Timeswap crosses over into X Layer

Published in
4 min readMay 1, 2024

Timeswap is now live on X Layer!

The Time Machine cruises into ZK mode with the launch on X Layer! X Layer is a zero-knowledge rollup built on top of Ethereum that offers fast finality through the use of zero-knowledge proofs. It is backed by OKX, one of the largest exchanges in the space!

Why cross over into X Layer?

X Layer has experienced an incredible journey, marked by significant milestones that underscore its adoption and the potential to serve as the foundation for a robust DeFi ecosystem. In less than two weeks, it has garnered a TVL of over $12 million!

X Layer is structured as a validium, allowing it the security of ZK computation to secure the chain!

  • Lower fees: X Layer does not consume expensive gas (i.e., DA to store transaction data off-chain).
  • ZKP-powered scalability: X Layer is not bounded by the amount of transaction data that can be published to Ethereum with ZK-validity proofs.
  • Ethereum security: X Layer natively inherits the security of Ethereum, securing user funds from malicious operators.
  • Unified liquidity: X Layer ensures fluid asset transfers across different CDK-developed chains within Polygon 2.0’s layer 2 ecosystem, building a vibrant, efficient, and interconnected digital economy.
  • Near-instant finality: X Layer utilises cryptographic security to ensure the integrity of transactions, achieving near-instant finality and robust security.
  • Powered by OKX: X Layer provides seamless OKX product integrations, an all-in-one Web3 gateway, and access to 50M users in the OKX ecosystem.
  • Portal to Web3: Enter the world of Web3 via OKX Wallet, built with compact infrastructure modules to create innovative DApps.

Multiple innovative protocols have also started to reap the benefits of a ZK system! X Layer is also quickly becoming an important catalyst for bringing the vision of permissionless financing to the forefront by building a sustainable ecosystem to make sure things chug along just right.

What is Timeswap though?

Here’s a brief rundown of the basics! If you want to know more about Timeswap, we recommend reading this blog!

Key Parameters:

  • Asset Pair: X-Y assets that act as debt and collateral assets.
  • Transition Price: The price level which changes the bias of the pool.
  • APR (Annualised Percentage Rate): The annualised interest rate at which borrows/lends occur.
  • Maturity Date: The date at which the pool expires.


Asset Pair: This is like a duo in a pool. You have two types of assets, let’s call them X and Y. X is like the main one, and Y is the sidekick. For example, if X is USDC (a stablecoin), then Y could be ETH (a cryptocurrency).

Transition Price: Think of this as a magic number that decides how people in the pool behave. It determines whether borrowers will pay back what they owe or not. Also, it affects how lenders get repaid. This magic number also tells us how much extra stuff (collateral) borrowers have to give just in case they can’t repay.

APR (Annualised Percentage Rate): This is like a reward for being part of the pool. If a lot of people are lending money, the reward gets smaller. If more people want to borrow, the reward gets bigger. But once you join the pool, your reward stays the same, even if things change later.

Maturity Date: This is like a deadline. Borrowers have to pay back what they owe by this date, or else they lose what they put in as extra stuff (collateral). Lenders get their rewards fully when this deadline arrives.

So, putting it all together: Imagine a swimming pool with two main characters (assets), a special number (transition price), a reward system (APR), and a deadline (maturity date). Depending on how the main characters behave and how the special number is set, borrowers either pay back or don’t. Lenders get their rewards accordingly, and everything wraps up by the deadline. If borrowers fail to pay back, lenders get the extra stuff they left behind.

What does Timeswap bring to the X Layer ecosystem?

The burgeoning growth of the X Layer ecosystem and trading volumes, suggests rapid development. Consequently, we anticipate encountering challenges, fluctuations, and stress tests, especially within DeFi protocols.

Within any DeFi ecosystem, lending and borrowing stand as foundational elements. Establishing a resilient money market capable of securely supporting numerous ecosystem tokens is paramount. Traditional lending and borrowing platforms face limitations in low-liquidity environments due to their reliance on liquidations and susceptibility to various attack vectors. Security gains heightened importance in nascent ecosystems with thin liquidity and evolving infrastructure. In this context, Timeswap emerges as the preferred lending and borrowing platform, offering a protocol independent of liquidation, alongside the capability to accommodate any ERC-20 or ERC-4626 token.

Timeswap is the world’s first oracleless, AMM-based lending and borrowing protocol, applicable to any ERC-20 and ERC-4626 token. Lenders using Timeswap earn a fixed yield on their tokens for a predetermined period, while borrowers gain access to non-liquidatable loans by paying a fixed interest amount.

With our entry into X Layer, users can now access safer leverager by taking advantage of Timeswap’s unique architecture to make money markets for assets that cannot be listed on other markets with fixed terms and no liquidations!

The Genesis Pool

Collateral asset: WOKB

Borrow/Supplied asset: USDT

Maturity: 31st May 12:00 UTC (i.e., ~4 weeks)

If you want to learn more about how your project can utilise Timeswap or create a lending/borrowing market for your assets (including receipt and LP tokens), please fill out this form.

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