What is TimeSwap?
DeFi Lending (introduction)
Decentralized lending platforms provide loans to businesses, or the public with no intermediaries are present. On the other hand, DeFi lending protocols enable everyone to earn interest on supplied stable coins and cryptocurrencies.
With enough collateral, any interested borrower can have access to liquidity. Interest rates are solely determined with an algorithm balancing the supply and demand of the assets lent and borrowed. In some cases, holders of the protocol’s governance token can vote on interest rates as part of a decentralized autonomous organization (DAO).
Lending volumes are growing, but are still small. We estimate that debt outstanding is slightly in excess of $30 billion. That represents a few basis points of global banks’ total lending. As of June 30, 2021, DeFi lending
and borrowing protocols made up about 18% of the total DeFi market measured by market capitalization. The four largest DeFi lending and borrowing platforms (Aave, Maker, Celsius Network, and Compound) had a total market capitalization of about $13 billion as of mid-August, 2021. This showcases the concentration of the lending and borrowing market within DeFi.
DeFi lending could improve the liquidity of certain digital assets. Holders of better-established digital assets (such as bitcoin and even nonfungible tokens) can diversify their portfolios by pledging existing digital assets for the purchase of other types. DeFi lending can therefore improve liquidity within the overall digital assets ecosystem.
What is TimeSwap? Why TimeSwap?
Timeswap is a permissionless lending and borrowing protocol on Ethereum, that helps users to earn interest on their crypto assets or hedge against volatile markets without the need for a trusted third party.
TimeSwap comprises a set of smart contracts deployed on the Ethereum blockchain that can be openly accessed by anyone with an internet connection. TimeSwap is managed by holders of a protocol native governance token called Time Token. TimeSwap is entirely non-custodial, so users are responsible for managing their own funds.
TimeSwap lets its users determine which assets are listed and to reate a pool of every ERC-20 tokens with any other ERC-20 token as collateral with any maturity date
- TimeSwap provides flexibility to the end-user by allowing the user to decide their risk profile and accordingly set the interest rates and collateral for each lending or borrowing transaction.
- Timeswap’s permission-less pools can be used to create fixed income markets, options, and various other financial products, given the fixed maturity design of the pools.
- Without the need for liquidators
Timeswap takes away complexity for borrowers to constantly manage their health factors. Liquidation happens automatically based on the decisions of each borrower.
Timeswap doesn’t require an oracle. It is protected against one of the most critical attack vectors plaguing DeFi today.
- Timeswap aims to revolutionize money markets via its unique 3 variable constant product AMM. It’s automated market maker algorithm similar to Uniswap for the interest and collateral calculation.
Read more about AMM algorithm here
- TimeSwap was supported by top backers and investors such as Multicoin Capital, Mechanism Capital and Defiance Capital.