Dr. Timeswap or: How I Learned to Stop Worrying and Love Exotic Assets
Oracleless architecture isn’t just about resilience. It’s also about enabling exotic assets, tapping into the potential of superfluid capital like LP tokens…
After a few months of V2 being live, it’s time to reflect on how much we have achieved and how much we still have left to do! On that note, we wanted to present a handy summary of all the pools we have launched, some of which was only possible through our unique design.
This unique design allows us to offer exotic assets which have never been exposed to a money market before and remain a huge untapped gold mine for DeFi. LP tokens are the soundest financial instruments in the space: they are backed by underlying assets, they can always be redeemed, their working is possibly the most decentralised out of all protocol tokens and they are yield bearing on top of it all! So, why don’t we see more of them acting as collateral? Because most protocols rely on oracle price feeds to accurately function, calculating how much can be borrowed and when a position gets liquidated. It is hard to accurately price and LP tokens have no oracle feed that supplies reliable data about them!
Timeswap, with its oracleless design can unlock leverage for exotic assets without the need for a price feed as our AMM has native price discovery built into it. Just take a look at our immensely popular APT pool in collaboration with TraderJoe! With just $50k in initial liquidity, we have facilitated a combined lend and borrow volume of over $168k!
Let’s dive into some pools!
Pool Party Summer
Pendle Pool
Our latest offering showcases the unique power of Timeswap to synergise with other protocols who share our vision on fixed term financial instruments in DeFi. Using PT-wstETH from Pendle as collateral, users can now take out a USDC loan. This can be used to leverage up or hedge your bets! It doesn’t get any better than fixed-yields on fixed-yields with zero liquidation risk from either protocol.
APT Pool
One of the newest pools on the timeline, this pool represents a new era for Timeswap. LP tokens are one of the soundest financial instruments in DeFi, being backed by underlying assets and always redeemable. But, they have remained underutilised for too long. With the integration of Auto Pools, Timeswap is opening up an entirely new sector to DeFi and supercharging the vision of superfluid capital!
Aura Pool
In our quest to make LP tokens superfluid, we have now started to add support for ERC-4626 vault share tokens for yield bearing assets, starting with two pools from Aura: RDNT-WETH and WBTC-TBTC! With this integration we have demonstrated that future vaults for yield bearing tokens utilising this standard can be used on Timeswap. This helps Aura capture a better share of Balancer liquidity and rewards, while allowing their users leverage on their Aura assets for the first time!
unshETH Pool
Following on our record of listing innovative assets, we were the first and the only ones till now to list unshETH — a basket of the 4 biggest LSDs. LSDs are already an abstracted version of staked assets to make them more liquid for DeFi. So, why not make them more liquid? If ETH is ultrasound money, a yield bearing version of it is hypersound money. You could earn yields by lending USDC, backed by unshETH or borrow USDC to leverage up on unshETH!
stMATIC Pool
A three way collaboration between Lido, QiDAO and Timeswap, this pool allowed borrowers to leverage up on their staked MATIC positions and access to the stablecoin MAI. You could earn yield on your MATIC and borrow stablecoins at the same time!
ARB Pool
One of our best performing and demanded pools ever since we launched on Arbitrum! We listed ARB within few hours after the token went live and the rest, as they say, is history. Airdrops are always a volatile affair and most money markets would sit out the early days so the price action settles down because of liquidation and accurate price feed concerns. With our oracleless and non-liquidatable design, Timeswap can ship novel tokens faster than any other protocol!
plsARB Pool
This pool allowed plsARB holders to access leverage and liquidity for their tokens. Because the plsARB liquidity pool hadn’t launched yet, Timeswap was the only place plsARB holders could actually use their bags to arb plsARB. They could borrow USDC by pledging plsARB collateral and hedge their position or leverage up as they wished!
Again, Timeswap was first out of the gate on an asset and became the second largest holder of plsARB, only after PlutusDAO itself!
RPL Pool
Right around Shanghai, Timeswap launched a pool pairing RPL and rETH. Rocketpool is an LSD protocol which strives for decentralisation, just like us! So, we timed the launch to make sure RPL holders could speculate on directional bets for LSDs without getting liquidated in the process!
dQUICK Pool
Several protocols now have their own staking mechanism to generate and distribute revenue to tokenholders. This forces a choice for the user: do they stake or do they use it for leverage? With the dQUICK pool, Timeswap ensured that QUICK holders could do both! Staked QUICK could now be lent and borrowed from Timeswap, allowing additional yield for existing holders and new yield opportunities for borrowers.
gDAI Pool
This pool allowed for a simple strategy of leverage looping gDAI — the yield bearing version of DAI used by the popular perpetual futures protocol, GainsNetwork. Borrowers could pledge gDAI collateral to borrow DAI and leverage up according to their risk tolerance.
USDC Depeg Pool
During the USDC scare of 2023, we ran a depeg pool for 3 days pairing USDC with USDT. The non-liquidatable nature of Timeswap allows it to handle extreme situations where other protocols may pause activity through a governance vote. The isolated nature of Timeswap pools allows the protocol to stay solvent even if a pool does not behave ideally without the risk of contagion spreading throughout all assets listed.
BLUR Pool
BLUR took the NFT market by storm and we caught the lightning in a bottle. Allowing BLUR holders to speculate on price trajectory by using it to borrow USDC and hedge their bets or accumulate more BLUR.
Diving Deeper
This is just the start. Timeswap may just be a couple of pools right now, but it will soon become the ocean of liquidity! A lot of the assets talked about above could only be listed on Timeswap or have never been listed anywhere else. Timeswap does away with a lot of the constraints on current money markets due to our unique design.
So, keep an eye out for more integrations, more liquidity, more leverage and to a future of superfluid capital!
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