraw their funds before maturity given a small penalty, while borrowers can pay their debt with a discount before maturity. Liquidity providers can also withdraw their liquidity before maturity. This gives magnitude order more flexibility to all the users of Timeswap V2.

Fees

• From their docs (3-2023):

"Incentives for Liquidity Providers by adding liquidity will be the transaction fees paid by both lenders and borrowers. Transaction fees are earned as Bond Tokens(BT) withdrawn (from Lenders) and Collateral Claim tokens (CCT) withdrawn(by Borrowers) in the pool."

Upgrades

• From their docs (3-2023):

"In Timeswap V2, the pairs are now bidirectional, giving it greater capital efficiency and flexibility. Lenders can lend either token A and/or token B into the same pool, while borrowers can leverage on token A and/or token B in the same pool, using token A and/or token B as collateral. Timeswap V2's new design improves the liquidity capital efficiency by more than double, making it more lucrative for liquidity providers to join the protocol. The revenue mechanics and divergent cost mechanics have also been improved to further make liquidity provision more profitable."

Oracle Method

• From their docs (3-2023):

"Oracle-less - Timeswap works without any oracles and it discovers the interest rate and collateral factor through free market arbitrage. Most importantly, this makes the tokens safe and immune to oracle manipulation attacks."

Roadmap

• Can be found [Insert link here].

Revenue

• According to the linked Dune Dashboard by Timeswap Labs, the total fees and protocol fees have amounted to 690.51 dollars, 82$ of which went to the protocol (15-5-2023).

Usage

• According to Dune, it has 6214 unique wallet interactions and 48,674 tx (15-5-2023).

Pros and Cons

Pros

• Liquidity providers can create pools for any ERC20 pair, without permission.
• No oracles, which means less attack surface.

Team, Funding and Partners

Team

• Full team can be found here (15-5-2023). Has around 20 people, mainly from India.
• Sandeep Nailwal; advisor

Funding

• Multicoin Capital, Mechanism Capital and DeFiance Capital are mentioned by them, but the later two do not mention Timeswap in their own public portfolios (15-5-2023).
• On the website the following angels are also mentioned (15-5-2023):

Surojit Chatterjee (Coinbase), Mihailo Bjelic (Polygon), Calvin Liu, Ajit Tripathi (Aave), Sanket Shah (Polygon), Ryan Sean Adams, George Lambeth (Divergence Ventures), Sachin Tomar (Biconomy), Alex Svanevik (Nansen) and Larry Cermak.

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