First fully decentralized AMM based money market protocol
Timeswap is the world’s first fully decentralized AMM-based money market protocol which is self-sufficient, non-custodial, gas efficient and works without the need of oracles or liquidators. Timeswap’s proprietary 3 variable AMM is motivated by the constant product AMM used by Uniswap. It provides flexibility to the end-user by allowing the user to decide their risk profile and accordingly set the interest rates & collateral for each lending or borrowing transaction. It is brutally minimalistic, gas-efficient, and permission-less allowing anybody to create a money market for any ERC-20 tokens.
= Principal Pool
= Interest Rate Pool
= Collateral Factor Pool
= Invariance Constant Product
As lenders and borrowers engage in transactions with the pool, the interest rates and minimum collateral requirements dynamically change according to the constant product formula. So when the protocol interest rate or collateral factor is not equal to market rates, arbitrageurs come in and normalize the rates.
Permission-less fixed maturity lending & borrowing— Timeswap is fully permission-less allowing anyone to create a pool for borrowing and lending of any ERC-20 tokens with any other ERC-20 token as collateral with any maturity date
Non-Liquidatable Loans— Timeswap takes away complexity for borrowers to constantly manage their health factors. Borrowers have the optionality to pay back their debt anytime before maturity and in the event of borrowers defaulting, their collateral is distributed to the lenders of the pool. No more liquidation penalty & dependency on liquidators
Market-driven interest & collateral — As lenders, borrowers, and liquidity providers interact with our pool executing transactions, this changes the supply of assets thereby changing the interest as well as collateral required for each transaction. This dynamic interest rate and collateral ensure greater capital efficiency and risk management as compared to other collateralized lending and borrowing protocols.
Minimal attack vectors — Since Timeswap works without the need for oracles or liquidators, there are minimal attack vectors on the protocol
Timeswap works without dependency on oracles or liquidators, instead, it works on the open market-making model where market participants will normalize the interest rates and collateral requirement based on the prevailing market conditions. Thus the protocol is fully decentralized and independent of any third-party price feeds or liquidators thereby ensuring self-sufficiency.
Timeswap lenders have a proportional claim to the underlying collateral staked by borrowers in the event of default via the insurance token model. It also provides full autonomy to the users to decide their own risk vs reward profile while initiating lending or borrowing transactions.