Timeless Finance

The blog of Timeless Finance, a perpetual yield token protocol

PYT pricing analysis: round 2

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....

May 7, 2022

Timeless AMM

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....

March 6, 2022

Perpetual Yield Tokens: What they are and how to price them

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....

February 28, 2022

Introducing Timeless

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....

February 14, 2022