I want to give you a breakdown of one of the most bullish plays in DeFi 2.0:
$TIME
Too many DeFi people still think the concept is hard to understand.
Instead of telling them NGMI, we should strive to get everybody on board.
It's $TIME (π©,π©) for a THREAD
/1
$TIME
Too many DeFi people still think the concept is hard to understand.
Instead of telling them NGMI, we should strive to get everybody on board.
It's $TIME (π©,π©) for a THREAD
/1
$TIME is a fork of the successful project @OlympusDAO ($OHM).
$TIME is on the Avalance network ($AVAX) founded by the chad, @danielesesta and his team.
Right now, you get 71,208% APY for staking $TIME.
Too good to be true?
Let's dig in!
2/
$TIME is on the Avalance network ($AVAX) founded by the chad, @danielesesta and his team.
Right now, you get 71,208% APY for staking $TIME.
Too good to be true?
Let's dig in!
2/
Okey, but let's take one step back.
Why was $TIME created in the first place?
Dollar-pegged stablecoins have become an essential part of crypto due to their stability.
But the dollar is controlled by the US gov. and the FED.
/3
Why was $TIME created in the first place?
Dollar-pegged stablecoins have become an essential part of crypto due to their stability.
But the dollar is controlled by the US gov. and the FED.
/3
This means a depreciation of USD also means a depreciation of these stablecoins.
The $TIME token aims to solve this by creating a non-pegged stablecoin.
Instead of being backed by $USD, the TIME token is instead backed by several assets ($MIM, $TIME-AVAX LP tokens ++).
/4
The $TIME token aims to solve this by creating a non-pegged stablecoin.
Instead of being backed by $USD, the TIME token is instead backed by several assets ($MIM, $TIME-AVAX LP tokens ++).
/4
This means that 1 $TIME has an intrinsic value that it can't fall below.
Right now the intrinsic value of $TIME is $1,138.
But the price is $8,350 which means it's trading at a 7.3x premium.
And why wouldn't the price be high if you can stake for 71K % APY?
/5
Right now the intrinsic value of $TIME is $1,138.
But the price is $8,350 which means it's trading at a 7.3x premium.
And why wouldn't the price be high if you can stake for 71K % APY?
/5
Most cryptocurrencies have either an infinite supply cap, or a fixed supply.
Rebase tokens (like $TIME) are adjusted by an algorithm, either expanding or contracting the supply.
So if #BTC is digital gold, $TIME is algorithmic gold.
/6
Rebase tokens (like $TIME) are adjusted by an algorithm, either expanding or contracting the supply.
So if #BTC is digital gold, $TIME is algorithmic gold.
/6
On Wonderland you can do 3 things:
1. Stake
2. Bond
3. Sell
Staking and minting are considered beneficial to the protocol, while selling is considered detrimental.
The best scenario is that we stake --> APY goes up
The worst scenario is when we sell --> APY goes down
/7
1. Stake
2. Bond
3. Sell
Staking and minting are considered beneficial to the protocol, while selling is considered detrimental.
The best scenario is that we stake --> APY goes up
The worst scenario is when we sell --> APY goes down
/7
The treasury balance of Wonderland increases when people purchase bonds
If the treasury increases, the intrinsic value ($1,138) goes up
If the treasury decreases, the intrinsic value goes down
You stake if the ROI for staking > mint
You bond if the ROI for staking < mint
/8
If the treasury increases, the intrinsic value ($1,138) goes up
If the treasury decreases, the intrinsic value goes down
You stake if the ROI for staking > mint
You bond if the ROI for staking < mint
/8
If the market price of $TIME spikes up, the algorithm mints more $TIME.
If the market price of $TIME spikes down, the algorithm burns $TIME.
The incentives in this system are designed to make the protocol grow.
$TIME can't be evaluated by looking at market cap & charts.
9/
If the market price of $TIME spikes down, the algorithm burns $TIME.
The incentives in this system are designed to make the protocol grow.
$TIME can't be evaluated by looking at market cap & charts.
9/
Here is what people don't understand and why people think $TIME and @Wonderland_fi is a ponzi:
The APY for staking is 71,200%.
That would normally mean that if you had $1,000 today, you would have $712,000 in 1 year.
But that's not the case for $TIME.
Let me explain...
/10
The APY for staking is 71,200%.
That would normally mean that if you had $1,000 today, you would have $712,000 in 1 year.
But that's not the case for $TIME.
Let me explain...
/10
The APY is only telling you how much your $TIME balance will increase based on the minting schedule.
So if you buy 1 $TIME today you might have 712 $TIME tokens in 1 year, but there would probably also be many more $TIME tokens in circulation.
/11
So if you buy 1 $TIME today you might have 712 $TIME tokens in 1 year, but there would probably also be many more $TIME tokens in circulation.
/11
If the price of an $TIME continues to rise, you would see crazy returns.
And even if the price stays flat or drops some youβd see pretty great gains, since the additional number of $TIME youβre receiving may outpace the decreasing price.
/12
And even if the price stays flat or drops some youβd see pretty great gains, since the additional number of $TIME youβre receiving may outpace the decreasing price.
/12
Let's say you buy 1 TIME for $8,350 now and the market decides that in 1 year time, the intrinsic value of TIME will be $10.
Assuming a daily compound interest rate of 2%, your balance would grow to about 1377 TIME by the end of the year, which is worth around $13,770.
/13
Assuming a daily compound interest rate of 2%, your balance would grow to about 1377 TIME by the end of the year, which is worth around $13,770.
/13
This is still a $5,420 profit (65% gain).
So the reason you are paying a 7.3x premium for $TIME now, is that you do it in exchange for a long-term benefit.
/14
So the reason you are paying a 7.3x premium for $TIME now, is that you do it in exchange for a long-term benefit.
/14
What will be the intrinsic value in 1 year? We don't know yet.
This is game theory and this is why I wanted to be a part of it.
Massive upside, but limited downside IMO.
How can the staking rewards have 71K % APY?
/14
This is game theory and this is why I wanted to be a part of it.
Massive upside, but limited downside IMO.
How can the staking rewards have 71K % APY?
/14
If the protocol fails to achieve a certain number of bond sales (depending on the number of $TIME staked), the APY of 71K% cannot be guaranteed.
In fact, you will see that the APY fluctuates quite a bit.
I remember the APY was around 30K% APY a month ago.
/15
In fact, you will see that the APY fluctuates quite a bit.
I remember the APY was around 30K% APY a month ago.
/15
You've learned the basics, it's $TIME to learn staking:
1. Buy $AVAX
2. Connect your MM to Trader Joe
3. Buy $TIME with your $AVAX
4. Go to app.wonderland.money/stake#/stake
5. Stake your $TIME --> get MEMO
My brother @takegreenpill has a step by stepπ§΅:
/16
1. Buy $AVAX
2. Connect your MM to Trader Joe
3. Buy $TIME with your $AVAX
4. Go to app.wonderland.money/stake#/stake
5. Stake your $TIME --> get MEMO
My brother @takegreenpill has a step by stepπ§΅:
https://twitter.com/takegreenpill/status/1443083272767119364
/16
But as always it gets crazier in DeFi.
You're not happy with 71,000% APY, are you anon?
You may actually use leverage to your position to get more $TIME = more $TIME staked = potentially higher rewards (or loss).
How?
1. Go to Borrow on Abracadabra
/17
You're not happy with 71,000% APY, are you anon?
You may actually use leverage to your position to get more $TIME = more $TIME staked = potentially higher rewards (or loss).
How?
1. Go to Borrow on Abracadabra
/17
2. Go to "Wrap"
3. Wrap your MEMO into wMEMO
4. Change your wMEMO to the stablecoin $MIM
5. Use your $MIM to buy $TIME
/18
3. Wrap your MEMO into wMEMO
4. Change your wMEMO to the stablecoin $MIM
5. Use your $MIM to buy $TIME
/18
Choose "Change leverage" and choose your risk level.
You may loop it 10x and you can choose your liquidation %.
Be careful. This may be a huge extra risk!
NFA. DYOR.
Learn more about ut here:
docs.abracadabra.money/intro/leverageβ¦
/19
You may loop it 10x and you can choose your liquidation %.
Be careful. This may be a huge extra risk!
NFA. DYOR.
Learn more about ut here:
docs.abracadabra.money/intro/leverageβ¦
/19
Risks:
If the whole community lost their trust in $TIME there would only be the intrinsic value left.
My main concern is therefore a bank run (everybody gets out at the same time).
Other than that I feel this is huge gameplay and too big to sleep on.
/20
If the whole community lost their trust in $TIME there would only be the intrinsic value left.
My main concern is therefore a bank run (everybody gets out at the same time).
Other than that I feel this is huge gameplay and too big to sleep on.
/20
This is not financial advice, but if you choose to try $TIME:
Start with a small amount in order to feel more comfortable.
See how it works.
If it feels okay, maybe buy some more.
If not, just get out.
Yes, $TIME may be risky.
But so is staying in fiat.
21/
Start with a small amount in order to feel more comfortable.
See how it works.
If it feels okay, maybe buy some more.
If not, just get out.
Yes, $TIME may be risky.
But so is staying in fiat.
21/
Staking $TIME is a huge asymmetrical bet, and every crypto portfolio should have at least a small exposure to the magic that happens in Wonderland.
Btw, here's a staking/minting calculator you can use:
docs.google.com/spreadsheets/dβ¦
/22
Btw, here's a staking/minting calculator you can use:
docs.google.com/spreadsheets/dβ¦
/22
That was it.
I hope you learned something new, and if you did I would love it if you shared this thread with your friends.
I also have a free newsletter that focuses on DeFi, crypto, and financial freedom.
It's 100% free to sign up:
/23
getrevue.co/profile/route2β¦
I hope you learned something new, and if you did I would love it if you shared this thread with your friends.
I also have a free newsletter that focuses on DeFi, crypto, and financial freedom.
It's 100% free to sign up:
/23
getrevue.co/profile/route2β¦
I also recommend you to follow these legends to learn more about DeFi:
@danielesesta
@TraderDefi
@blocmatesdotcom
@FarmerBrownDeFi
@takegreenpill
@0xUnihax0r
@scupytrooples
@archon_0x
@0x_Sats
@westonnelson
@GuttaCap
@PastryEth
@CroissantEth
@AltcoinGordon
/24
@danielesesta
@TraderDefi
@blocmatesdotcom
@FarmerBrownDeFi
@takegreenpill
@0xUnihax0r
@scupytrooples
@archon_0x
@0x_Sats
@westonnelson
@GuttaCap
@PastryEth
@CroissantEth
@AltcoinGordon
/24
If you could help me spread the word by retweeting the first tweet I would be forever grateful π
/25
https://twitter.com/Route2FI/status/1456275514889433091?s=20
/25
Are you dreaming of an escape from the 9-5?
Do you want to reach financial independence within 5 years?
Learn how I did it at 33 years old and how you can too in my book.
30% off with this link π
DM for crypto.
gumroad.com/l/SvwIc/release
/26
Do you want to reach financial independence within 5 years?
Learn how I did it at 33 years old and how you can too in my book.
30% off with this link π
DM for crypto.
gumroad.com/l/SvwIc/release
/26
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