[Timeswap] [FINAL] [STIP - Round 1]

[ameeth]

SECTION 1: APPLICANT INFORMATION

Provide personal or organizational details, including applicant name, contact information, and any associated organization. This information ensures proper identification and communication throughout the grant process.

Applicant Name:

Ameeth Devadas

Project Name:

Timeswap

Project Description:

Timeswap is the first Oracleless lending & borrowing protocol in DeFi that enables permissionless creation of money markets for any ERC-20 / ERC-4626 token pair in a secure manner. It is like Uniswap, but for lending and borrowing.

Team Members and Qualifications:

Riccson - Founder
Previously founder @Einstar. Masters in Financial Mathematics from Ateneo de Manila University.
https://www.linkedin.com/in/ricssontimeswap/

Ameeth Devadas - Co-Founder
(Ex-Fintech/TradFi)
Ex-Head of Product & Tech Aurigin / Institutional Credit at Bank
MBA, Indian Institute of Management (IIM), Mumbai
https://www.linkedin.com/in/ameeth-devadas-9717679/

Harshita Singh - Co-Founder
Ex- Head of Supply Budgeting and Planning Private Labels Walmart-India.
MBA, Indian Institute of Management (IIM), Mumbai
https://www.linkedin.com/in/harshita-singh-a1561a79/

Puneet Kaura - Product Manager
https://www.linkedin.com/in/pkaura/

Domica Santoso - Head of BD
https://www.linkedin.com/in/domica/
https://twitter.com/archipelabro

Developers
Sharath - Front End Developer
Varun Krishna - Smart Contract Developer
Kumar Satyarth - Smart Contract Developer
Yashvik Naithani - Smart Contract Developer
Heemak Varma - Front End Developer
Shatabarto Bhattacharya - Smart contract Developer

Others

Dalsulkh Tapaniya - Design Lead
Tanishq Singh - Visual Designer
Manvinder Arora - Marketing & Community Manager
Harsha Kakaraparthy - Community Manager
Krish Arvind Bhatt - Content Writer
Sounak Roy - Content Writer
Anupama Singh - Operations Lead

Full team can be found at www.timeswap.io

Project Links:

• Website: https://timeswap.io/
• Twitter: https://twitter.com/TimeswapLabs
• Discord/Discourse/Community: Timeswap
• Github: Timeswap Labs · GitHub
• Technical/EconomicDocumentation: What is Timeswap? - Timeswap
• Demo: https://app.timeswap.io
• Defillama: https://defillama.com/protocol/timeswap
• Dune: https://dune.com/timeswap-labs/timeswap-v2-master-dashboard
  p.s: Dune does not capture data for Mantle, zkEVM and Base
• TG: Telegram: Contact @timeswap
• Link3: link3.to/timeswap_labs
• Documentation: What is Timeswap? - Timeswap

Contact Information:

TG: Telegram: Contact @ameethd

Twitter: https://www.twitter.com/0x42069x

Email: ameeth@timeswap.io

Do You That Your Team WIll Be Subject to a KYC Requirement?:

Yes

SECTION 2: GRANT INFORMATION

Detail the requested grant size, provide an overview of the budget breakdown, specify the funding and contract addresses, and describe any matching funds if relevant.

Requested Grant Size:

200,000 ARB

P.S: Reduced our grant request from 400,000 ARB to 200,000 ARB based on feedback

Grant Matching:

$400,000 in TIME tokens.

Minimum 1% of the total TIME token supply to be distributed on Arbitrum network during phase 1 of pre-mine, from Oct ‘23 to Jan ‘24.

TIME tokens will begin distribution with a pre-mine period from mid-October 2023, with a reference valuation of our seed round at $40mn FDV.

The proposed 1% supply of TIME tokens is valued at $400,000 as per our seed round valuation.

Grant Breakdown:

40% of the grant allocated as incentives to ARB markets.

30% of the grant allocated as incentives to ETH (WETH or wstETH) markets.

30% of the grant allocated as incentives to other markets such as Pendle, Trader Joe, GMX, Plutus, etc. (will not be utilized to incentivize TIME token pools, if any)

Funding Address:

0x3B29b39b37afec28EC636f0f9e16290e28b5A377

Funding Address Characteristics:

2/3 safe multisig between founders on Arbitrum network

Contract Address:

TimeswapV2OptionFactory:

0x406d3Dfcbe20b642c2262b29b960822975371502

TimeswapV2PoolFactory:

0x47ffFCc12b1731e543e79640EBc151E958f56f4D

SECTION 3: GRANT OBJECTIVES AND EXECUTION

Clearly outline the primary objectives of the project and the Key Performance Indicators (KPIs) used to measure success. This helps reviewers understand what the project aims to achieve and how progress will be assessed.

Objectives:

• To introduce & encourage users on Arbitrum to a new DeFi primitive that enables secure Oracle-less lending
• To enable deeper liquidity and higher capital efficiency for ARB & ETH markets on Timeswap, thereby introducing Oracle-less lending to new set of users
• To enable deeper liquidity for high quality collateral that cannot be listed on other money markets - Assets from following protocols - Pendle, GMX, Trader Joe etc
• Enable credit to otherwise underserved markets (e.g., long-tail assets, staked assets, LP tokens, etc.) in a secure and scalable manner

Key Performance Indicators (KPIs):

1. TVL for incentivised pools
2. Lend and Borrow volume for incentivised pools
3. User acquisition rate for incentivised pools
4. Comparables of the above versus non-incentivised pools

How will receiving a grant enable you to foster growth or innovation within the Arbitrum ecosystem?

Timeswap is a new DeFi primitive for credit markets (i.e., money markets). We create money markets that operate without the need for oracles or on-chain liquidity, due to our non-liquidatable and fixed-term design enabled by our unique 3-variable AMM

This provides us with the unique ability of creating secure and scalable money markets for any assets(ERC-20 or ERC-4626). By any, we mean any — we are not restricted by oracle support for the asset, which is a major blocker for asset listing in oracle-dependent money markets.

Money markets in itself unlocks capital, boosting capital efficiency and bringing additional utility to tokens. By incentivising deep liquidity in Timeswap pools, not only are users secure from oracle manipulation attacks but it also enables large transactions, leading to greater overall capital efficiency. The strongest benefit of a capital efficient protocol/ecosystem is its ability to scale quickly.

By incentivising the main pools (ARB and ETH markets), a trickle down effect to other markets already live on Timeswap (e.g., Pendle’s PT-GLP, StaFi’s rETH, TraderJoe’s sJOE, WooFi’s weWETH, etc.) will begin. Thus indirectly boosting capital efficiency across our partner protocols and the greater Arbitrum ecosystem.

Justification for the size of the grant:

Timeswap has been live on Arbitrum since March 23, 2023 and have supported the creation of money markets for over 20 assets, mostly which could not be listed elsewhere due to oracle dependencies and liquidity requirements. More information on the listed assets can be found in the ‘Protocol Performance’ segment , under Section 4.

Timeswap will match the approved grant size with $TIME tokens, all to be used as incentives for the approved pools.

The grant will allow Timeswap to scale by creating money markets for new assets and deepening our existing markets.

Execution Strategy:

100% of the allocations will be used for liquidity mining incentives to be distributed to end users during the proposed period from Oct ‘23 to Jan ‘24

A summary of the distribution:

• 40% of the grant allocated as incentives to ARB markets.
• 30% of the grant allocated as incentives to ETH markets.
• 30% of the grant allocated as incentives to other markets.

	Duration (days)	Allocation (%)
ARB market (Oct’23 - Jan’24)	90	20.0
ARB market (Oct’23 - Dec’23)	45	10.0
ARB market (Dec’23 - Jan’24)	45	10.0
ETH market (Oct’23 - Jan’24)	90	15.0
ETH market (Oct’23 - Dec’23)	45	7.5
ETH market (Dec’23 - Jan’24)	45	7.5
Other markets*	-	30.0

*Other markets includes Pendle’s PT-GLP, TraderJoe’s sJOE, GMX’s ETH GM, etc.

The non-ARB/ETH markets to be incentivised will be shared in the bi-weekly reports and subject to comments/feedback from the community.

For efficacy purposes, incentives to the non-ARB/ETH markets will only be allocated to markets where the underlying assets is a governance/LP/receipt token of an established project, as per the discretion of the community. (Will not be allocated to TIME token pool)

The incentives will be fully distributed no later than January 31, 2024.

Any ARB incentives not distributed will be returned to the Arbitrum DAO.

Grant Timeline:

Users who are eligible for ARB rewards from the eligible pools will be able to claim their rewards on the following dates in the dedicated rewards section on the app. Rewards section will also mention how much TIME tokens has been earned on top of ARB rewards from the qualifying pools.

• November 20, 2023
• December 20, 2023
• January 20, 2023

Do you accept the funding of your grant streamed linearly for the duration of your grant proposal, and that the multisig holds the power to halt your stream?

Yes

SECTION 4: PROTOCOL DETAILS

Provide details about the Arbitrum protocol requirements relevant to the grant. This information ensures that the applicant is aligned with the technical specifications and commitments of the grant.

Is the Protocol Native to Arbitrum?:

No.
Although Arbitrum is our primary chain today with over 10 partner protocols as well as seen in our TVL distribution (Arbitrum consistently above 70% dominance), volumes and the listed pools.

On what other networks is the protocol deployed?:

Polygon PoS

Polygon zkEVM

Mantle

Base

What date did you deploy on Arbitrum?

March 23, 2023

Protocol Performance:

Data sources: Defillama: https://defillama.com/protocol/timeswap

• Dune: https://dune.com/timeswap-labs/timeswap-v2-master-dashboard
  p.s: Dune does not capture data for Mantle, zkEVM and Base

• Timeswap was the first protocol to enable lending and borrowing for ARB token

  • We launched ARB token as collateral ~3h after TGE (on March 23, 2023), whereas other markets had to wait for 1-2 days due to oracle dependencies

• $10.7mn cumulative organic lend and borrow volume on Arbitrum without any token incentives

• $680k TVL on Arbitrum (peak over $1.4mn - without any incentives)
  • $1.15mn aggregate TVL (peaking at $1.8mn)

• Total number of transactions: 10,180

• Unique users: 4,615

• The first and only protocol for plsARB, by listing it as collateral without needing any secondary liquidity on DEXes
• Amongst others, we are also the first ever (and oftentimes only) money market to list these assets:
  • unshETH (unshETH)
  • sJOE (TraderJoe’ Staked JOE)
  • ETH GM (GMX V2’s ETH GM LP)
  • STG (Stargate’s STG)
  • rETH (StaFi’s rETH)
  • auraRDNT-WETH (Aura Finance’s RDNT/WETH vault)
  • aura2BTC (Aura Finance’s 2BTC vault)
  • ETH-USDC APT (TraderJoe’s ETH-USDC Auto-Pool)
  • WETH-WBTC APT (TraderJoe’s WETH-WBTC Auto-Pool)
  • weWETH (WooFi’s Supercharger ETH LP)
• Additionally, we have listed these assets:
  • Pendle’s PT-GLP, PT-wstETH’25
  • Level Finance’s snrLLP
  • Gains Network’s gDAI
  • UmamiDAO’s glpUSDC

Protocol Roadmap:

• Liquidity mining program (pre-mine):
  • Starting Oct’23 we will be launching a pre-mine phase for TIME tokens wherein users can participate in qualifying pools and earn a share of TIME token rewards that will be unlocked at a future date.
  • We propose to distribute the ARB grant simultaneously during the first phase, from Oct’23 to Jan’24
• New Assets: Ongoing with multiple new assets lined up
• Permissionless creation of money markets: Post phase 1 of LM
• Timeswap V3 (concentrated liquidity, native liquidation w/o oracles): In progress

Audit History:

Timeswap V2 has completed 3 audits (Code4rena, Peckshield, Trust Security) to date.

Audit 1: https://app.timeswap.io/documents/PeckShield-audit-report.pdf

Audit 2: Code4rena | Keeping high severity bugs out of production

Audit 3: https://www.trust-security.xyz/timeswap-audit

SECTION 5: Data and Reporting

Provide details on how your team is equipped to provide data and reporting on grant distribution.

Is your team prepared to create Dune Dashboards for your incentive program?:

Yes, we have an existing Dune dashboard to track all the pool level and user data. Do note as we enable lending / borrowing for exotic assets, some of these assets have yet to be indexed by Dune

Timeswap V2 Dune Dashboard:
https://dune.com/timeswap-labs/timeswap-v2-master-dashboard

https://dune.com/timeswap-labs/timeswap-v2-dashboardpool-wise

While we will continue to maintain Dune dashboards, the most accurate data will be available on our in-house analytics page which is going live soon (est. before mid-Oct).

We will also provide bi-weekly report on all the KPIs mentioned above in the format desired by the DAO.

Does your team agree to provide bi-weekly program updates on the Arbitrum Forum thread?

Yes we can supply bi-weekly updates highlighting the KPIs mentioned above in the forum

Does your team acknowledge that failure to comply with any of the above requests can result in the halting of the program’s funding stream?

Acknowledged.

[Matt_StableLab]

Hello @ameeth thank you for your application! Your submission meets all requirements to be considered for a snapshot vote.

[medusa]

I support this proposal for Timeswap. Creating money markets without relying on oracles or on-chain liquidity is a game-changer for DeFi. Timeswaps’ approach not only enhances security by mitigating oracle manipulation risks but also unlocks capital, significantly improving capital efficiency and utility for various tokens. Through using this grant to incentivize liquidity in Timeswap pools, I’m eager to see how this facilitate larger transactions and increasing overall capital efficiency. This proposal aligns perfectly with the growth and security goals of the Arbitrum ecosystem, and I’m excited to see it in action.

[traderjoe]

We at Trader Joe have enjoyed working with Timeswap; Their unique and innovative approach to money markets is beneficial to the Arbitrum’s DeFi ecosystem, and this proposal should be taken into consideration.

[EynSoph]

Overall, there’s a lot of strategies DeFi users can do with both Pendle and Timeswap. If the purpose of STIP is to encourage activity in Arbitrum’s DeFi ecosystem, then it makes sense to support this as they are synergistic to all the other protocols they work with.

[George_WG]

Timeswap occupies an important niche in Arbitrum as the only money market that can support quite literally any token, and that shouldn’t go unrecognized. 400k ARB seems like a reasonable ask, especially considering how Timeswap is heavily Arbitrum-centric, and has offered to match the grant with TIME tokens too. I support this proposal.

[sonic_level]

+1 to this proposal by Level Finance. The Timeswap team has demonstrated a high level of integrity and professionalism. As project partners, we look forward to increasing use cases and composability on Arbitrum in future.

[SEEDGov]

Since your TVL for Arbitrum is around 600k, you would be below the recommendations for the STIP. Would you be willing to amend your ask to be in line “Beacon Grants”, below 200k?

[apoorv9]

Timeswap have been true builders in the space. The have been championing the ‘oracle free money market’ concept for sometime now. We at Stella believe the proposal should be taken into consideration, and plan on supporting it.

[Jonezee]

Having worked with their team recently, I can confirm they are professional, capable and pleasant operators in the Arb Space. The proposal feels well-argued too.

[ameeth]

Hey SeedGov,

Thank you for reviewing our proposal. We are happy to provide more clarity on the requested amount.

We are open to amending the request, and wish to share some context around the numbers:

• While the current TVL is around $600K, our peak TVL on the Arbitrum network reached approximately $1.4 million.
• We were able to achieve volumes of over $10 million in lending & borrowing with the above-mentioned TVL, showcasing significant utility for our product, even in the absence of any additional rewards.
• The entire TVL and volume was achieved without any token incentives, and we did not receive any ARB airdrop which could have been used as incentives earlier.
• We are committing to distributing a minimum of 1% of the TIME token supply, valued at 1:1 or higher than the grant request, to users on the ARB network before January 31, 2024. Very few protocols are committing to a 1:1 match of the grant value to be distributed to end users.

While we understand there are baseline metrics like TVL to qualify teams, we request the understanding of delegates to the context that TVL is driven to a large extent by rewards, and many teams building valuable products still do not have the rewards to attract liquidity to solve the cold start problem.

At Timeswap, we have dedicated considerable time and resources to ensure our product is ready to scale. With the launch of our pre-mine in a few weeks, we are confident we will be able to meet the TVL mentioned in the eligibility and evaluation guidelines.

We look forward to your feedback and comments and are open to further discussions to address any concerns. Thank you for your consideration.

[SEEDGov]

I am aware of the historical metrics you refer to and the job entailed in sustaining TVL/volume without token incentives. Nevertheless adherence to the STIP recommendations would allow you to garner further support

[Matt_StableLab]

Hello @ameeth ,

Now that your application has been marked eligible, please be advised of the remaining steps in the application process to be completed prior to the Review Period Deadline:

@Matt_StableLab

• Review Period Deadline: October 4, 2023 11:59 PM EST

Please complete the following steps required for your application to proceed to Snapshot:

@Matt_StableLab

2. Once feedback is collected, applicants will need to change their application title from [DRAFT] to [FINAL] by the Review Period deadline: October 4, 2023 11:59 PM EST. At that time, all eligible proposals with the following formatted titles will be migrated to Arbitrum Snapshot to vote. The correct format for a proposal ready to move to vote looks like this: [Project Name] [FINAL] [STIP - Round 1].

Once you change your proposal title to final, please tag an Arbitrum Foundation Forum Moderator (@ stonecoldpat @ cliffton.eth @ eli_defi) by the Review Period deadline to notify them of your proposal’s readiness.

Once marked as [Final], your application post will be locked by moderators and you will no longer be able to edit your proposal.

[Matt_StableLab]

@ameeth Here is the updated process for changing your title.

To change your proposal to final, please tag an Arbitrum Foundation Forum Moderator (@ stonecoldpat @ cliffton.eth @ eli_defi) by the Review Period deadline to notify them of your proposal’s readiness to proceed from [Draft] to [Final] status.

Once notified, the Arbitrum Foundation Forum Moderator will adjust your title from [Draft] to [Final] status. Once marked as [FInal], your application post will be locked by moderators and you will no longer be able to edit your proposal.

[Mani7]

Timeswap’s team is highly qualified with diverse experience, the grant breakdown is clearly defined and aligns with objectives and KPIs. Overall seems a net positive impact for the Arbitrum ecosystem. We plan to support this proposal.

[ameeth]

Thank you for the feedback, we have reduced the grant request to 200k to be part of the Beacon Grants program

[ameeth]

Hey @stonecoldpat @cliffton.eth @eli_defi

Our proposal is ready to move from DRAFT to FINAL stage, thank you for all the work done to ensure a smooth process. Also big thank you to the team at Stablelab!

[alta1r]

We’ve worked with the Timeswap team to launch the first unshETH lending market and have been very impressed by their ability to execute and their strong communication skills. Fully support this proposal on behalf of myself and the unshETH core team!

[cliffton.eth]

Post has been marked FINAL and locked.

[Ceazor]

Timeswap is a very unique product. TBH, i dont use it much, but it certainly has users and PMF.

Giving ARB tokens to users that lend out
ETH, and ARB is hard to criticize.

The “other” i hope it’s just core tokens (and deriv’s) and not project tokens and most projects have more that enough to supply that side.

I can most likely support a grant for this project.