Understand Timeswap in 3 mins
AMA that made everyone understood + time token leaks
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AMA that made everyone understood @TimeswapLabs
No marketing flare, no bullshxt just good learning
Heres a Recap of the first
🧑🍳🥩🤌 Medium Rare Product driven AMA
+ @TimeswapLabs token leaks
What you can learn from this AMA recap
1️⃣ What is Timeswap
2️⃣ Potential Strategy/ Arbitrage on APR pricing
3️⃣ Token leaks + 1 thing lambro is looking for
1️⃣ What is Timeswap
🐏 view:
using lending to create an options that behaves like dual investment
Currently expending into wide range of asset with time frame of 1-3months typically
Before jumping into an example here's 🐏 quick word for u to understand how to think of timeswap as a tool
How does it work with plsARB/ARB example
Lender’s POV, as screenshot.
1. Maturity
the time at which the pool expires (borrowers have to repay, else their collateral gets forfeited; lenders will receive their full amount at maturity as per the interest rate they locked-in)
2. Transition price:
the price level beyond which borrowers are expected to repay the loans (or not). In the exact case as the ss, if at maturity, plsARB/ARB falls under 0.30, borrowers are expected to not repay and lenders will receive plsARB.
On the right u can see 3 - 7.
3. APR:
Lenders will earn a fixed 9.99% APR by lending ARB; Borrowers pay a fixed 9.99% APR to borrow ARB.
4. CDP:
The overcollateralisation ratio of the loans. The inverse of LTV.
5. Spot price:
The spot price of plsARB/ARB, for UX purposes only
On the right u can see 3 - 7.
3. APR:
Lenders will earn a fixed 9.99% APR by lending ARB; Borrowers pay a fixed 9.99% APR to borrow ARB.
4. CDP:
The overcollateralisation ratio of the loans. The inverse of LTV.
5. Spot price:
The spot price of plsARB/ARB, for UX purposes only
6. Case 1:
If plsARB/ARB matures above 0.30, Lending 100 ARB will yield 100.96 ARB
7. Case 2:
If plsARB/ARB matures under 0.30, lenders will receive their principal and interest in the form of plsARB. Lending 100 ARB will yield 336.54 plsARB
More great questions from on how to use the protocol such as
🤔 Is the lending rate fixed?
🤔 Can u exit the position early?
🤔 difference between timeswap & @pendle
2️⃣ Potential Strategy/ Arbitrage on APR pricing
Our smart Medium rare community also started digging into more techical questions, Time token & leaks
(Screenshot is a recap link of the AMA group chat recap)
👀
One key interesting is that
timeswap has a option like character yet pricing of an AMM, hence there are likely arbitrage opportunty as the volumes goes up
Difference between timeswap & @pendle
Similar yet very different, but their might be some strategy u can stack on both of them i might share late
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