Update: All about max supply & upcoming plans
It’s day 6 after the launch of our Automated TIME machine (ATM) plus we’re also nearing max supply — so we think it’s time to give you another lengthy read!
We’d initially thought of doing an AMA on our Telegram, but since the majority voted that there was no need for one, we decided to convert it to a Medium article instead.
When will we hit max supply?
Before we begin, know that:
- TIME has a maximum supply of 86,400 (yup, it’s the number of seconds in a day!)
- Emission rate is 0.05 TIME/block, or about 2,160 TIME/day
- Minting of TIME is dependent on Polygon’s block time
64,838 TIME has been minted at the point of writing. This means that max supply will be reached slightly later than what we’d initially predicted — in early or mid September.
What happens after max supply is hit?
When max supply is hit, there will not be anymore minting of TIME, which creates scarcity.
Our ATM will buyback TIME from the market (if you haven’t already read about what our ATM is about, you should! ) — and given that there is already scarcity, buybacks will further create a consistent buying pressure for TIME.
The result? A positive effect on price.
The ATM (which also functions as our auto-compounding vaults) charges a 5% performance fee:
- 0.5% goes to auto-compounding transaction fees
- 4.5% goes to buybacks of TIME
50% of all TIME that’s bought back to be resupplied to our MasterChef contract, thereby allowing farming to continue indefinitely even after hitting max supply.
This motivates liquidity providers to continue providing liquidity — since TIME rewards will still be paid out consistently.
We also have something else planned for liquidity providers. Read till the end of this article to find out!
The other 50% of TIME that is bought back will be deposited into our Treasury, which will be set aside for the future utility of our protocol — because the only way to avoid hyperinflation (via overfarming) is to create additional utility for TIME.
Once max supply is hit, we’ll also monitor and potentially adjust emissions to keep a sustainable buyback vs farming ratio, for the longevity of our ATM.
This brings us to a very crucial consideration.
Do we need more runway before max supply is hit?
We have a ton of things that we’d like to introduce in order to further increase the sustainability of our protocol. So the answer to this question is a definite YES.
As a core team of two that has rather ambitious plans to create a #FarmRevolution, that naturally means lots of work to do!
We’re committed to deliver the product features and marketing efforts required to effectively scale Timeleap before max supply is hit. Below are our main objectives, and we foresee that we’ll need around 1.5 months to:
- Increase TVL traction for our ATM vaults
- Build more features that will further add utility for TIME
- Secure partnership deals
We understand that ensuring holder confidence is of utmost importance, so we’ll do whatever we can to keep the native APRs as much as possible.
This means that certain important changes will need to be made to emission rates and multipliers (hence APRs might be affected, but we’ll try to keep things as close to what they already are).
What needs to be done to extend the runway?
We’ll be making the following changes in order to ensure sustainability for our protocol. These changes have been timelocked and will be executed at: Aug 30, UTC 8:30 PM.
0.05 => 0.0125 TIME / Block (4x reduction)
This means that the total TIME minted per day decreases from 2,160 TIME to 540 TIME per day. The decrease in emission rate will help extend our runway till max supply by about 36~40 days.
It also means that as devs, we get less TIME minted to our devAddress, but that is not going to stop us from working on this project. The old timers are already aware that one of the reasons why we created Timeleap was to establish our own private DeFi bank. And we have established that with our ATM — farming continues indefinitely and farming rewards will be earned continuously.
There will also be changes to the following multipliers so as to ensure that TIME-USDC and TIME-WETH LPs retain their APRs as much as possible.
Multiplier changes to liquidity pairs (aka Timeleaps)
- TIME-WMATIC QuickSwap LP (75x => 10x)
- TIME-USDC JetSwap LP (75x, no change)
- TIME-WETH JetSwap LP (75x, no change)
Multiplier changes to single asset staking (aka Capsules)
- TIME (45x =>10x)
- WMATIC (10x => 1x)
- USDC (10x => 1x)
- USDT (10x => 1x)
- DAI (10x => 1x)
- WETH (10x => 1x)
- WBTC (10x => 1x)
- QUICK (1.5x => 1x)
- SUSHI (1.5x => 1x)
- DFYN (1.5x => 1x)
- AAVE (1.5x => 1x)
- LINK (1.5x => 1x)
If you recall, 50% of all TIME that’s bought back by the ATM will be resupplied to our MasterChef contract, thereby allowing farming to continue indefinitely even after hitting max supply.
Once we see that there’s sufficient TIME accumulated in MasterChef, we will regulate and improve the emission rate, hence improving APRs.
How will the changes to emission rates and multipliers affect you?
So these are the short term effects that we can foresee:
- Decreased TVL due to lowered APRs on Capsules
- Lowered APRs on Timeleaps (but still decent APR to keep liquidity sustained)
The market could react differently, so some of these might occur as well:
- Increased confidence in project due to prudence in decision-making (unlike some farms that didn’t care about how they were dealing with max supply)
- Low emissions would attract new blood who didn’t manage to get in early. When they see that there’s increased scarcity, it could lead to an uptrend in price action.
- Implied scarcity could increase the price of TIME as we gain more traction for TVL in our ATMs — once we implement auto-compounding for our native LPs. Note, our upcoming partnership will bring forth a huge amount of ATM TVL.
We will mitigate the effects of these changes
We want to emphasize again that we’re committed to making Timeleap a success.
It’s funny how this is, but the main reasons for what brought about the need for the runway extension are the same reasons that will mitigate the effects above.
In summary, these are the 2 main things that we’ve been up to:
- Partnerships (these take time to negotiate and close)
- DeFi innovation in the form of new features
Partnerships & DeFi innovation
We’re on the look out for farms that do not currently have their own auto-compounding vaults. By partnering with us, farms get to experience the following benefits:
- Our auto-compounding vaults are priced extremely competitively as compared to other players in the market that charge $25,000~$50,000 in native tokens
- Auto-compounding enhances liquidity for a pair as users are more likely to remain locked into a pair
- Users enjoy higher APY instead of just APR
- There is no deposit/withdrawal fee for users
DeFi innovation: New feature
We’re creating a new form of dividend pools that have never been seen before in yield farming history (or not that we know of yet). Plus, it’ll also be integrated with our ATM. Just imagine the possibilities!
We’re really excited about this #FarmRevolution feature and have written a separate Medium article just to elaborate more. Check it out here.
Before we conclude this article, know that we have evaluated very carefully before coming to this decision to increase runway — and that every decision we make is meant for the long term sustainability of the protocol. We’re in it for the long haul (this is our DeFi bank after all!).
Timeleap was never meant to be a typical yield farm where price pumps and dumps to nothing within a couple of weeks, or where developers are only in it for the short term. If those are the type of farms that you look for, then there are a ton in Polygon that crash and burn real quick.
Timeleap is meant for a different sort of investor. One who is looking for a long term solution that keeps inflation at bay; one who wants to retire with a daily stipend of 2~5% APRD to get out of this never-ending rat race of reality; and one who believes in the #FarmRevolution that we’re creating.
It is possible. Let’s do this together.