Timeless Finance

We’re excited to announce that Timeless will launch its token, Liquidity Incentive Token (LIT), on January 9, 2023. LIT sits at the heart of our liquidity engine, Bunni, which aims to maximize liquidity on Uniswap v3. By launching LIT, we hope to enable other projects to incentivize their token liquidity with capital efficiency orders of maginitudes higher than current levels. We also plan to use LIT ourselves to bootstrap liquidity for the Timeless yield markets....

Motivation Liquidity mining has been a popular method to bootstrap liquidity for decentralized exchanges and lending protocols, where the protocol offers token incentives to people who provide liquidity. However, the liquidity incentivized in such a way is often mercenary, with the farmers immediately dumping the reward tokens. Why wouldn’t they? It’s free money after all. The interests of the farmers are not well-aligned with those of token holders: the farmers are being rewarded at the token holders’ expense....

We’re excited to announce that Timeless has raised an angel round from some of the most reputable angels in the crypto space. The angel round enables us to further our mission of building open and permissionless infrastructure in the DeFi space, by funding our growth and bringing value-add angels onboard. The Timeless team has carefully selected angels who are deeply knowledgable in DeFi and are here for the long term. Our list of angels includes (but is not limited to):...

Perpetual futures (perps) have been the go-to solution for degen crypto traders to get leveraged long/short exposure to assets. It feels almost too powerful: just provide a price oracle, and a perps market enables you to speculate on anything you want: stocks, forex, tokens on other chains, etc. It is therefore tempting to build perps for yield rates (e.g. Aave interest rates), which at first glance can unlock some powerful speculation, such as going 10x long or short on yield rates....

Today, Timeless launches on Ethereum Mainnet. Timeless enables you to boost your yield from any supported farm, speculate on yield rates, and hedge your yield against rate drops. Timeless makes on-chain yield markets not only possible, but highly liquid & scalable. In short, Timeless lets you do more with your yield. The Launch The Timeless yield market protocol is now live on Ethereum Mainnet and can be used by anyone. You can try it out by visiting timelessfi....

In the previous post on PYT pricing we laid out a model for determining the intrinsic value of PYTs and NYTs, but we did not offer any justifications as to why the market price will follow this model. This post will focus on that. First of all, there are no risk-free arbitrages available when the price of PYT deviates from the pricing model, because there doesn’t exist a single “correct” price to deviate from....

Note: Timeless AMM has been deprecated in favor of a superior solution, this paper is kept here for archival purposes. 1. Introduction This paper will describe the derivation & details of the Timeless AMM designed for trading Timeless perpetual yield tokens (PYT) and negative yield tokens (NYT). There are three design goals of Timeless AMM: Each liquidity pool should support three tokens: the underlying asset, the PYT, and the NYT....

Update: A follow-up post is available here This post will introduce the mechanics behind Timeless perpetual yield tokens and negative yield tokens. It will also provide a model for pricing them based on the expected future yield rate. What are perpetual yield tokens? Timeless perpetual yield tokens (PYT) represent streams of future yield earned by a certain amount of principal. For example, say we have a PYT that uses yearn’s USDC vault to generate yield, then 1 PYT represents the right to claim the yield generated by 1 USDC in the yearn USDC vault from now to forever in the future....

Timeless is a yield tokenization protocol that offers Perpetual Yield Tokens (PYTs), which give their holders a perpetual right to claim the yield generated by the underlying principal. Timeless also offers Negative Yield Tokens (NYTs), a protocol-native way to short yield rates. Features No expiry dates Unlike existing yield tokens offered by Element/Pendle/APWine, Timeless PYTs and NYTs are perpetual ERC20 tokens that never expire. This makes them far easier to buy, hold, & use, far easier for other protocols to integrate, and far easier to provide deep liquidity for....