What is Timeswap? Timeswap is a project in the Lending segment, operating based on the AMM mechanism to provide fixed interest rates for both lenders and borrowers. The project was also invested in by Multicoin Capital in the Seed round. So what is Timeswap? What’s special about it? Let’s find out in this article!
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What is Timeswap?
Overview of Timeswap
Timeswap is the project that brings the biggest scam in the Crypto industry when it is called Swap but provides Lending services, which involves using the AMM mechanism similar to commonly used AMM Dex. But this AMM Pool has a newer formula, more suitable for the Lending model.
Timeswap provides Lengding service with fixed term interest rate. Operation does not require updated price data from Oracle, avoiding Oracle manipulation attacks.
Timeswap difference
Using the AMM mechanism to provide fixed interest rate loan and lending products is not a new model. But the special feature of Timeswap is creating an extremely new AMM mechanism, with real asset pairs and the formula (x+y)*z=k.
Timeswap’s operating mechanism
Main products on Timeswap
Liquidity Pool
Each Timeswap Pool consists of a pair of assets similar to the Pools of other AMM Dexes. Times offers three ERC 1155 native tokens for 3 different types of users when interacting with the Pool. Three types of tokens on Timeswap V2:
- BT: Is a bond token, minted for lenders when depositing assets into the Pool.
- CTT: The token requires collateral, which is the asset that represents the borrower’s collateral in the Pool.
- LT: Liquidity tokens, when users add liquidity to the Pool, they will receive LT tokens in return, which represents liquidity in the Pool.
Settings in the Pool include Token pair, expiration time, strike price (k):
- Token pairs: Each pool is denominated in pairs of tokens that are lent and borrowed, e.g. Token A-Token B (ETH/DAI in the image above) where if one of them is a loaned asset then the other one is a collateral asset that will be locked.
- Maturity: Each pool has a maturity time before which all lending and borrowing positions will open.
- Exercise price (k): The price at which the borrower decides whether it wants to exercise its right to sell its locked-in collateral to the lender.
AMM forward swap
Timeswap V2 operates on a three-variable AMM, a combination of both constant sum and constant product. AMM helps discover the interest rate (APR) and CDP (collateral factor) of the pool. The Timeswap pool mechanism is designed in such a way that pools are always overcollateralized through a rebalancing mechanism.
Active formula inside AMM: (x+y)*z=Kwith:
- x: To be Reserve of CCT Token A in Pool.
- y: is the reserve of CCT Token B in the Pool.
- z: is the reserve of mBond Announcement (BT) in Pool (for the duration of the pool).
- K: To be constant (invariant) product.
Participating components on Timeswap
- Lenders: Deposit assets into the Pool and receive BT assets representing the position in the Pool along with a fixed interest rate. The lender can exit the position before maturity and incur a small fee.
- Borrower: Sends collateral to the Pool and receives the loan asset along with CTT Token representing the collateral. In addition, the borrower also has to pay a fixed interest rate to pay the Pool.
- Liquidity Adders: Add liquidity pairs to the Pool to create liquidity for borrowers and lenders to trade for a small fee.
Development Roadmap
Updating…
Core Team
Ricsson Ngo: Founder & CEO
- Ricsson’s highest level of education is a Master’s degree in Applied Financial Mathematics. Ricsson graduated from Ateneo de Manila University.
- In 2015, Ricsson founded Bondle Inc, the startup behind it MyBondle.com, is a web platform that helps people connect with major events. GHelps people book digital tickets and trade merchandise for crowd-sourced events.
- In 2016, Ricsson worked as Business Development Manager at Milu Bakery, developing operations, management and accounting systems to create an effective business.
- In 2017, Ricson continued to start a company called einstar. But after more than 3 years with the company, he left and found another opportunity.
- Currently, Ricsson is the Founder and CEO of Timeswap. The project was established in 2020.
Ameeth Devadas: Co-Founder
- In 2016, Ameeth worked as Lead Product Manager at Aurigin, which is a deal creation platform connecting qualified investment opportunities with institutional investors around the world.
- Currently, Ameeth is a Co-Founder at Timeswap Labs and an Angel Investor at Polygon.
Harshita Singh: Co-Founder
- In 2013, Harshita successfully obtained a degree in Mechanical Engineering from Aligarh Muslim University. Then, he continued to successfully earn a Master’s degree in Business Administration from the National Institute of Industrial Engineering in 2015.
- In 2015, Harshita worked as Assistant Manager at ITC Limited, planning the supply and sales of personal care products.
- In 2018, Harshita worked as Manager-Supply Chain Management at Walmart, leading the supply planning team for Walmart India’s own brands.
- Currently Harshita is a Co-Founder at Timeswap Labs, a project founded in 2020.
Investors
October 21, 2021: Project Seed round invested by Multicoin Capital, Mechanism Capital, DeFiance Capital.
Tokenomics
Updating…
Exchanges
Updating…
Timeswap’s Information Channel
- Website: https://app.timeswap.io/#markets
- Twitter: https://twitter.com/TimeswapLabs
- Medium:
Summary
Timeswap brings a new model to solve the fixed interest rate problem in DeFi. And the recent expansion to Arbitrum has helped the project increase TVL significantly. But whether this model is the final solution in the fixed interest rate segment or not, we need more time to observe and evaluate.
So I have clarified what Timeswap is? Overview of Timeswap cryptocurrency. Hope this article brings you a lot of useful knowledge.