Timeswap V2 — Mainnet Launch

Timeswap
Timeswap
Published in
5 min readFeb 20, 2023

--

After the Big Bang, the Nebula takes shape.

Timeswap V2 will be going live on Polygon Mainnet on 20th February

Nebula is here!

Timeswap is thrilled to introduce the next upgrade to our vision of permissionless, oracleless, non-liquidatable, fixed term financial instruments in DeFi with Timeswap V2 — now named Nebula!

What is Timeswap V2?

Timeswap V2 is the end result of all the learnings from developing our V1 AMM over the past 18 months and countless user feedback since our Big Bang launch in March 2022. We took user feedback, patterns of usage and econometric data into account to make the fixed term leverage machine that users want. It is now more capital efficient, easier to use and secure both economically and technologically.

Why Timeswap V2?

Over the past few months, we carefully observed the user behaviour as well as spoke to our users to gather more feedback and here are some of our key findings:

  1. Lenders and Liquidity Providers want to have the option to exit the pool before maturity.
  2. Lenders and Borrowers were not utilising the customise APR/CDP option as much as we expected them to.
  3. Assets repaid by borrowers cannot be lent out again
  4. Large size transactions relative to overall pool liquidity causes slippage sometimes leading to risk free arbitrage for borrowers at the cost of lenders / LPs

Timeswap V2 Features

So, what is so great about Timeswap V2 anyway? Well, 2 > 1 so it’s already better!

But, we have a few other nifty features as well:

Lenders and Liquidity Providers can exit before maturity:

In Timeswap V1, Lenders/LPs need to wait till maturity to exit the pool.

Timeswap V2 solves this by allowing them to exit anytime they want to. Since Timeswap is a fixed-term protocol, exiting before maturity results in some slippage for lenders / LPs but it gives them the optionality in case they want to exercise this right.

Utilisation of Repaid assets:

In Timeswap V1, assets repaid by borrowers before maturity cannot be further lent out.

In Timeswap V2, when borrowers repay before maturity, the assets are added back into the AMM and can be again lent out to future borrowers. This also leads to higher capital efficiency and better price discovery of APR and CDP. Borrowers also need to pay interest only for the duration they were active instead of paying interest till pool maturity.

Symmetricity

In Timeswap V1 design, lenders and LPs could not exit the pool before maturity due to the asymmetric design between lenders and LPs on one side and borrowers on the other side i.e borrowing positions were represented using ERC-721 while lending positions were ERC-20, this meant lenders and LPs could not exit the pool natively before maturity.

Timeswap V2 utilises ERC-1155 implementation to represent positions of lenders and borrowers. This design choice allows creation of a perfect symmetry between lenders and borrowers on each side of the AMM, which leads to the optionality of early exit for lenders/LPs.

Bidirectionality

In Timeswap V1, a USDC-ETH pool is different from ETH-USDC pool.

In Timeswap V2, USDC-ETH pool is similar to ETH-USDC pool, making it Bidirectional. This means, you can lend/borrow both the tokens from the pool while keeping any of them as collateral. This improves capital efficiency significantly and we expect this design to be used significantly for closely correlated assets such as BTC/ETH

Overcollateralised Pools

In Timswap V1, large size transactions relative to overall pool liquidity causes slippage, which sometimes leads to risk free arbitrage for borrowers at the cost of lenders / LPs.

Timeswap V2 on the other hand always stays overcollateralized regardless of the transaction size, which is a significant improvement from V1. This also means LPs can confidently add liquidity without worrying about a fat finger lend transaction inadvertently impacting their liquidity position.

Here are a few handy places to deep dive into Timeswap V2:

V2 Mainnet Launch Details

URL: https://app.timeswap.io

Network: Polygon Mainnet

Pool: USDC-WETH

Maturity: 27 February, 4pm UTC

Liquidity: $50,000

Important Points

- Timeswap V2 is a new design that is untested in production. While we have undergone multiple audits with Code4rena and Peckshield and taken all security measures, there could still be unknown vectors due to the new design. So please exercise caution while interacting with our pools.

- The objective with the mainnet launch is to ensure everything works as expected, and hence the pool will have low liquidity, to begin with. Please check for slippage while doing your transactions.

- Always check with the team if you need any help or assistance. We have a dedicated channel on Discord.

- Since we are on the Polygon network, you will need MATIC tokens to pay gas fees.

Now that we are all caught up with Nebula, you can head over to https://app.timeswap.io to try it for yourself!

Bull or Bear, we BUIDL!

We’ve gone through some turbulent times for our industry in the past few months, many degens and builders have left, discords are ghost towns and twitter memes are peaking as usual in bera market. However, we are deeply greatful to all the Time Travelers who are sticking around and actively contributing to the community, including our Time Guardians and TTWs. We’d also like to thank the amazing Polygon DeFi team who have closely worked with us and supported us from our early days.

We continue to be guided by our North Star — to build a permissionless and decentralized financial infrastructure for everyone in the world. BULL or BEAR, we BUIDL!

Follow Timeswap:

Discord: https://discord.gg/timeswap

Twitter: https://twitter.com/TimeswapLabs

Medium: https://medium.com/Timeswap

Telegram: https://t.me/Timeswap

About Polygon Labs:

Polygon Labs develops Ethereum scaling solutions for Polygon protocols. Polygon Labs engages with other ecosystem developers to help make available scalable, affordable, secure and sustainable blockchain infrastructure for Web3.

Polygon Labs has initially developed a growing suite of protocols for developers to gain easy access to major scaling solutions, including layer 2s (zero-knowledge rollups and optimistic rollups), sidechains, hybrid chains, app-specific chains, enterprise chains, and data availability protocols. Scaling solutions that Polygon Labs initially developed have seen widespread adoption with tens of thousands of decentralized apps, unique addresses exceeding unique addresses exceeding 211 million, over 1.12 million smart contracts created and 2.36 billion total transactions processed since inception. The existing Polygon network is home for some of the biggest Web3 projects, such as Aave, Uniswap, and OpenSea, and well-known enterprises, including Robinhood, Stripe and Adobe. Polygon Labs is carbon neutral with the goal of leading Web3 in becoming carbon negative.

If you’re an Ethereum Developer, you’re already a Polygon developer! Leverage Polygon’s fast and secure txns for dApps you develop, get started here.

Website | Twitter | Developer Twitter | Telegram | LinkedIn | Reddit | Discord | Instagram | Facebook

--

--