Welcome Time Travelers!
Fasten your seat-belts as we embark on a journey through space, to travel in Time & explore the wonderland of DeFi 2.0
For first-time explorers, we bring to you our user guide. But before we start, let us brief you on how our spaceship works. Here we go!
Enter Timeswap’s spaceship
- Timeswap is the first fully decentralized AMM-based money market protocol that is permission-less, non-custodial, gas efficient, and works without the need for oracles or liquidators allowing anybody to create a borrowing/lending market for any ERC-20 tokens.
- Timeswap’s proprietary 3 variable AMM is motivated by Uniswap’s constant product AMM. 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.
- As a DeFi primitive, 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.
Our Alpha version is available currently on Rinkeby Testnet. Check it out here.
How to connect your Wallet?
Click on the “Connect to a Wallet (Rinkeby)” option provided in the top right corner (as shown in the fig below). It will take you to your Metamask wallet.
After you change to the Rinkeby network on Metamask, please refresh the application page.
NOTE: We will soon be adding other wallet support to our UI
Where can you see the active pools?
- After you land on the Testnet page, under the “Market” tab, you will see all the active pools listed under their unique token pair header. You can collapse each token pair to view the available pools with different maturity time.
- The standard pool naming convention for the pair is such that the first token is the asset being lent/borrowed and the second token is the collateral.
For eg: DAI-MATIC pool means DAI is the asset and MATIC is the collateral.
How to mint Test Tokens?
Click on the “Test Faucet” tab on the top right to mint test tokens for the active pools(as shown in the fig below)
NOTE: To use Test Faucet option, you will first need Rinkeby ETH test tokens to pay for the transaction fees. To obtain Rinkeby ETH, refer this faucet.
Before we move on to guide you further on the lending and borrowing transactions, we would like you to refer to a simple explanation on the different native tokens you will mint as part of various interactions with our pool.
There are two lending options in our Testnet — Default Lending and Customize Risk Lending
a) Default Lending:
Step 1: Choose the pair of tokens with your specific maturity time preference to initiate your lending transaction. In the above video for example, we’ve taken DAI-MATIC pair maturing on 13th Oct.
You can also see estimated APR and collateral factor for each pool
Step 2: Click on the “Lend” option.
Step 3: In the default box that’ll appear, you can choose the amount of asset that you wish to lend. You’ll be able to see the amount of asset you will receive at maturity in real-time, along with the insurance coverage in the form of collateral token you’ll be able to avail in case of 100% default by the borrower.
Note: For the default lend option, the default interest value to insurance value ratio is 50/50. If you wish to create your own custom risk profile toggle to Customize Risk option
b) Customize Risk Lending:
Step 1: You can customize your risk profile by toggling to the “Customize Risk” option. You’ll be able to see a slider to adjust your risk profile by customizing how much APR you wish to choose vs the insurance coverage you will get.
For example in the default risk option the APR/Insurance values corresponds exactly to the center of this slider.
Step 2: When you move the slider, you’ll be able to see your estimated APR, Collateral Factor, Amount at Maturity, and Insurance in case of 100% default. The higher the APR, the higher is the expected amount at maturity and lower the insurance coverage, and vice-versa. To learn more, click here.
Step 3: Once you’ve selected your risk profile, you can complete your lend transaction by clicking on the “Lend” option.
Step 4: Once confirmed on your Metamask, you’ll be able to see your lend position in the “Dashboard” tab under the Lend section.
c) Claim Assets:
After maturity of the pool, lenders can claim their assets which include the principal and the interest earned. In case the exact asset amount is not realized they will be able to avail their insurance in the form of collateral forfeited by borrowers. The collateral is distributed to the lenders proportional to the insurance coverage each lender opted.
Step 1: You can view your lending positions in the “Dashboard” tab under the Lend section.
Step 2: Select the pool that has matured and Click on “Claim” button to claim your assets.
Step 3: A box will appear where you’ll be able to see the asset amount you will receive along with collateral incase of default.
2. Borrow :
There are two borrowing models in our Testnet — Default Borrowing and Customize Risk Borrowing
To borrow an asset of your choice from the pools, simply deposit collateral and avail loan.
Note: In the default borrowing option to simplify the user experience, the collateral value is calculated based on a set default 50/50 ratio of debt vs collateral. Borrowers have the optionality to pay back debt anytime before maturity without the risk of getting liquidated. No more tedious task of maintaining health factors.
a) Default Borrowing:
Step 1: Choose the pair of tokens you want to initiate your borrowing transaction . In the above video, we’ve taken DAI-ETH pair for this example.
Step 2: On clicking on the DAI-ETH pair, a number of pools will appear in the drop-down each with a different time of maturity, estimated APR, and collateral factor.
Step 3: Select the pool you wish to borrow from and click on the “Borrow” option.
Step 4: In the box that’ll appear on clicking, you can choose the amount of asset that you wish to borrow. You’ll be able to see the amount of asset you will have to repay before maturity, along with the collateral you need to lock.
b) Customize Risk Borrowing:
Step 1: You can customize your risk profile by toggling the “Customize Risk” option on.
Step 2: Under this option, you’ll be able to see a slider you can scroll to adjust your Collateral factor vs the interest you have to repay to the pool. While changing the slider you’ll be able to see your estimated APR, Collateral Factor, Amount to repay and the Collateral values changing in real-time. The lower the collateral you wish to lock, the higher is the estimated APR, and vice-versa. To learn more, click here.
Step 3: Once you’ve selected your collateral vs interest values, you can complete your borrow transaction by clicking on the “Borrow” option. Once confirmed on your Metamask, you’ll be able to see your borrow position in the “Dashboard” under the Borrow section.
c) Repay Debt:
Borrowers can repay their debt anytime before maturity to withdraw their collateral. If the borrowers do not repay the debt before maturity, their collateral is forfeited & distributed to the lenders based on the amount of insurance coverage opted by each lender.
Step 1: You can view your borrowing positions in the “Dashboard” of the app under the “Borrow” section.
Step 2: You can select the pool you have borrowed from and view the Maturity date, amount to be repaid and the collateral locked.
Step 3: Click on “Repay all ”to repay the debt.
Step 4: On clicking, a box will appear in which you’ll be able to see the amount to be repaid & the collateral that you’ll unlock. Click on the “Unlock Collateral ”option to confirm the transaction.
Join our Community!
That’s all folks! Hope the navigation was smooth and you are ready to start your own journey in time with our spaceship. We hope you’ll enjoy using Timeswap Testnet.